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Diving overview:
- Sales of private label products in the U.S. increased 3.3% from 2024 to $282.8 billion, according to Private Label Manufacturer Association (PMI) statistics released Tuesday.
- According to PLMA, private label sales will grow almost three times faster in 2025 than domestic brand sales, which grew by 1.2%.
- This data reflects strong and ongoing shopper and retailer interest in store brand products as affordability concerns continue to preoccupy consumers.
Dive Insights:
Store brand sales increased across multiple categories in 2025, building on the nearly 4% year-over-year growth recorded in 2024.
The refrigerated category ranked first among all store brand sales last year, recording an increase of more than 6%. Beverages took second place with an increase of nearly 5%, followed by pet care (3.7%), grooming (2.8%), frozen (2.4%), general foods (1.6%), and general merchandise (0.9%).
“The growth of private labels reflects a shift in consumer priorities as retailer-owned brands increasingly compete and win not just on price, but on value, quality, health and sustainability,” PLMA President Peggy Davies said in a statement.
According to PLMA, sales of private label products also increased by about 0.5% (approximately 430 million units) in 2025, reaching a record 68.7 billion units. Meanwhile, domestic brand units fell 0.6% last year, according to the trade group.
Among private label products last year, pet care products led the way with a 5.4% increase, followed by alcohol (4.4%), beverages (2.3%), refrigerated products (0.7%) and general foods (0.2%).
Over the past five years, private label sales have increased more than 30%, and dollar share has increased from 19.1% to 21.3%. During the same period, annual sales of store brand products increased by more than 4%, and sales volume increased by nearly 2 percentage points to 23.5%.
As inflation and other economic concerns become more prevalent in the economy, private label products have gained traction with consumers, and higher-income shoppers have also become more price sensitive. For example, consumers with household incomes of more than $100,000 are more likely to buy private-brand groceries despite growing more confident about their financial security, a survey by management consulting firm Alvarez & Marsal found last year.