Private-label brands are emerging as a significant growth driver in the consumer packaged goods (CPG) and fast-moving consumer goods (FMCG) sectors, according to two new reports released by Chicago-based Circana LLC on Tuesday. The reports highlight the increasing role of private labels in retail strategies, with U.S. private-label sales reaching $330 billion, accounting for 24% of unit share and 23% of dollar share in the market.
The first report, Category Transformation or Simply Competition: A Global Private Label Perspective, examines private-label trends across the European Union, Australia and the U.S. The second report, Private Labels in the U.S.: Meeting Consumers Where They Are, focuses on the U.S. market, where private-label brands are gaining traction, particularly in the food and beverage sector.
In the U.S., private-label products now hold a 24% value share in food and beverage categories. Growth is evident across various retail channels, with club stores driving nearly half of all private brand growth as consumers seek cost-effective options.
Key U.S. trends
National grocery chains are outpacing regional players in private-label growth, with club channels serving as a primary driver
Retailers are focusing on innovation in areas such as sustainable sourcing, wellness-oriented products and premium offerings. Notable growth has been observed in indulgent snacking and beverages
Consumer trust in private labels is increasing, with many shoppers viewing store brands as comparable to name brands in quality. This perception is particularly strong in categories like food, beverages and household goods
Younger consumers, especially Generation Z, are fueling demand for private labels, which are increasingly seen as high-quality alternatives to traditional brands
The reports also emphasize the role of sustainability and wellness in shaping private-label strategies. Retailers are expanding their product lines to include environmentally friendly and health-focused options, which resonate with private-label loyalists.
Global insights
Globally, private labels are performing strongly, particularly in the European Union, where they hold a 50% unit share. Countries such as Spain and France are seeing notable growth. Retailers worldwide are investing in product innovation, clean ingredients and sustainable sourcing to build brand equity.
Outlook for private labels
Circana projects a positive but more balanced outlook for private-label growth through 2026. Sally Lyons Wyatt, global executive vice president and chief advisor at Circana, noted that while unit share growth is expected to continue, the pace may slow as private labels transition from a rapid growth phase to a more stable trajectory. She highlighted key factors driving growth, including financial pressures on households, improved product quality and strong adoption by younger consumers.
“The competitive landscape is intensifying,” Wyatt said. “Name brands are stepping up innovation, sharpening pricing and amplifying their social and digital engagement. These dynamics will shape the trajectory of private-label growth in the coming years.”
Lauren Hazenfield, an industry advisor at Circana, emphasized the importance of aligning private-label strategies with evolving consumer preferences. “Building authentic, deeper consumer connections, especially through wellness, sustainability and meaningful experiences, is essential for retailers looking to create long-lasting trust and loyalty,” she said.
As private labels mature, manufacturers and retailers are increasingly relying on advanced market data to adapt to shifting consumer needs and maintain a competitive edge.
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