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NEW YORK – The private-label food and beverage market in the U.S. is poised for significant growth, with projections indicating an increase of $52.2 billion from 2025 to 2029, according to a new report by Technavio. The market is expected to expand at a compound annual growth rate (CAGR) of 7.1% during the forecast period.
Technavio’s latest study highlights the increasing role of artificial intelligence in reshaping the private-label food and beverage sector. AI-powered analytics are enabling retailers to optimize supply chains, enhance product quality, and tailor offerings to meet evolving consumer demands. As the market continues to grow, major vendors are leveraging AI to improve operational efficiencies and consumer engagement.
The private-label food and beverage industry remains fragmented, with key players like Albertsons Companies Inc., Amazon.com Inc., Costco Wholesale Corp., Dollar General Corp., Kroger Co., Trader Joe’s, Walmart Inc., and others competing for market share. Vendors are increasingly forming strategic partnerships with industrial and commercial companies to strengthen their positions.
Private-label brands are gaining traction due to their affordability, high quality, and alignment with consumer preferences for sustainable and organic products, Technavio says. Retailers like ALDI and Kroger are expanding their premium offerings under brands like Specially Selected and Simple Truth, catering to health-conscious and budget-conscious shoppers alike.
Several factors are driving the market’s expansion, including:
- Local production and dustainability: AI-driven supply chain management is enabling retailers to localize production, reducing CO2 emissions and supporting sustainability goals.
- Health-conscious consumers: The growing demand for organic, gluten-free, and non-GMO products is fueling private-label innovations.
- E-commerce growth: Online storefronts and AI-powered recommendation engines are reshaping how consumers discover and purchase private-label products.
However, according to Technavio, challenges such as supply chain disruptions, inflation, and brand perception issues continue to impact growth.
