Private Label Foods & Beverages in the U.S, 8th Edition: 2014 Report

DUBLIN, Oct. 7, 2014 /PRNewswire/ -- Research and Markets has announced the addition of the "Private Label Foods & Beverages in the U.S., 8th Edition" report to their offering.

Sales of private label foods and beverages have been challenged by a frugal consumer who is struggling with the lingering effects of recession, a continuing sluggish economy, and higher food prices. These factors have affected overall spending on both national and private label brand groceries in the U.S.

Total U.S. retail sales of the overall private label food and beverage market were $102 billion in 2013, up about 2% over 2012. Unit sales were virtually flat, with average unit prices higher during the year. The total food and beverage market grew at 1.4% to reach $530 billion in 2013, with unit sales also flat. Food, with sales estimated at $80 billion compared to $22 million for beverages, accounts for nearly 80% of overall private label dollar and unit sales. Overall private label penetration of the total market was about 20% in dollars and units in 2013.

Private label growth has slowed from the last several years when consumers flocked to private label brands during the recession and its aftermath. Consumers sought out lower prices and greater value, and retailers responded with numerous introductions of their own brands. They raised the quality of product and packaging to equal national brands in many cases, and leading retailers launched different private label brands to create portfolios offering consumers good, better, best and specialty product options.

The most successful retailers have heavily marketed and promoted their private label brands as equal or superior alternatives to national brands. In some cases, retail brands like Costco's Kirkland have achieved the status of a national brand in consumer's minds, thus providing the retailer with competitive advantage. Aldi and Trader Joe's are two of the most aggressive and successful private label marketers that have, much like Costco, extremely loyal customers. Private label products, accounting for more than 80% of products sold in their stores, help cement that loyalty for Aldi and Trader Joes.

Making healthier eating more affordable is a major trend in the U.S., and many consumers feel eating healthier is too expensive. Manufacturers and retailers have tried to address consumer concerns with more affordable healthy food options and several retailers have built private label brands around a position of affordable healthy eating. Retailers launched natural, organic private label brands years ago promoting value and product attributes.

Key Topics Covered:

Chapter 1 Executive Summary

Chapter 2 Trends & Innovations

Chapter 3 Overall Private Label Food & Beverage Market

Chapter 4 The Private Label Food Market

Chapter 5 The Private Label Beverage Market

Chapter 6 Competition in the Retail Landscape

Chapter 7 Marketing & Promotion

Chapter 8 The Consumer

For more information visit http://www.researchandmarkets.com/research/h8wlqx/private_label

Media Contact: Laura Wood, +353-1-481-1716, [email protected]

SOURCE Research and Markets