Table of Contents
CHICAGO – Circana, a leading advisor on consumer behavior, has released two comprehensive reports that underscore the continued expansion and strategic evolution of private label products across global markets. These reports, From Growth to Transformation: A Global Private Label Perspective and From Growth to Transformation: The U.S. Private Label Story, provide in-depth analyses of private label trends, investments, and consumer shifts shaping the future of the consumer packaged goods (CPG) industry.
Click here for a presentation on the U.S. CPG Private Label Story
What began as a cost-saving alternative has now emerged as a competitive force, with private labels gaining consumer trust through quality, innovation, and differentiation. Circana’s global research reveals that retailers heavily invest in product innovation, sustainability, and premiumization—key strategies that solidify private labels as viable competitors to national brands.
In Europe, private labels are well-established, commanding a 39% value share and 47% unit share, with strong momentum in Spain and France. Meanwhile, U.S. private labels, though still growing, are making significant strides with a 22% value share and 24% unit share. Notably, U.S. private labels are outpacing global markets in dollar sales growth, signaling an era of transformation beyond price-driven demand.
Thought leaders from Circana led by Sally Lyons Wyatt, Global Executive Vice President and Chief Advisor, shared information about how Private Label sales have grown internationally at a recent webinar.
In the United States, private label products continue to gain ground in the CPG sector. Inflation initially drove consumers to private labels in 2022 and remains a key factor influencing purchasing decisions. However, affordability is no longer the sole appeal—shoppers are increasingly drawn to private brands for their expanding variety and perceived value.
Retail food and beverage is leading private label growth, with gains across both established categories such as meat and bakery and emerging segments like candy and snacks. The shift toward value-driven shopping channels—including mass retailers, club stores, e-commerce, and limited-assortment retailers—has accelerated private label adoption, particularly among younger consumers eager to explore new options from their favorite retailers.
This Circana webinar examined U.S. consumers' shifting views on private labels and how customer-first marketing affects their sales.
According to Sally Lyons Wyatt, Circana’s Global Executive Vice President and Chief Advisor, the trajectory of private label growth is poised for strategic shifts. “While value channels have recently driven private label gains, expect more grocers—both large and mid-sized—to invest more aggressively, making private labels a core growth strategy,” said Wyatt. “Retailers will continue to expand their private brand portfolios, balancing margin-accretive premium offerings with entry price-point products to attract a diverse consumer base.”
Retailers are also expected to refine their pricing and promotional strategies, innovation, localization, regionalization, and strategic partnerships. These efforts will ensure that private labels remain strong competitors in the evolving retail landscape.
Circana’s research underscores that private labels are no longer just an alternative to national brands but a strategic priority for retailers worldwide. As consumer expectations evolve and economic pressures persist, private labels will continue to expand their footprint, offering high-quality, innovative, and differentiated products that rival traditional branded goods.
