While smaller format grocers lead in private label market share, Walmart leads in household penetration with four of the top five private label brands owned by the company, according to the findings of a study by market researcher Numerator.
“The days of treating private label products as untrackable are over,” said Eric Belcher, CEO of Numerator, in a statement. “With market share now approaching 50% in some major categories, CPG manufacturers need visibility into the brand-level performance of private labels today more than ever before. Numerator’s retailer agnostic data uniquely provides the speed and transparency brands need to navigate today’s dynamic market.”
Aldi leads private label product share with 77.5 percent of the company’s sales attributed to store brands, followed by Trader Joe’s at 59.4 percent, Wegmans at 49.4 percent, Costco at 33.5 percent, Sam’s Club at 30 percent, HEB at 26.9 percent, Walmart at 23.3 percent, Kroger at 22.1 percent, Meijer at 15.8 percent, and Hy-Vee at 15.2 percent.
In terms of growth, Aldi, Target, and Amazon are leaders. All three experienced large-scale household penetration growth between Q2 2021 and Q2 2022: Aldi grew by 2.3 percentage points, Target by 2.2 points, and Amazon Basics by 1.7 points.
In the grocery sector, private labels currently account for 17.4 percent of sales; within the club channel, this share is almost double at 32.1 percent.
Among low-income households, the share of private label grocery items is slightly less than that of middle-income or high-income consumers. Data indicates that the perception of private labels as being for lower-income families is a myth. Building upon this insight, the report shows that more middle- and high-income consumers are switching to private labels to save money.
Many consumers cite rising inflation causing price to be a more important factor than brand name when purchasing items. This is the case across all income levels.
Related: Shoppers Increasingly Choose Store Brands; Baking Mixes, Soup Fastest Growing Private Label Categories