US - Private-label Food and Beverage Market by Product, Distribution Channel and End-user - Forecast and Analysis 2024-2028

US Private-label Food and Beverage Market Forecast 2024-2028

The US Private-label Food and Beverage Market size is projected to increase by USD 43.9 billion, at a CAGR of 6.43% between 2023 and 2028

The product segment encompasses a diverse array of offerings, including private label alcoholic and non-alcoholic beverages. Private label non-alcoholic beverages span aerated waters, mineral water, juices, squashes, syrups, smoothies, and shakes. On the alcoholic side, the range includes wine, champagne, beer, whiskey, brandy, liqueur, spirits, sake, rice wine, and cocktails. The prominence of a wide variety of specialty beverages, coupled with the widespread availability of private label options throughout the US, fuels the segment's growth. US consumers favor these private label beverages due to their lower costs compared to national brands, particularly evident in the robust market presence of private label alcoholic beverages. The private label alcoholic beverage category has experienced notable expansion since 2015, with various brands introducing private label wines. Anticipated to maintain a rapid year-over-year growth rate, the segment is poised for further acceleration, reflecting the increased product offerings and vendor participation. Key company offerings, exemplified by Costco Wholesale Corp, encompass private label food and beverages spanning cheese, dairy, deli, bakery, desserts, snacks, meat, seafood, and more.

Market: Overview

The market shows an Accelerate CAGR during the forecast period.

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 Market Growth Analysis Driver 

Increasing dollar value share of private label brands is notably driving market growth. The private label food and beverage business accounted for a large portion of the retail sector in the US. Sales of private label food and beverage products are primarily fueled by their low prices, convenience, and widespread availability. Factors such as rising premium and specialist product options have enabled private label brands to enjoy more benefits in terms of dollar-value sales. For example, Costco touts its business model by providing high-quality items at far lower prices than other big companies. This encourages more consumers to buy its private label products with confidence.

MOreover, the easy availability of private label food and beverage goods in the US also drives dollar-value sales. Consumers in the US are more likely to shop for convenience than for a national brand that is only available at a distant store. During the forecast period, this trend in consumer-buying patterns is likely to continue, boosting the dollar value sales of private label food and beverage goods in the market during the forecast period.

 Market Growth and Trends 

Expansion of private label brands into specialty products is an emerging trend shaping market growth. Initially, vendors of private label food and beverages exclusively sold commodities like eggs, milk, and canned vegetables. Due to rising competition from national brands, however, private label sellers are expanding into a variety of specialist categories, such as almond milk, nut butter, and better-for-you products. Consumer demand for niche private label products has risen in recent years in the US. As a result, vendors of private label food and beverages are coming up with specialty items that are well-positioned to attract new consumers and acquire private-label food and beverage market in US shares in order to capitalize on this potential.

However, the quality of specialty products has improved, and they are more aligned with the personal beliefs of consumers. Costco, for example, has a private label brand called Kirkland Signature, which comprises a range of cholesterol-free, fat-free, gluten-free, kosher, organic, and trans-fat-free foods. Other retailers, such as Target, are continuously launching specialty food products in the US. As a result, private label brands of food and beverages belonging to the specialty category will acquire more shelf space as a result of such product extensions. This will positively impact the market trends and analysis during the forecast period.

Market Challenge 

Frequent recalls of private label food and beverages due to stringent regulations is a significant challenge hindering market growth. Most vendors in the private-label food and beverage market in US purchase or source raw materials from third-party suppliers. Improper handling of these raw materials or supplies can adversely affect the safety and quality of the finished products. Food safety compliance authorities in any country have the right to shut down a business and recall its products from the private-label food and beverage market in US, if these products pose a threat to the well-being of consumers. A product recall severely affects a private label brand image as well as its operation and sales. Product recalls can lead to distrust among consumers.

In addition, several other regulatory agencies monitor the compliance of businesses in the food and beverage industry, which include the FDA, FTC, and the USDA. Failure to comply with these standards may have serious repercussions, such as product recalls. Several private label brands voluntarily recalled their products due to non-compliance with regulatory standards. Thus, frequent product recalls due to stringent regulations will negatively impact the market during the forecast period.

Market Segmentation by Distribution Channel

Supermarkets and hypermarkets have emerged as the most popular distribution channels for private label food and beverages. The growing retail industry and the establishment of numerous retail outlets are driving sales in this segment. These outlets offer consumers a wide range of private label food and beverage products to choose from and provide them with the convenience of finding everything under a single roof. Discounted price comparisons indicated on shelves encourage consumers to buy private label food and beverages from supermarkets and hypermarkets. The rapid geographic expansion of private label vendors across the US is a major factor driving the segment. Grocery and convenience stores are popular due to their multi-utility outlets, broad merchandise mix, and extended hours of operation. Hence, private label big brands have better shelf space and visibility in hard discount stores. These offline distributors are also involved in various service delivery innovations, such as same-day delivery and other promotional offers. As a result, the offline segment is expected to register an accelerating year-over-year growth rate during the forecast period.

Market Segmentation by Product

The market share growth by the private-label food segment will be significant during the forecast period. The segment includes private label food products such as whole foods, processed foods, frozen foods, chilled foods, sweets and snacks, bakery products, ready-to-eat meals, ice creams, dried processed foods, confectioneries, snack bars, and other specialty foods (gluten-free foods, non-genetically modified organism (non-GMO) foods, and organic foods).

The private-label food segment was the largest and was valued at USD 65.97 billion in 2018. 

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Moreover, some of the prominent private label food offerings are Specially Selected Blue Cheese Stuffed Queen Olives and Specially Selected Super Premium Chocolate Ice Cream. The company shares complete product information on the website for customers in the US and notifies the availability of the products at stores. Such strategies create trust in brands and enhance brand image among customers. Kroger offers several premium products through its private label brands, such as Simple Truth and Private Selection. Kroger offers USDA-certified Private Selection Angus Beef Boneless Ribeye Steak and mentions the nutritional content in the product description. The company offers Simple Truth Organic Dairy-Free Salted Butter and Simple Truth Organic Gluten-Free Non-Dairy Sour Cream under the Simple Truth brand, targeting customers who prefer organic foods. In the US, since people are inclined toward organic food products and moving away from conventional food, demand for private label organic food products among budget-conscious customers is likely to increase during the forecast period.

Company Overview

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market forecasting growth and analysis.

• Key Offering - Amazon.com Inc.: The company offers private label food and beverages such as Vedaka Premium Pumpkin Seeds 200g, Amazon Brand Vedaka Popular Raisins 500g, Amazon Brand Vedaka Quinoa 1 KG, and more.
• Key Offering - Berner Food and Beverage: The company offers private label food and beverages such as dips, sauces, aerosol cheese, functional beverages, coffee and tea beverages, and more.

The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including Albertsons Companies Inc., Amazon.com Inc., Berner Food and Beverage, Costco Wholesale Corp., Dollar General Corp., Giant Eagle Inc., HEB LP, Hy Vee Inc., Koninklijke Ahold Delhaize NV, LiDestri Food and Drink, Lidl US LLC, SouthEastern Grocers LLC, Target Corp., The Kroger Co., Trader Joes, TreeHouse Foods Inc., United Natural Foods Inc., and Walmart Inc.

The market analysis and report of qualitative and quantitative analysis of companies have been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research and growth report forecasts market growth by revenue at and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Product Outlook
  • Private-label food
  • Private-label beverage

• Distribution Channel Outlook
  • Offline
  • Online

• End-user Outlook
  • Retail consumers
  • Foodservice
  • Hospitality

Market Analyst Overview

The global private label food and beverage market has witnessed substantial growth, particularly in the US, where a rising health-conscious trend among millennials has driven demand for healthy snacks and ready-to-eat meal options. In response, the food and beverage industry, comprising manufacturers and F&B brands, has focused on efficient production and innovative food processing techniques to cater to the fast-paced lifestyle of the working class.

Moreover, the market has also embraced the convenience of online food delivery systems and online retailing, providing a variety of 'on-the-go' food products with a commitment to product quality and sustainable packaging solutions such as wraps, films, and pouches. Moreover, collaborations with nonprofit organizations have led to marketing pledges aimed at promoting healthier choices for children, reinforcing the industry's dedication to responsible advertising and addressing the growing preference for flexible packaging in the US.

US Private-label Food and Beverage Market Scope
Report Coverage	Details
Page number	139
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 6.43%
Market growth 2024-2028	USD 43.9 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	6.29
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Albertsons Companies Inc., Amazon.com Inc., Berner Food and Beverage, Costco Wholesale Corp., Dollar General Corp., Giant Eagle Inc., HEB LP, Hy Vee Inc., Koninklijke Ahold Delhaize NV, LiDestri Food and Drink, Lidl US LLC, SouthEastern Grocers LLC, Target Corp., The Kroger Co., Trader Joes, TreeHouse Foods Inc., United Natural Foods Inc., and Walmart Inc.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this US Private-label Food and Beverage Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across US
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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