Market leaders gradually losing ground to their store-brand counterparts
In the first half of 2025, private label sales have made a significant impact on the grocery landscape, outperforming national brands in both dollar and unit sales.
According to recent data, private label sales increased by 4.4% in dollar terms, significantly outpacing national brands, which grew by only 1.1% during the same period. Unit sales for private labels also edged up by 0.4%, while national brands saw a 0.6% decline in unit sales. This growth has resulted in all-time highs for private label market share, reaching 21.2% in dollars and 23.2% in units [1][2][3][5].
Key product categories driving this growth include refrigerated goods, beverages, frozen foods, and general foods. Refrigerated goods saw a 13% increase in dollar sales, led by ready-to-drink coffees and meal kits. Beverages grew by 4.8% in dollar sales, including functional sodas and sparkling waters. Frozen foods grew by 3.8%, fuelled by demand for high-quality convenience meals. General foods, such as snacks and pantry staples, saw 2.5% growth [1][4].
Retailers are also playing a significant role in the expansion of private label products. Target Corp., for instance, has expanded its store brand lineup with innovative products such as Favorite Day hot chili lime popcorn and Good & Gather Strawberry Banana Yogurt Pouches. Albertsons Cos. has launched the Chef’s Counter own brand featuring ready-to-cook marinated meats just before the summer grilling season [2].
The Private Label Manufacturers Association (PLMA) projects total private label sales to approach $277 billion in 2025, surpassing the 2024 record of $271 billion, indicating sustained momentum and growing consumer preference for private label products that combine quality, value, and innovation [1][3].
In summary, private labels are gaining a larger share of the market with faster growth rates than national brands in 2025, supported by product innovation, strategic retailer brand expansions, and consumer demand for value and quality [1][2][3][4][5].
[1] Source 1 [2] Source 2 [3] Source 3 [4] Source 4 [5] Source 5
In the thriving retail sector, the finance industry has taken notice of the increased market share of private label products, with estimates predicting a staggering $277 billion in sales for 2025, surpassing the previous record [1][3]. This growth, driven by product innovation and strategic expansions of private label lines by retailers such as Target Corp. and Albertsons Cos., is capturing the attention of general-news outlets [2].
