The Future of U.S. Store Brands

A look at how European retailers are driving private-label growth provides valuable clues to what could be in store for the American market.

Food Technology Magazine | Article

LISA RIDER

In the past 20 years, store brands—otherwise known as private labels—have come a long way in the United States. When store brands were in their infancy in the 1980s, product quality was inconsistent and packaging was either generic looking or designed to mimic the leaders in a given product category. It’s a much different story today.

To meet consumers’ demands, more European store brands highlight organics, local sources, fair-trade, sustainable practices, and/or ethics in their packaging and promotions.Over the past several years, retailers have invested in quality improvement, product and packaging development, and marketing their store brands, making them one of…


Figure 1. U.S. store brands grew their unit share and dollar share in 2009 to 21.8% and 17%, respectively.

Figure 2. In 2008, for the first time in many years, retailers dropped more products from their shelves than they added.

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