Global Private Label Food and Beverage Market Overview
Private Label Food and Beverage Market was estimated at 212.01 (USD Billion) in 2022. It is expected to grow from 222.15 (USD Billion) in 2023 to 338.0 (USD Billion) by 2032. The Private Label Food and Beverage Industry CAGR (growth rate) is expected to be around 4.78% during the forecast period (2024 - 2032).
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Private Label Food and Beverage Market Trends Highlighted
The dynamics of the private label food and beverage market are being shaped by a number of new and developing trends. One notable trend is the increasing inclination of value-conscious shoppers to look for less expensive substitutes for name-brand goods.
Private-label companies are growing because internet grocery shopping has increased accessibility to them. Additionally, customers are favoring private-label items that satisfy their nutritional and ethical standards due to an increase in demand for sustainability and transparency.
The expansion of the food and beverage industry in emerging nations, rising consumer knowledge and acceptance of private-label brands, and the expanding number of discount stores and e-commerce platforms that offer private-label items are all significant market drivers.
Growth opportunities include taking advantage of the trend toward more functional and healthful food options, extending into new markets, and using data analytics to better understand customer preferences.
In response to consumer demand for more specialized and higher-quality options, premium private-label items have emerged in recent market trends. Innovation and technology are also essential for improving the caliber and range of private-label products.
Consequently, traditional name-brand items are losing market share to Private Label Food and Beverage brands, which are growing more and more competitive.
Private Label Food and Beverage Market Drivers
Rising Demand for Value-for-Money Products
As consumers become more price-conscious, they are increasingly turning to private-label food and Beverage products. These products offer comparable quality to national brands but at a lower cost, making them an attractive option for budget-minded shoppers.
The rising demand for value-for-money products is a major driver of growth in the Private Label Food and Beverage Market. This trend is expected to continue in the coming years as consumers continue to seek out affordable and high-quality products.
Growing Popularity of E-commerce
The growing popularity of e-commerce is another major driver of growth in the Private Label Food and Beverage Market. Online retailers are increasingly offering a wide variety of private-label products, making them more accessible to consumers.
In addition, e-commerce platforms allow consumers to easily compare prices and read reviews, which makes it easier for them to find the best deals on private-label products.
Expansion of Private Label Offerings
In recent years, there has been a significant expansion of private label offerings. Retailers are now offering private-label products in a wider variety of categories, including fresh produce, meat, dairy, and prepared foods.
This expansion is being driven by the growing demand for value-for-money products, as well as the increasing sophistication of private label manufacturers.
Private Label Food and Beverage Market Segment Insights
Private Label Food and Beverage Market Type Insights
The Private Label Food and Beverage Market is segmented by Type into Food and Beverage. The Food segment accounted for a larger revenue share in 2023 and is projected to maintain its dominance throughout the forecast period.
The growth of this segment can be attributed to the increasing demand for private label food products from consumers who are looking for affordable and high-quality alternatives to national brands. The Beverage segment is also expected to witness significant growth during the forecast period.
This growth can be attributed to the increasing popularity of private label beverages, such as energy drinks, sports drinks, and bottled water.
These beverages are often perceived as being healthier and more affordable than national brands, which is driving their popularity among consumers. Overall, the Private Label Food and Beverage Market is expected to witness healthy growth in the coming years.
This growth will be driven by the increasing demand for affordable and high-quality private-label products from consumers. The market is also expected to benefit from the growing popularity of e-commerce, which is making it easier for consumers to purchase private-label products.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Private Label Food and Beverage Market Distribution Channel Insights
The distribution channel segment plays a crucial role in the success of the Private Label Food and Beverage Market. Supermarkets and hypermarkets emerged as the dominant distribution channel in 2023, accounting for over 40% of the overall revenue.
Convenience stores witnessed steady growth due to their accessibility and timesaving offerings. Online retail continues to gain traction, driven by the increasing penetration of e-commerce and the convenience it offers. Specialty stores cater to specific consumer niches and are expected to maintain a steady market share.
Discount stores offer value-conscious consumers a wider range of private-label products at competitive prices. These insights are crucial for market participants to tailor their distribution strategies and maximize their market share in the Private Label Food and Beverage Market.
Private Label Food and Beverage Market Packaging Type Insights
The Private Label Food and Beverage Market is segmented into Plastic, Metal, Glass, Paper and Cardboard, and Flexible Packaging based on Packaging Type. The Plastic segment held the largest market share in 2023 and is expected to continue its dominance throughout the forecast period.
The growth of this segment can be attributed to the increasing demand for lightweight and cost-effective packaging solutions. Plastic Packaging is also preferred by manufacturers due to its ability to extend product shelf life and reduce spoilage. The Metal segment is expected to witness significant growth over the forecast period, owing to the rising demand for canned food and beverages.
Metal packaging offers excellent protection against external factors, making it suitable for long-term storage and transportation. The Glass segment is also expected to grow steadily, driven by the increasing popularity of premium and specialty food and beverage products.
Glass packaging is perceived as being more environmentally friendly and aesthetically appealing, making it a preferred choice for high-end products. The Paper and Cardboard segment is expected to experience moderate growth, primarily due to its use in Packaging for dry food products such as cereals, pasta, and snacks.
Flexible Packaging is gaining popularity due to its lightweight, space-saving, and cost-effective nature. It is widely used for packaging snacks, confectionery, and other perishable food products.
Private Label Food and Beverage Market Application Insights
The Private Label Food and Beverage Market is segmented into various applications, including dairy products, meat and poultry, fruits and vegetables, bakery products, snacks, and confectionery. In 2023, the dairy products segment held the largest market share, accounting for approximately 30% of the market revenue.
The growth of this segment is driven by the increasing demand for private-label dairy products, such as milk, cheese, and yogurt, as consumers seek affordable and high-quality alternatives to national brands.
The meat and poultry segment is projected to experience significant growth over the forecast period, with a CAGR of 5.2%, owing to the rising consumption of private-label meat and poultry products in emerging markets.
Fruits and vegetables, bakery products, and snacks and confectionery segments are also expected to contribute to the overall growth of the Private Label Food and Beverage Market, albeit at a slower pace.
Private Label Food and Beverage Market Price Range Insights
The Price Range segment holds immense significance in the Private Label Food and Beverage Market, shaping the competitive landscape with its diverse offerings. Economy products cater to value-conscious consumers seeking affordable options, contributing to a significant Private Label Food and Beverage Market revenue share.
In 2023, the Economy segment accounted for approximately 42% of the Private Label Food and Beverage Market. Mid-range products offer a balance between price and quality, resonating with a wider consumer base.
This segment is projected to witness steady growth, capturing a substantial Private Label Food and Beverage Market share. Premium products, targeting discerning consumers seeking high-end offerings, command a significant price premium.
The Premium segment is anticipated to exhibit robust market growth, driven by rising disposable income and changing consumer preferences. The Private Label Food and Beverage Market segmentation based on Price Range offers valuable insights into consumer buying patterns and enables businesses to tailor their strategies accordingly to capitalize on specific market opportunities.
Private Label Food and Beverage Market Regional Insights
The Private Label Food and Beverage Market exhibited significant growth in North America, capturing a notable market share in 2023. The regional market is projected to maintain its dominance, driven by rising consumer demand for affordable and convenient food and beverage options.
Europe follows closely, showcasing promising growth prospects attributed to increasing consumer awareness about private label products' value and quality. The APAC region is projected to emerge as a lucrative market fueled by the expanding middle class, rising disposable incomes, and growing retail infrastructure.
South America and MEA are anticipated to contribute steadily to the growth of the Private Label Food and Beverage Market, offering ample opportunities for market expansion.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Private Label Food and Beverage Market Key Players and Competitive Insights
Major players in the Private Label Food and Beverage Market are constantly striving to gain a competitive edge over their rivals. Leading Private Label Food and Beverage Market players are investing heavily in research and development to bring innovative products to the market.
They are also expanding their distribution networks to reach a wider customer base. The development of the Private Label Food and Beverage Market is being driven by factors such as the increasing demand for affordable and convenient food options.
One of the key competitors in the private-label food and Beverage Market is Kroger Co. The company offers a wide range of private-label products across various categories, including food, beverages, and household items. Kroger's private label brands include Kroger, Private Selection, and Simple Truth.
The company has a strong presence in the United States and is expanding its international reach. Kroger's private-label products are known for their quality and affordability, which has helped the company gain a loyal customer base.
Another major competitor in the Private Label Food and Beverage Market is The Coca-Cola Company. The company offers a variety of private-label beverages, including soft drinks, juices, and water. Coca-Cola's private label brands include Dasani, Minute Maid, and Powerade.
The company has a reach, and its products are sold in over 200 countries. Coca-Cola's private label beverages are known for their taste and quality, which has helped the company to build a strong brand reputation.
Key Companies in the Private Label Food and Beverage Market Include
- Target
- Costco
- Amazon
- Kroger
- Schwarz Group
- Walmart
- Ahold Delhaize
- Carrefour
- Kraft Heinz
- Associated British Foods
- Sysco
- Lidl
- United Natural Foods
- Aldi
- Tesco
Private Label Food and Beverage Market Developments
The market growth can be attributed to various factors, including the increasing popularity of private-label brands among consumers due to their perceived value and affordability, the expansion of retail channels offering private-label products, and the growing demand for convenient and affordable food and beverage options.
Several recent news developments and current affairs are shaping the Private Label Food and Beverage Market. For instance, in 2023, Walmart announced plans to launch a new line of private-label products, including organic and plant-based options, to meet the growing demand for healthier and sustainable products.
Additionally, Amazon has been expanding its private label offerings, particularly in the grocery and household goods categories, to compete with traditional retailers and capture a larger market share.
Private Label Food and Beverage Market Segmentation Insights
- Private Label Food and Beverage Market Type Outlook
- Private Label Food and Beverage Market Distribution Channel Outlook
- Supermarkets and Hypermarkets
- Convenience Stores
- Online Retail
- Specialty Stores
- Discount Stores
- Private Label Food and Beverage Market Packaging Type Outlook
- Plastic
- Metal
- Glass
- Paper and Cardboard
- Flexible Packaging
- Private Label Food and Beverage Market Application Outlook
- Dairy Products
- Meat and Poultry
- Fruits and Vegetables
- Bakery Products
- Snacks and Confectionery
- Private Label Food and Beverage Market Price Range Outlook
- Economy
- Mid-Range
- Premium
- Private Label Food and Beverage Market Regional Outlook
- North America
- Europe
- South America
- Asia-Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
212.01(USD Billion) |
| Market Size 2023 |
222.15(USD Billion) |
| Market Size 2032 |
338.0(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
4.78% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Target, Costco, Amazon, Kroger, Schwarz Group, Walmart, Ahold Delhaize, Carrefour, Kraft Heinz, Associated British Foods, Sysco, Lidl, United Natural Foods, Aldi, Tesco |
| Segments Covered |
Type, Distribution Channel, Packaging Type, Application, Price Range, Regional |
| Key Market Opportunities |
1 Expanding e-commerce platforms 2 Growing demand for healthier options 3 Increasing consumer preference for personalized products 4 Rising disposable income in emerging markets 5 Demand for sustainable Packaging |
| Key Market Dynamics |
Growing consumer preference for quality, affordable products Increasing demand for convenience and timesaving solutions Rise of online grocery shopping Expansion of private label offerings by retailers Focus on health and wellness |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Private Label Food and Beverage market size was valued at USD 222.15 billion in 2023 and is projected to reach USD 338.0 billion by 2032, exhibiting a CAGR of 4.78% during the forecast period.
North America and Europe are the dominant regions in the private-label food and Beverage market, accounting for a significant share of the market. Asia-Pacific is expected to witness the highest growth rate during the forecast period due to rising disposable incomes, growing population, and increasing demand for affordable and quality food and beverage products.
Private Label Food and Beverage products find applications across various channels, including supermarkets, hypermarkets, convenience stores, and online retailers. They are primarily used by consumers seeking cost-effective and value-for-money alternatives to national brands.
Major players operating in the Private Label Food and Beverage market include The Kroger Co., Walmart Inc., Costco Wholesale Corporation, Target Corporation, ALDI Einkauf GmbH & Co. oHG, and Schwarz Group. These companies offer a wide range of private-label products across various categories, including groceries, beverages, dairy products, and frozen foods.
The growing popularity of private-label products among cost-conscious consumers, increasing demand for transparency and sustainability, and expanding distribution channels are some of the key trends driving the growth of the private-label food and Beverage market.
The private-label food and Beverage market faces challenges such as intense competition from national brands, maintaining product quality and consistency, and meeting regulatory requirements.
The COVID-19 pandemic has had a significant impact on the Private Label Food and Beverage market. Increased demand for affordable food and beverage options during the pandemic has led to a surge in the sales of private-label products.
Growing demand for healthy and organic food and beverage products, increasing consumer awareness about private-label brands, and expanding e-commerce platforms present key opportunities for growth in the private-label food and Beverage market.
Key strategies adopted by players in the private-label food and Beverage market include product innovation, expansion into new markets, strategic partnerships, and mergers and acquisitions.
The Private Label Food and Beverage market is projected to grow from USD 222.15 billion in 2023 to USD 338.0 billion by 2032, at a CAGR of 4.78%.
