Private-label Food and Beverages Market in the US 2016-2020

This market research report identifies players like Costco, Kroger, Trader Joe's, Walmart, and Wegmans to be the key vendors in the private-label food and beverage market in the US. This research report also presents a detailed segmentation of the market by product category (food and beverages) and distribution channel (supermarkets and hypermarkets, convenience stores, club stores, dollar stores, and other mass retailers, and pharmacy chains).

Overview of the private-label food and beverage market in the US

The private-label food and beverage market in the US is driven by continuous product innovations by manufacturers and the introduction of new products annually. New product launches enable manufacturers to be updated with the latest trends and meet the changing customer requirements and preferences. In the US, millennials are one of the primary target customers for private-label brands. Most millennials are willing to purchase private-label food and beverage products and believe these brands to be more innovative.  Several large retailers are also increasing their private-label brand offerings owing to the attractiveness of the market and high sales coming from private brands.  The growing awareness about private labels has built brand loyalty for the vendors, who are promoting their private-label products as alternatives to national brands. Private labels in the US are also introducing products to create differentiation. For instance, H-E-B has recently launched a new private-label line that excludes more than 200 synthetic ingredients including high fructose corn syrup and artificial flavors. With the growing demand for organic products, H-E-B is taking the health quotient into consideration while keeping the pricing of these products low. Technavio’s market research analyst predicts the private-label food and beverage market in the US to grow at a CAGR of almost 3% by 2020.

Several private-label store brands have been focusing on packaging to compete with store brands as innovation in packaging plays a key part in building brand image. Retailers are coming up with unique packaging designs, incorporating more colors and personality to their products. They are extensively using artistic photographs and vibrant colors to make the product stand out on the shelf. Several private brands have also been redesigning their product lines for a brand makeover and customization options.

Competitive landscape and key vendors

Vendors in the private-label food and beverages market in the US compete based on key parameters like price, quality, innovation, service, reputation, and promotion. The presence of various small and large vendors makes this market highly fragmented. Also, the prevalence of intense competition has led to an increase in the number of M&A, where the key players are acquiring small suppliers. Costco Wholesale, Kroger, Safeway, Trader Joe's, and Wegmans are some of the leading vendors in the market. Several private label brands in the US are focusing on Innovative and eco-friendly packaging to gain consumer confidence and to compete with national brands. They are also focusing on brand loyalty and product exclusivity.

Leading vendors in the market are -

• Costco
• Kroger
• Trader Joe's
• Walmart
• Wegmans

Other prominent vendors in the private-label food and beverage market in the US include A&P, Ahold USA, ALDI, CVS Pharmacy, Delhaize Group, Dollar General, Family Dollar, Giant Eagle, H-E-B, Hy-Vee, Loblaw Companies, Meijer, Metro, Publix, Rite Aid Pharmacy, SuperValu, Target, Wakefern, Walgreens, Whole Foods Market, and Winn Dixie.

Segmentation by product category and analysis of the private-label food and beverage market in the US

• Food
• Beverages

The private-label food market is expected to grow at a significant rate during the forecast period. Millennials are the major target shoppers and are willing to experiment and switch between brands. About 40% of millennials in the US consider private-label products to be more innovative than branded products. Moreover, the private label brands are coming up with premium and indulgence, everyday value, health and wellness, and organic food products, that are available at low prices while are of high value and quality. Dairy products such as milk and cheese are the most consumed products among private-label foods.

Segmentation by distribution channel and analysis of the private-label food and beverage market in the US

• Supermarkets and hypermarkets
• Convenience stores, club stores, dollar stores, and other mass retailers
• Pharmacy chains

Supermarkets and hypermarkets dominated the US market and accounted for the highest number of sales of the private-label food and beverage products. These stores produce tested and examined private-label food and beverage products that are safe for consumption. Manufacturers of private-label products focus on store specifications like logos and locations while packaging and labeling their products. Product ingredients, information on product labels, shelf presence, convenient packaging, and ascertaining product safety for consumption are the major factors that will further contribute to the growth of this retail channel in the coming years.

 Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the private-label food and beverage market in the US?
• What are the key market trends impacting the growth of the private-label food and beverage market in the US?
• What are the challenges to market growth?
• Who are the key vendors in the private-label food and beverage market in the US?
• What are the market opportunities and threats faced by the vendors in the private-label food and beverage market in the US?
• Trending factors influencing the market shares the US.
• What are the key outcomes of the five forces analysis of the private-label food and beverage market in the US?

Technavio also offers customization on reports based on specific client requirement.

Related reports:

• Food Retail Market in Saudi Arabia 2016-2020
• Organic Food and Beverages Market in Europe 2015-2019