Circana, LLC, an advisor on the complexity of consumer behavior, released two new reports highlighting the continued global momentum of retailers' private label products. Initially driven by cost-conscious shoppers, private labels have evolved into sought-after options as consumers increasingly recognize the quality and variety retailers offer.

Circana’s global research, From Growth to Transformation: A Global Private Label Perspective, explores regional approaches to private brands across the European Union, Australia, and the United States, while the second report, From Growth to Transformation: The US Private Label Story, provides a deeper analysis of private label trends shaping the US market.

The global findings reveal that private labels are becoming increasingly competitive in the CPG market, with retailers building brand equity through investments in innovation, sustainability, differentiation, and premiumization. These actions have pushed private labels beyond a focus on price. Private labels are well-established in the European Union, holding 39% value share and 47% unit share with strong growth continuing in Spain and France. Relative to other global markets, US private label share is emerging (22% value, 24% unit share), but is the fastest-growing in dollar sales. Even as inflation has eased, private labels continue to grow share.

Private labels continue to gain traction in the US, with CPG unit share increasing in 2024. Inflation, which initially fueled private label growth in 2022, remains a key driver as consumers seek value without compromising quality. Retail food and beverage leads private label expansion, with dollar share up in 2024. Private label sales are increasing in both mature categories, such as meat and bakery, and emerging spaces, including candy and snacks. 

Private label’s momentum is being driven by consumers increasingly shifting their shopping to value-driven channels, including mass, club, and e-commerce, and limited assortment retailers. Adoption is widespread across all consumer groups, with younger shoppers particularly eager to explore new products from their preferred retailers.