Private Brand Growth Provides Opportunities for Packaging Manufacturers

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Rosemont, Illinois — The presence of private labels in the retail market is growing, and so are the opportunities for packaging companies that serve these customers, according to presenters at the Private Label Manufacturer Association’s annual trade show on Monday.

Circana data shows that store brands outperformed national brands in the U.S. in both unit and dollar sales in the first 11 months of 2025, said PLMA President Peggy Davies. Store brand sales increased 0.4% during the period, while domestic brand sales decreased 0.7%. Store brands saw a 3.6% increase in dollar sales, while domestic brands only increased 1.1%.

Store brand market share is 23.1% of unit sales and 21% of dollar sales, Davis said. PLMA project to save brand product profits It will increase from $272 billion last year to $280 billion in 2025, a record high.

Shelf-ready packaging essentials for groceries

The effects of this growth are trickling down through supply chains and packaging manufacturers, which speakers said are essential to the private label ecosystem.

“Private brands are at the core of our company. Ready-to-sell packaging is also at the core of our company,” said Joel Rampoldt, CEO of Lidl US.

Lidl is striving to be a low-cost grocer, and ready-to-sell packaging is critical to that business model. It allows grocery stores to keep staffing to a minimum, in part by allowing employees to pack shelves efficiently.

“Why stack one can at a time when you can put all 12 flats in at once? It’s simple, easy to replicate and easy to execute,” he said. “We will never deliver a high-touch, high-service shopping experience. We keep our operating costs as low as possible and give it all back to our customers.”

Ramoldt said shelf-ready packaging also helps the consumer experience.

“Shelf-ready packaging, when done right, is actually a selling point: it looks good, has good color, is clearly branded, is attractive, and helps sell more of the product,” he said. Without it, “our customers don’t know what it is, it’s hard to access,” and they can’t get in and out of the store quickly. “If we do it well…it looks cool and it sells.”

One reason for the growth of private brands, according to some of the 1,900 exhibitors at the PLMA show, is that consumers tend to lower prices during periods of cost pressures and economic uncertainty. There is a repeated shift of consumers from well-known brands to low-cost store brands. Packaging company earnings announcement Last year.

Emphasis on innovation and partnerships

Numerous packaging manufacturers are trying to capitalize on the growth of private labels by forming partnerships with product manufacturers and co-packaging companies. They presented their solutions and new innovations at the trade fair, especially packaging products suitable for the food, beverage and foodservice markets.

Accredo Packaging highlighted its flexible packaging and printing capabilities to serve private label manufacturers, especially co-packers. Numerous trade show speakers and exhibitors spoke about the importance of co-packaging for private labels as it provides high-quality consumer products at affordable prices.

British Columbia-based WJ Packaging Solutions has introduced flexible packaging innovations, such as pet food bags with transparent windows that allow consumers to see inside the product. single substance Recyclable pouch. One official noted that packaging innovations often occur first for premium products and then move to more budget-friendly products because margins are more favorable.

Ohio State Representative Aeroflex demonstrated the company’s flexibility, hatless The Squeeze Pack includes two packs released this year: Boogie’s for Steam Bath and The Furminator’s Pet shampoo.

exponent That’s it The booth detailed the Italian packaging company’s desire to win more business in the United States, especially in the PLA-coated fiber-based ice cream market. The company also produces double wall fiber cold cups and compostable A textile lid developed for Starbucks.

Pactech’s The booth highlighted a variety of plastic lids. multipack Carrier containing: after consumption Recycled content, including newly released content packlock Child-resistant caps for use on beverage cans Infused with cannabis. Employees explained that state regulations may soon require these safety locks for individual servings of infused beverages, and the company is prepared to expand PakLock production to meet demand, whether for branded or private label beverages.

Huhtamaki’s booth showcased a variety of fiber packaging products from the Finland-based company, including food service supplies, as did Michigan-based AJM Packaging. based in pennsylvania Paperworks Introducing food service containers made from 100% recycled fiber. Ultra ShieldOil- and oil-resistant water-based barrier coatings and representatives outlined the potential for using the innovation in branded and private label applications.

“Consumers tell us loud and clear: They want quality, innovation and value,” he said. Kristal Sevcik, Chairman of the Board of Directors, PLMA. “Private Label isn’t just competing, we’re leading the way.”