
special report
CO-PACKING & PRIVATE-LABEL OPPORTUNITIES
Private-label offerings meeting consumer demands for value
More than half of Gen Z shoppers say they ‘always/frequently’ choose where they shop based on store brands.
Chief Editor
By Fred Wilkinson
A recent consumer survey finds that 88% of Americans have changed their grocery shopping habits in response to inflation, with 44% opting for generic or store-branded products.
In 2024, total sales of store brands reached $271 billion – up $9 billion year over year and an all-time high, according to the Private Label Manufacturers Association, which found that total unit sales of store brand products grew by 1.5 billion last year, to a record 67.4 billion. Private-label dollar sales grew 3.9% in 2024, compared with 1% for branded products, with store brand unit sales growing 2.3% while national brands saw a decline of -0.6%.
PLMA market research suggests continuing growth for private-label products, particularly among the youngest consumer demographic, with a 2024 PLMA study finding more than half of the Gen Z shoppers saying they “always/frequently” choose a place to shop due to its store brands.
“Companies should consider additional ways to innovate on flavor, packaging, nutritional content and labeling to grow market share in this segment,” said Courtney Schmidt, Wells Fargo Agri-Food Institute sector manager. “Health conscious consumers are driving many of the shifts in demand we are seeing in food purchases. The growing adoption of GLP-1’s, coupled with shoppers looking for healthier versions of their favorite foods -- and the growing support for new legislation that would eliminate certain additives and dyes -- are all signaling a rebalancing of the American diet. Food manufacturers, including private label, have an opportunity to rethink and repackage their products to target this growing consumer base.”
With the increasing consumer demand for private-label products, retailers are ramping up their focus on private-label meat and poultry offerings to capitalize on the trend.
Some recent private-label meat case rollouts include:
- Albertsons Cos. has introduced its new Chef’s Counter line, debuting with a selection of ready-to-cook marinated meats. The brand is exclusively available in Albertsons Cos. stores, including Albertsons, Safeway, Vons, Jewel-Osco, ACME and Shaw’s. The products aim to meet growing consumer demand for cooking meals at home with adventurous flavors and globally inspired ingredients.
- The Giant Co. is rolling out Hewitt Foods USA's new brand of USDA-certified organic, grass-fed and finished beef -- The Organic Meat Co. Under the partnership, the grocer will feature the beef brand in all 193 Giant Co. stores across Pennsylvania, Maryland, Virginia and West Virginia.
- Louisiana-based grocer Rouses is marketing store-branded frozen whole stuffed chickens and pork tenderloins. The stuffed chicken products feature regionally inspired tastes including Jalapeno Cornbread, Shrimp & Sausage Jambalaya, Crawfish Jambalaya and Dirty Rice, while the stuffed pork tenderloins offer options including Shrimp & Andouille and Boudin flavors. The stuffed chickens retail for &18.99, while the stuffed pork tenderloins are priced at $24.99.
Looking ahead to continuing growth, the private-label industry is planning for the Second Annual Store Brands Month in January 2026. The effort involves retailers, manufacturers and service providers in developing engaging in-store events and social media outreach to promote the value and uniqueness of private-label products.
PLMA is supporting the promotional effort with social media content, logos/graphics and more at www.storebrandsmonth.com.
The Store Brands Month 2025 effort in January included participating companies such as Aldi, Albertsons, Associated Wholesale Grocers, Dollar General, K-VA-T, Raley’s, SpartanNash, Topco and Wakefern among the numerous retailers, wholesalers and distributors nationwide.
Image credit: Fred Wilkinson
