According to Arizton’s latest research report, the U.S. private label food market is growing at a CAGR of 11.73% during 2024-2030.
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Report Scope:
Market Size (2030): $283.36 Billion
Market Size (2024): $145.63 Billion
CAGR (2023-2029): 11.73%
Historic Year: 2021-2023
Base Year: 2024
Forecast Year: 2025-2030
Market Segmentation: Product, End User, Age Group, and Region
Geographical Analysis: South, West, Midwest, and Northeast
The U.S. private label food market is highly competitive, with numerous players competing for market share and consumer attention. Private label brands often focus on competitive pricing, offering products at lower prices than national brands. Retailers are heavily investing in product quality to bridge the gap with national brands and are introducing innovative offerings to differentiate themselves and cater to a wider consumer base. Effective packaging and marketing strategies are key to building strong brand recognition and increasing customer loyalty. Companies are also expanding their product range and strengthening distribution networks to reach more consumers across various channels.
The U.S. Private Label Food Market Trends
Premiumization is becoming a key trend in the U.S. private label food market, fueled by several factors, including a growing demand for high-quality and specialty products, changing consumer perceptions, profit margins for retailers, and increased competition with national brands. As consumers seek unique and indulgent food experiences, retailers are focusing on offering premium private label options that match or exceed the quality of national brands.
In 2023, U.S. consumers spent an average of 11.2% of their disposable personal incomes on food, according to the U.S. Department of Agriculture (USDA). With higher disposable incomes, many consumers are willing to pay more for premium private label foods that feature high-quality ingredients, rival restaurant-quality offerings, and unique flavors. Retailers are investing more to close the gap between private label and national brands, particularly in terms of quality and taste.
Consumers are increasingly recognizing that private label products can offer comparable or superior quality to national brands. Many are willing to pay a premium for these offerings, which include artisanal, specialty, and gourmet products that cater to the demand for indulgence and unique flavors. Costco’s Kirkland Signature brand is a prime example of a retailer successfully offering premium private label products across various categories.
Additionally, the growing trend toward health-conscious eating is further driving demand for premium private label foods. As more consumers prioritize health, retailers are responding by expanding their premium offerings to meet this demand, positioning premium private label food as a leading market segment in the U.S.
The rising “Better-for-You” trend is shaping the U.S. private label food market, driven by increasing demand for health and wellness products, specific dietary needs, and product innovation. Consumers are seeking clean labels, minimally processed ingredients, and functional benefits. The demand for low-sugar, organic, high-fiber, and allergen-free products is growing, with a focus on sugar-free options and alternative sweeteners. Additionally, the popularity of gluten-free foods is rising, with the gluten-free food market valued at $2.62 billion in 2023. Retailers like ALDI are expanding their private label offerings to cater to these health-conscious consumer preferences.
The South Region: A Key Player in U.S. Private Label Food Market Expansion
The U.S. South region is the largest market for private label food. The region also has a high number of single-family homes, which contributes to increased consumer spending on food products. Retailers like Walmart, headquartered in Arkansas, have a strong presence in the South and are expanding their private label offerings, further driving market growth. Other regional retailers such as Publix and H-E-B are heavily investing in their private label brands, gaining strong brand loyalty in the region. States like Florida, North Carolina, Georgia, and Texas are key contributors to private label food sales, benefiting from lower living costs and economic opportunities that attract new residents. With a population of around 130 million, making up 38% of the U.S. population, the South region also experiences a rising demand for convenient, prepared foods as consumers lead busier lifestyles. In 2024, grocery stores in Florida, Georgia, Texas, and North Carolina will account for over 50,000 locations, further supporting the growth of private label food in the region.
Recent Vendor Activities
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Key Vendors
Segmentation & Forecasts
Product
End-User
Age Group
Region
The Arizton Advisory & Intelligence market research report provides valuable market insights for industry stakeholders, investors, researchers, consultants, and business strategists aiming to understand the U.S. private label food market thoroughly. Request for Free Sample to get a glance at the report now: https://www.arizton.com/market-reports/us-private-label-food-market
What Key Findings Will Our Research Analysis Reveal?
How big is the U.S. private label food market?
Which product segment has the largest share in the U.S. private label food market?
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Which region holds the largest share in the U.S. private label food market?
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