Private Label Food and Beverages Market to Grow by USD 204.6 Billion (2025-2029), Driven by Private Label Growth and AI Redefining the Landscape - Technavio

NEW YORK, Jan. 6, 2025 /PRNewswire/ -- Report with market evolution powered by AI - The global private label food and beverages market size is estimated to grow by USD 204.6 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of 6.9% during the forecast period. Increasing dollar value share of private label brands is driving market growth, with a trend towards increasing online presence of private label brands. However, low penetration of private label food and beverage vendors poses a challenge. Key market players include Aldi Stores Ltd., Amazon.com Inc., Carrefour SA, Costco Wholesale Corp., Dollar General Corp., EDEKA ZENTRALE Stiftung and Co. KG, Giant Eagle Inc., Giant of Maryland LLC, HEB LP, Hy Vee Inc., Koninklijke DSM NV, Reliance Industries Ltd., Schwarz Unternehmenskommunikation GmbH and Co. KG, Sobeys Inc., SouthEastern Grocers LLC, Target Corp., Tata Sons Pvt. Ltd., Tesco Plc, The Kroger Co., Trader Joes, United Natural Foods Inc., Walmart Inc., and Wegmans Food Markets.

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Market Driver

The Private Label Food and Beverages market is experiencing significant growth, particularly in sectors such as Supermarkets and Hypermarkets, Convenience Stores, Dollar Stores, General Merchandise Retailers, Department Stores, and E-Retailers. In-demand product categories include Non-GMO Bakery products like bread and cakes, Cereals, Dairy items such as Yogurt and Ice Cream, Baby food, Poultry, Egg, Fish, Condiments and sauces, Deli dressings, Salads, Gravies and sauces, General food, Savoury snacks, Confectionary, Soup, Processed food, Coffee, Tea, Bottled water, Juices, Carbonated beverages, Sports drinks, and Alcoholic drinks. Consumers seek health benefits from Premium private-label products, driving demand for labeling that highlights product quality, particularly in dairy and meat categories. Overall, the market trends towards convenience, health, and affordability. 

The private label food and beverage market is experiencing significant growth due to the increasing use of smartphones and the Internet. Consumers can now easily research and purchase these products online, making private label offerings from retailers like Target Corp. And Costco Wholesale popular choices. For instance, Target's Archer Farms brand and Costco's Kirkland Signature products are available on Amazon, catering to time-pressed urban consumers' convenience. This e-commerce trend is driving the sales of private label food and beverage items. 

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Market Challenges

• The Private Label Food and Beverages market faces several challenges. Supermarkets and Hypermarkets, Convenience Stores, Dollar Stores, General Merchandise Retailers, Department Stores, and E-Retailers intensify competition by offering private label versions of popular Non-GMO Bakery products, Cereals, Dairy items like Yogurt and Ice cream, Baby food, Poultry, Egg, Fish, Condiments and sauces, Deli dressings, Salads, Gravies and sauces, General food, Savoury snacks, Confectionary, Soup, Processed food, Coffee, Tea, Bottled water, Juices, Carbonated beverages, Sports drinks, and Alcoholic drinks. Consumers seek health benefits from Premium private-label products, leading to increased pressure on labeling and product quality. Dairy and meat products, in particular, must meet high standards for safety and freshness. Carbonated drinks face challenges due to health concerns and increasing demand for natural alternatives. Overall, the Private Label Food and Beverages market requires continuous innovation and improvement to meet evolving consumer preferences.
• Private label food and beverages, sold by retailers under their own brand names, face intense competition from national brand manufacturers in the global market. While private label vendors have gained significant market share in countries like Switzerland, Spain, and the UK, their penetration remains low in developing nations. Factors such as consumer brand loyalty and reputation make it challenging for private labels to compete. Moreover, their smaller scale and less redundant supply chains leave them vulnerable to supply chain disruptions. In 2022, many private label products disappeared from shelves, leaving retailers to bear the consequences.

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Segment Overview

This private label food and beverages market report extensively covers market segmentation by

1. Distribution Channel
• 1.1 Offline
• 1.2 Online
2. Product 
• 2.1 Food
• 2.2 Beverages
3. Geography 
• 3.1 Europe
• 3.2 North America
• 3.3 APAC
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Offline- Private label food and beverages are widely sold through various offline distribution channels in the US, including supermarkets, hypermarkets, grocery stores, hard discount stores, dollar stores, and convenience stores. The expansion of private label vendors, such as Aldi Stores, into new regions like Louisiana and the Southeast, is driving growth in the offline segment. For instance, Aldi's significant push into the Southeast resulted in a 15,000 square meter retail space opening near the Shenzhen North high-speed rail station in China. In addition, retailers like Costco Wholesale reported a nearly 10% increase in sales during the holiday season in 2023, with e-commerce sales jumping by 17.7% and private label brand Kirkland Signature contributing significantly to the sales figure. Another example is Supermarket Grocery Supplies Pvt Ltd., which plans to increase its private label offerings in non-food categories and open 1,000 physical locations by 2026 to gain a competitive advantage. Grocery and convenience stores, popular for their extended hours and diverse consumer base, provide a platform for consumers to compare national brands and private label brands. Hard discount stores, offering a range of private label versions at lower prices, provide better shelf space and visibility for these brands. The offline segment's growth, driven by these offline distributors' service delivery innovations, is expected to accelerate, contributing to the global private label food and beverages market's growth during the forecast period.

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Research Analysis

The Private Label Food and Beverages market encompasses a wide range of products sold under the brand name of retailers instead of a recognized manufacturer. This market caters to various retail formats including Convenience Stores, Dollar Stores, General Merchandise Retailers, Department Stores, and E-Retailers. The demand for private label products is on the rise due to factors such as increasing consumer preference for clean label products, non-GMO options, and transparency in labeling. Bakery, dairy, meat, and condiments and sauces are popular categories in this market. Product quality is a key focus area for retailers to differentiate their offerings and build customer loyalty. Private label products offer cost advantages to consumers while ensuring the desired taste, freshness, and convenience.

Market Research Overview

The Private Label Food and Beverages Market encompasses a wide range of products sold under the brand name of retailers instead of well-known consumer brands. Supermarkets and Hypermarkets, Convenience Stores, Dollar Stores, General Merchandise Retailers, Department Stores, E-Retailers, and various other formats sell these items. Products include Non-GMO Bakery items like bread and pastries, Cereals, Dairy products such as yogurt and ice cream, Baby food, Poultry, Egg, Fish, Condiments and sauces, Deli dressings, Salads, Gravies and sauces, General food items, Savoury snacks, Confectionary, Soup, Processed food, Coffee, Tea, Bottled water, Juices, Carbonated beverages, Sports drinks, and Alcoholic drinks. Premium private-label products offer health benefits, and labeling focuses on product quality. Dairy, meat, and carbonated drinks are popular categories in this market.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Distribution Channel
• Offline
• Online
• Product
• Food
• Beverages
• Geography
• Europe
• North America
• APAC
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

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SOURCE Technavio