Dairy was the leading packaged food category in terms of private label market size in the U.S. in 2022, with more than 27 billion U.S. dollars. Store brand baked goods followed with a market size of close to 11.8 billion dollars.

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US Private-Label Food And Beverage Market Size 2025-2029

The us private-label food and beverage market size is forecast to increase by USD 52.2 billion at a CAGR of 7.1% between 2024 and 2029.

The Private-Label Food and Beverage market in the US is witnessing significant growth, driven by the increasing dollar value share of private label brands. Consumers are increasingly turning to private label options due to their perceived value and quality, which is challenging traditional branded players. Another trend shaping the market is the rising demand for private label organic food and beverages, reflecting the growing health consciousness among consumers. However, the market faces challenges, including the low penetration of private label food and beverage companies in certain categories, which presents both opportunities for expansion and competition. Companies looking to capitalize on market opportunities should focus on expanding their private label offerings in underpenetrated categories and catering to the growing demand for organic options. Simultaneously, navigating the challenges of market competition and consumer preferences for quality and value will be crucial for success.

What will be the size of the US Private-Label Food And Beverage Market during the forecast period?

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The private-label food and beverage market in the US is experiencing significant dynamics and trends, shaped by advancements in food technology, digital marketing strategies, and stringent food safety regulations. Food microbiology plays a crucial role in ensuring food safety and authenticity, while food fraud detection technologies help prevent adulteration. Ingredient standardization and allergen management are essential for maintaining brand loyalty and catering to diverse consumer needs. Product recalls can significantly impact market performance, emphasizing the importance of effective supply chain transparency and traceability. Food technology innovations, such as plant-based foods, probiotics and prebiotics, and personalized nutrition, are reshaping consumer preferences. Market segmentation analysis and customer segmentation are vital for targeting specific demographics and optimizing sales forecasting. Digital marketing strategies, including influencer marketing and pay-per-click (PPC) advertising, are increasingly popular for reaching wider audiences. Food labeling regulations, food chemistry, and data analytics are critical components of food product development and marketing. Food trends forecasting and contract manufacturing help companies stay competitive and adapt to evolving consumer demands. E-commerce fulfillment and packaging technology enable businesses to reach customers more efficiently and effectively, while alternative proteins and dietary supplements cater to the growing demand for healthier options. Customer feedback analysis and sales forecasting are essential tools for managing product lifecycle and optimizing market performance.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. ProductPrivate-label foodPrivate-label beverageDistribution ChannelOfflineOnlineEnd-userRetail consumersFoodservice and hospitalityGeographyNorth AmericaUS

By Product Insights

The private-label food segment is estimated to witness significant growth during the forecast period.

In the private-label food market, companies prioritize product differentiation through premiumization and expansion of specialty offerings. ALDI, for example, introduces a high-end private-label brand, Specially Selected, which includes dairy, frozen foods, pantry staples, and snacks and sweets. Notable products under this brand are Specially Selected Blue Cheese Stuffed Queen Olives and Specially Selected Super Premium Chocolate Ice Cream. Quality control and non-GMO verification are crucial aspects of private-label food production. Shelf life and ingredient labeling are essential for consumer trust. Packaging innovations cater to sustainability initiatives, such as circular economy and waste reduction, while fair trade practices enhance brand development. Product formulation focuses on artificial sweeteners, functional ingredients, and catering to food allergies. Inventory management, employee training, and pricing strategies ensure efficient supply chain operations. Organic certification, haccp certification, and food safety audits maintain regulatory compliance. New product development, market research, and health and wellness trends drive innovation. Beverage production, food waste management

Private Label Food And Beverages Market size was valued at USD 431.99 Billion in 2023 and is projected to reach USD 709.26 Billion by 2030, growing at a CAGR of 7.35% during the forecast period 2024-2030.

Global Private Label Food And Beverages Market Drivers

The market drivers for the Private Label Food And Beverages Market can be influenced by various factors. These may include:

Cost Savings & Value for Money: Because private label products are often more affordable than national brands, consumers are drawn to them. Private labels are an appealing alternative since they are less expensive, particularly in recessionary times. Retailers' Attention Is Focused on Private Labels: Retailers have been making investments to grow and advertise their private label businesses. Private label items now place more of an emphasis on quality and innovation, which helps to win over customers' loyalty and trust. Customer Perception and Trust: Confidence has grown as a result of favorable customer experiences with private label goods. More customers are inclined to select private label products over established brands as long as shops make the necessary investments to uphold quality and satisfy customer expectations. Innovation and customisation: To provide distinctive and superior private label items, retailers are investing more and more in product innovation and customisation. Private brands are able to stand out and attract a wider range of customers thanks to this innovation. Retailer Control Over Supply Chain: When it comes to private label products, retailers have more influence over the supply chain. They can maintain consistent product quality, effectively manage inventories, and react swiftly to shifting consumer preferences thanks to this control. Growth of E-Commerce: Retailers now have a platform to display and sell their private label products directly to customers thanks to the expansion of e-commerce. Customers can conveniently obtain a variety of private label solutions through online channels. Consumer Preferences for Regional and Eco-Friendly Products: Retailers frequently source locally for their private label lines, stressing freshness and environmental responsibility. This has helped private label items, which have profited from the increased focus on sustainability and support for small businesses. Better Packaging and Quality: Retailers have made investments to raise the caliber of their private label merchandise on par with or better than national brands. Furthermore, private label items' appealing and educational packaging has added to their attractiveness on store shelves. Global Retailer Expansion: Private label product growth has been aided by the big retailers' foreign market expansion. Retailers use the power of their brands to reach a wider audience with private label products.

The U.S. private label food market was valued at USD 145.63 billion in 2024 and is projected to reach USD 283.36 billion by 2030, growing at a CAGR of 11.73%.

Processed fruit and vegetables were the leading private label packaged food category in terms of market share in the U.S. in 2022, at 39.6 percent. Store brand edible oils followed with a 36.8 percent market share.

Sales of private label food and beverage products peaked in the United States in 2023. In that year, sales totaled 152 billion U.S. dollars, up from 106.7 billion dollars in 2019.

Private Label Market size is expected to be worth around USD 1623.4 Billion by 2034, from USD 915.1 Billion in 2024, at a CAGR of 5.9%.

In 2023, the unit share of private labels in U.S. food and non-food departments was highest among general merchandise, with a 32.6 percent share. This was followed by health with 25.1 percent of the products in this department labeled as store brands.

[Keywords] Market include Carrefour, Dollar General, SuperValu, H-E-B, Kroger

This statistic illustrates the unit sales of private label breakfast products in the United States in 2016, broken down by category. In that year, the unit sales of private label frozen waffles amounted to 75.3 millions in the United States.

Private Label Food and Beverages Market Outlook

The global private label food and beverages market size is projected to grow significantly from $156.8 billion in 2023 to $267.3 billion by 2032, expanding at a compound annual growth rate (CAGR) of 6.2%. The surge in demand for affordable yet high-quality food products is a pivotal factor driving this growth. Consumers are increasingly opting for private label brands as they provide a cost-effective alternative without compromising on quality, spurring market expansion.

Several growth factors contribute to the burgeoning private label food and beverages market. First, the increasing consumer preference for private label products due to their cost-effectiveness is a significant driver. As consumers become more price-conscious, especially in the wake of economic uncertainties or inflation, private label products offer a compelling alternative to branded items. This shift is particularly noticeable in regions experiencing economic pressures, where the value proposition of private labels is most evident. Furthermore, retailers are investing heavily in the quality and packaging of their private label offerings, which has helped to elevate consumer perception and boost sales.

Another critical growth factor is the heightened focus on health and wellness. Private label brands have adapted to this trend by introducing organic, non-GMO, and other health-focused product lines. This shift aligns with the global trend towards healthier lifestyles, attracting a broad range of consumers. Retailers are expanding their private label portfolios to include these niche products, which command higher profit margins and cater to the growing segment of health-conscious consumers. Additionally, the flexibility of private labels allows retailers to quickly respond to emerging trends and consumer preferences, giving them a competitive edge.

The proliferation of retail chains and online retail platforms also plays a crucial role in the market's expansion. Supermarkets, hypermarkets, and online retailers are becoming major distribution channels for private label products. The extensive reach of these channels ensures that private label products are accessible to a wide audience. Moreover, online retailing has opened new avenues for private label brands, providing consumers with the convenience of shopping from home. The growing popularity of e-commerce has further accelerated the adoption of private label products, as online platforms often offer exclusive deals and discounts on these items.

Regionally, North America and Europe are currently the largest markets for private label food and beverages, driven by well-established retail sectors and high consumer acceptance of private label products. In contrast, the Asia Pacific region is expected to witness the fastest growth over the forecast period, fueled by rapid urbanization, increasing disposable incomes, and a growing middle-class population. The diverse consumer base in these regions presents lucrative opportunities for market players to expand their private label offerings. Additionally, the increasing penetration of modern retail formats in emerging economies is likely to bolster the demand for private label products.

Product Type Analysis

The private label food and beverages market is segmented by product type into bakery and confectionery, dairy products, beverages, snacks, ready meals, and others. The bakery and confectionery segment holds a significant share of the market, driven by the high demand for everyday staples such as bread, cakes, and pastries. Consumers often opt for private label bakery products due to their affordability and comparable quality to branded alternatives. Retailers continuously innovate in this segment, introducing new flavors and healthier options, which helps to attract a diverse consumer base.

Dairy products are another substantial segment within the market. This includes milk, cheese, yogurt, and other dairy-based items. The growing awareness of the nutritional benefits of dairy products has led to increased consumption, thereby boosting the demand for private label dairy items. Additionally, the segment has seen a rise in the popularity of lactose-free and plant-based dairy alternatives, catering to consumers with dietary restrictions or preferences. Retailers are capitalizing on this trend by expanding their private label dairy portfolios to include a variety of options, ensuring they meet the diverse needs of their customers.

The beverages segment, encompassing both alcoholic and non-alcoholic drinks, is

North America Private Label Chocolate market size will be USD 170056.88 million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.4% from 2024 to 2031. North America has emerged as a prominent participant, and its sales revenue is estimated to reach USD 234008.5 Million by 2031.This growth is mainly attributed to the region's evolving consumer preferences towards premium and personalized food products.

Private Label Service Market Outlook

As of 2023, the global private label service market size is valued at approximately $400 billion and is projected to reach around $650 billion by 2032, expanding at a robust compound annual growth rate (CAGR) of 5.5%. This growth is primarily driven by the increasing consumer preference for cost-effective alternatives to branded products, enhanced quality of private label goods, and retailers’ strategies to improve margins and customer loyalty.

One of the key growth factors for the private label service market is the rising consumer demand for high-quality yet affordable alternatives to national brands. Private label products, often positioned at lower price points, provide an attractive option for budget-conscious consumers, especially during economic downturns. Additionally, advancements in manufacturing technologies have enabled private label products to match or even exceed the quality of branded counterparts, further fueling their adoption. Retailers are capitalizing on this trend by expanding their private label offerings across various categories, from food and beverages to personal care and household products.

Another significant driver is the strategic initiatives by retailers to enhance their profit margins and build stronger customer loyalty. Private label products generally offer higher profit margins compared to national brands due to lower marketing and promotional expenditures. Retailers are increasingly investing in the development and marketing of their private label brands, often creating exclusive product lines that cater to specific consumer needs and preferences. This not only differentiates their offerings from competitors but also fosters a sense of loyalty among customers who appreciate the value and quality of private label goods.

The expansion of e-commerce and online retailing is also a critical growth factor for the private label service market. The convenience of online shopping has led to a surge in demand for a wide range of products, including private label items. E-commerce platforms enable retailers to showcase their private label products to a broader audience, leveraging data analytics to understand consumer behavior and preferences. This digital transformation allows for more targeted marketing strategies, personalized shopping experiences, and efficient supply chain management, all of which contribute to the growth of the private label service market.

Regionally, the private label service market exhibits significant growth potential in Asia Pacific, North America, and Europe. In Asia Pacific, the burgeoning middle-class population, increasing disposable incomes, and rapid urbanization are driving the demand for private label products. North America remains a dominant market due to the strong presence of major retail chains and a well-established e-commerce infrastructure. Europe is also witnessing substantial growth, with consumers increasingly favoring private label goods for their perceived value and quality. Each of these regions presents unique opportunities and challenges, shaping the overall dynamics of the global private label service market.

Product Type Analysis

The product type segment of the private label service market encompasses a diverse range of categories, including food and beverages, personal care, household products, apparel, and others. Among these, the food and beverages segment holds a significant share, driven by the increasing consumer preference for affordable and high-quality alternatives to branded products. Private label food and beverages are often perceived as offering better value for money, leading to their widespread adoption in both developed and emerging markets. Retailers are continuously expanding their private label portfolios in this category, introducing innovative products that cater to evolving consumer tastes and dietary preferences.

Personal care products are another rapidly growing segment within the private label service market. The rising awareness of personal hygiene and grooming, coupled with the increasing availability of high-quality private label personal care items, is driving demand. Consumers are becoming more discerning in their choice of personal care products, seeking options that offer both effectiveness and affordability. Retailers are responding to this trend by launching private label personal care lines that feature natural and organic ingredients, catering to the growing demand for clean and sustainable products.

Household products also constitute a vital segment of the private label

With 40.4 billion U.S. dollars, refrigerated products were the most purchased items in the private label market segment in 2021. General food and general merchandise followed in the ranking with 33.8 and 25.2 billion U.S. dollars, respectively.

This statistic shows the unit sales of private label pasta and rice in the United States in 2018, broken down by category. In the 52 weeks ending June 17, 2018, U.S. sales of private label rice amounted to approximately 136.7 million units.

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US Packaged Food Market Size 2025-2029

The US packaged food market size is forecast to increase by USD 582.3 million at a CAGR of 7.7% between 2024 and 2029.

The Packaged Food Market is experiencing significant growth, driven by the increasing demand for food products with longer shelf lives and the rising consumer awareness towards clean-label products. This trend is particularly prominent in the US market, where strict food regulations ensure a high level of consumer safety and trust. However, companies operating in this market face challenges such as increasing competition and the need to comply with evolving regulatory requirements. To capitalize on these opportunities, companies must focus on innovation and product differentiation, leveraging clean labeling and extended shelf life technologies. This trend is particularly evident in the demand for functional foods, which offer health benefits beyond basic nutrition.
Strategic partnerships and collaborations can also help companies navigate the complex regulatory landscape and expand their reach in the market. Overall, the Packaged Food Market presents a compelling opportunity for companies seeking to meet evolving consumer preferences and regulatory requirements while navigating a competitive landscape.

What will be the size of the US Packaged Food Market during the forecast period?

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The packaged food market encompasses a wide range of products, including convenience foods, organic offerings, ready-to-eat meals, frozen foods, snack items, dairy products, meat alternatives, plant-based options, gluten-free items, and various specialty and ethnic foods. This market continues to evolve, driven by consumer preferences for healthier, more convenient, and more diverse food choices. Key trends include a growing focus on food labeling and nutritional information, as well as the rise of functional foods catering to specific health needs. Food allergies and dietary restrictions have also fueled demand for gluten-free and other specialty products. These include fortified dairy products, meat alternatives, and plant-based offerings.
The packaged food industry's size is substantial, with continued growth driven by the convenience and versatility these products offer. As consumers prioritize health and wellness, there is a growing emphasis on food quality and brand loyalty. The supply chain remains critical to ensuring the timely delivery of these products, with logistical challenges and sustainability concerns shaping industry discussions. Overall, the packaged food market is dynamic and diverse, reflecting the evolving needs and preferences of consumers worldwide.

How is this market segmented?

The market report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Method

  Packets
  Bottles
  Boxes
  Cans
  Others


Distribution Channel

  Offline
  Online


Type

  Bakery and cereals
  Dairy products
  Snacks and nutritional bars
  Beverages
  Others


Geography

  US

By Method Insights

The packet segment is estimated to witness significant growth during the forecast period. Packaged food continues to be a significant market, catering to consumers' demand for convenience, portability, and extended shelf life. The trend toward single-serve and individualized packaging has gained momentum, driven by consumers' preference for smaller portions and minimized waste. This is particularly prevalent in categories such as condiments, sauces, and snacks. For instance, single-serve coffee packets from brands like Folgers, a subsidiary of J.M. Smucker, have gained popularity for their quick and convenient brewing. Food safety, sustainability, and health and wellness are key factors influencing the packaged food market. Sustainable packaging solutions, such as eco-friendly materials, are increasingly being adopted to reduce waste and promote environmental responsibility. This trend has also led to the growth of private labels, as retailers seek to differentiate themselves and offer unique, high-quality options. The packaged food market encompasses various categories, including convenience foods, ready-to-eat meals, frozen foods, snack foods, dairy products, meat products, plant-based foods, and specialty foods. Efficient and effective logistics are essential for ensuring freshness and minimizing waste.

Functional foods, organic options, and dietary needs catering to various health concerns are also driving market growth. Consumers seek transparency in food labeling and nutritional information, which has led to an increased focus on clean labeling and natural flavors. The packaged food market encompasses various categories, including convenience foods, ready-to-eat meals, frozen foods, snack foods, dairy products, meat

Latin America Private Label Chocolate market will be USD 21257.11 million in 2024 and is estimated to grow at a compound annual growth rate (CAGR) of 4.6% from 2024 to 2031.The market is foreseen to reach USD 32130.7 million by 2031 owing to consumer preferences towards premium and personalized food products

This statistic shows the dollar sales of private label pasta in the United States in 2019, broken down by category. In the 52 weeks ending April 21, 2019, U.S. sales of private label pasta amounted to about 594.73 million U.S. dollars.

Aldi, due to its nature as a discounter chain, was the leading company in the U.S. in terms of packaged food private label product launches, with 2,806 launches between 2019 and 2023. Target followed with 2,392 store brand product launches.

This statistic shows the average price per unit of private label pasta and rice in the United States in 2018, broken down by category. In the 52 weeks ending June 17, 2018, the average price per unit of U.S. private label rice amounted to 2.64 U.S. dollars.