Enjoy complimentary customisation on priority with our Enterprise License!
The private label food and beverages market is estimated to grow at a CAGR of 6.39% between 2022 and 2027. The size of the market is forecast to increase by USD 281.15 billion. The growth of the market depends on several factors, including the increasing dollar value share of private label brands, premiumization of private label food and beverage products, and the private label vendors expansion of geographic presence and product line extension.
This report extensively covers market segmentation by product (food and beverages), distribution channel (offline and online), and geography (APAC, North America, Europe, Middle East, and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, Download the Report Sample
The increasing dollar value share of private label brands is notably driving the private label food and beverages market growth, although factors such as low penetration of private label food and beverage vendors may impede the market growth. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a decrease in demand for the market during the COVID-19 pandemic, a holistic analysis of drivers will help companies refine marketing strategies to gain a competitive advantage.
Key Private Label Food and Beverages Market Driver
The increasing dollar value share of private-label brands is notably driving the private label food and beverages market growth. The dollar value share of private label brands, including food and beverage and beauty and personal care products in the US retail market, increased from 17.5% in 2013 to 18% in 2018. A major share of this growth is contributed by private-label food and beverage products. Competitive pricing and easy availability are the major factors driving the sales of private-label food and beverage products.
Private label brands are reaping more benefits in terms of the dollar value of sales due to factors such as increasing premium and speciality product offerings. Consumers are more inclined to opt for convenient shopping rather than searching for a national brand that is available in a distant store. This shift in consumer buying patterns is expected to continue during the forecast period, thereby fueling the dollar value of sales of private-label food and beverage products.
Key Private Label Food and Beverages Market Trend
The increasing online presence of private-label brands is a key trend in the private label food and beverages market. The rise in the penetration of smartphones, coupled with the increased accessibility to the Internet, is promoting the sales of private-label food and beverage products online. Constant connectivity helps shoppers research and buy private-label food and beverage products. Thus, time-pressed urban consumers are readily purchasing private-label food and beverage products via e-commerce platforms.
Several vendors offer their private-label products on e-commerce portals. For instance, Archer Farms offers its food and beverage products through Amazon. Similarly, Costco Wholesale Corp. offers a range of Kirkland Signature products through Amazon. Vendors are also expected to offer their private label brands through online channels to extend their product reach across the US during the forecast period. This, in turn, will support market growth.
Key Private Label Food and Beverages Market Challenge
The low penetration of private-label food and beverage vendors may impede market growth. Retailers and manufacturers compete for the same shelf space. However, private label vendors have a lower penetration rate in developing nations than in other countries such as Switzerland, Spain, and the UK. Moreover, factors such as brand consciousness, loyalty, and reputation are making it easy for national brands to capture a considerable amount of share in the global food and beverages market.
In countries such as Switzerland, Spain, and the UK, private-label brands had a retail value share of 40%-50% in 2018, while in developing nations, the retail value sales of private-label brands accounted for only 18% of the overall market share in 2018. The sales of private-label brands have been inconsistent over the years. The value sales of private-label brands always had a strong correlation with the economic conditions in a country. The market share generally increases when the economy is weak and decreases with the growth in the economy. Therefore, the low penetration of private-label brands will hinder the growth of the market during the forecast period.
Key Private Label Food and Beverages Market Customer Landscape
Our analysis of the lifecycle of the market indicates a movement from the innovator’s stage to the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries including the US, China, India, Germany, and France. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Private Label Food and Beverages Market Customer Landscape
Vendors 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
Aldi Stores Ltd. - The company offers private-label food and beverages under the Dominion brand.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Qualitative and quantitative analysis of vendors has 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the 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 speciality foods (gluten-free foods, non-genetically modified organism (non-GMO) foods, and organic foods). Vendors in the market are focusing on the premiumization of private-label foods. Furthermore, private-label food vendors are focusing on extending their product offerings under the speciality category.
Get a glance at the market contribution of various segments Request a PDF Sample
The food segment showed a gradual increase in market share with USD 365.08 billion in 2017 and continued to grow by 2021. In the US, since people are inclined toward organic food products and moving away from conventional food, the demand for private-label organic food products among budget-conscious customers is likely to increase during the forecast period. Moreover, the widespread presence of private-label vendors across the US is making the shopping experience more convenient for consumers. Hence, the private-label food segment is expected to witness an accelerating year-over-year growth rate during the forecast period. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segments, along with the reasons for growth from 2017 to 2027.
The growth of this segment is primarily attributed to the increasing adoption of private-label food and beverages, which is driven by an increase in the global demand for private-label food and beverages
For more insights on the market share of various regions Request PDF Sample now!
North America is projected to contribute 33% of market growth by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The US and Canada are the two most important markets for private-label food and beverage products. The average spending of consumers on private-label food and beverages in these two countries is higher than the global average. The increasing dollar value share of private-label brands and growing emphasis on the premiumization of private-label food and beverages are the major factors driving the market in the US. Product premiumization and new speciality product offerings are the major factors driving the private-label food segment.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The outbreak of COVID-19 in 2020 moderately impacted the growth of the private label food and beverages market in the US. Stringent lockdowns imposed in numerous states due to the outbreak led to a slowdown in transport, trade, and economic activities globally. Lockdowns imposed in the country brought all commercial activities to a halt, which resulted in the disruption of supply chains in the food and beverage industry, leading to a supply-demand imbalance. Travel restrictions were imposed to contain the spread of the disease in 2020. This impacted the sales of private-label food and beverages through offline channels. However, owing to the initiation of large-scale vaccination drives in the first half of 2021, the demand for private-label food and beverages increased through online channels as an increasing number of people considered online channels a safer way of getting goods. Such factors are expected to drive the growth of the regional market in focus during the forecast period.
APAC Private Label Food and Beverages market - The market share will grow steadily at a CAGR of almost 11% by 2021.
Our report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by product, distribution channel, and region.
Technavio categorizes the global private-label food and beverages market as a part of the global packaged foods and meats market under the global food products segment of the global food, beverage, and tobacco market. The global packaged foods and meats products market covers manufacturers or food processing vendors that are involved in food processing to eliminate microorganisms and extend shelf life. Technavio calculates the global packaged foods and meat market size based on the combined revenue generated by the vendors operating in the market. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
|
Private Label Food and Beverages Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
161 |
|
Base year |
2022 |
|
Historical year |
2017-2021 |
|
Forecast period |
2023-2027 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 6.39% |
|
Market growth 2023-2027 |
USD 281.15 billion |
|
Market structure |
Fragmented |
|
YoY growth (%) |
5.35 |
|
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
|
Performing market contribution |
North America at 33% |
|
Key consumer countries |
US, China, India, Germany, and France |
|
Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
|
Key companies profiled |
Aldi Stores Ltd., Amazon.com Inc., Carrefour SA, Costco Wholesale Corp., Dollar General Corp., Edeka Zentrale Stiftung, Giant Eagle Inc., Giant of Maryland LLC, HEB LP, Hy Vee Inc., Koninklijke DSM NV, Lidl US LLC, Sobeys Inc., Southeastern Grocers LLC, Target Corp., The Kroger Co., Trader Joes Co., United Natural Foods Inc., Walmart Inc., and Wegmans Food Markets 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, and 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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Certified ISO 9001 : 2015
We are ISO 9001:2015 recognized that ensures quality services and product delivery to our clients.
We are GDPR and CCPA compliant! Your transaction & personal information is protected from unauthorized use.
Get lifetime access to our
Technavio Insights
Customized Report as per your Business Needs
Let us help you make report more suited to your requirements.
Get the report (PDF) sent to your email within minutes.
