Store brands continued to post record sales and share during the first half of 2023, per the Private Label Manufacturers Association.
Store brand dollar sales across all U.S. retail outlets increased 8.2 percent, vs. a gain of 5.1 percent for national brands, according to Circana data from the six-month period ending June 18, compared to the same six-month period in 2022.
In unit sales for the six months, store brands were down 0.5 percent, while national brands fell 3.4 percent. For the month of June, the most recent Circana report finds that while store brand units dropped a slight 0.6 percent, national brands fell 5.1 percent.
As a result, store brand dollar share rose to 18.8 percent for the half-year, while unit share moved up to 20.5 percent, also a new high. Total store brand dollar sales for the first six months of this year were $108 billion and unit sales were 26.4 billion. Totals last year were $100 billion in dollar sales and 26.5 billion in unit sales.
"These numbers may grow as student loan repayments resume and borrowers of all ages lean further into strategies to tighten household budgets, including adding more value-friendly store brand items to their grocery lists,” said Mary Ellen Lynch, principal at Circana.
Among the major departments that Circana tracks for PLMA, the beverage category experienced the largest store brand dollar sales gain over the past 52 weeks, up 19 percent; followed by general food and refrigerated, both ahead 16 percent; then frozen and general merchandise, both up 8 percent.
Related: CPG Brands Create Products Geared to Gen Z; Southeastern Grocers Debuts Private Label Line.
Image: Wegmans