Specialty food retailers, such as Trader Joe's and Whole Foods, have
capitalized on renewed consumer interest in and acceptance of private label
foods and enjoyed greater growth in store brand product sales between 2005
and 2009 than traditional supermarkets, according to "Private Label Food
and Beverage in the U.S." by market research publisher Packaged Facts.
Packaged Facts estimates private-label food and beverage dollar sales
totaled $87 billion in 2009, to account for 17% of total food and beverage
retail sales in the United States. Dollar sales rose 6% over the 2008 level
of $82 billion, driven primarily by a 7% increase in the food market.
Private-label beverage sales rose less than 1%. Private label's penetration
rate was at 14% of total food and beverage retail sales in the beginning of
the 2005-2009 period, but began to rise in 2007 as the economy showed signs
of slowing. Hitting 15% in 2007 set the stage for a jump in 2008 as the
penetration rate grew to 16%.
The report found that traditional supermarkets and grocery stores are
losing market share to alternative stores. Growth among traditional food
and beverage retailers was modest at a compound annual growth rate (CAGR)
of 4% between 2005 and 2009. Perhaps most notable was the growth in
specialty food stores Whole Foods and Trader Joe's, which grew at a CAGR of
14% during the 2005-2009 period. Supercenter stores such as Walmart and
Target also witnessed high growth at a CAGR of 9%. Club stores, such as
BJ's Wholesale, Costco, and Sam's Club grew slightly better than the mean
at a CAGR of 6%. At the low end, discount supermarkets, including
SuperValu, Aldi, and dollar store Dollar General saw food and beverage
sales actually decline in 2009 from the level seen in 2008. Still the group
managed to eke out a small five-year gain growing at a CAGR of 2%.
"Private-label food and beverage have eclipsed their ignoble past of no
name and generic products with the development of new flavor varieties,
enhanced product packaging and different pack sizes, and the emergence of
premium lines," says Don Montuori, publisher of Packaged Facts. "Plus
private labels entered into new territory where the additional power of the
retailer name and its inherent benefits are aiding private labels to emerge
as brand name. Store reputation alone may be the driving force in the
success of chains such as Trader Joe's and Whole Food Markets in attracting
more affluent consumers to the category."
"Private Label Food & Beverage in the U.S.," from Packaged Facts, analyzes
the U.S. market for foods and beverages sold under the proprietary labels
of retailers, referred to in the trade as private-label or store-brand
products. The primary focus is on the mass-market products sold through
supermarkets, big box, warehouse clubs, and mass merchandisers, but the
report also examines trends affecting other food and beverage retailers,
including convenience stores, drugstores, health and natural food stores.
Included are estimates of total dollar sales, unit sales and average prices
per unit for the 2005-2009 period along with forecasts for growth through
2014. For further information, please visit:
http://www.packagedfacts.com/Private-Label-Food-2554250/ .
Packaged Facts, a division of MarketResearch.com, publishes market
intelligence on a wide range of consumer market topics, including consumer
goods and retailing, foods and beverages, demographics, pet products and
services, and financial products.
capitalized on renewed consumer interest in and acceptance of private label
foods and enjoyed greater growth in store brand product sales between 2005
and 2009 than traditional supermarkets, according to "Private Label Food
and Beverage in the U.S." by market research publisher Packaged Facts.
Packaged Facts estimates private-label food and beverage dollar sales
totaled $87 billion in 2009, to account for 17% of total food and beverage
retail sales in the United States. Dollar sales rose 6% over the 2008 level
of $82 billion, driven primarily by a 7% increase in the food market.
Private-label beverage sales rose less than 1%. Private label's penetration
rate was at 14% of total food and beverage retail sales in the beginning of
the 2005-2009 period, but began to rise in 2007 as the economy showed signs
of slowing. Hitting 15% in 2007 set the stage for a jump in 2008 as the
penetration rate grew to 16%.
The report found that traditional supermarkets and grocery stores are
losing market share to alternative stores. Growth among traditional food
and beverage retailers was modest at a compound annual growth rate (CAGR)
of 4% between 2005 and 2009. Perhaps most notable was the growth in
specialty food stores Whole Foods and Trader Joe's, which grew at a CAGR of
14% during the 2005-2009 period. Supercenter stores such as Walmart and
Target also witnessed high growth at a CAGR of 9%. Club stores, such as
BJ's Wholesale, Costco, and Sam's Club grew slightly better than the mean
at a CAGR of 6%. At the low end, discount supermarkets, including
SuperValu, Aldi, and dollar store Dollar General saw food and beverage
sales actually decline in 2009 from the level seen in 2008. Still the group
managed to eke out a small five-year gain growing at a CAGR of 2%.
"Private-label food and beverage have eclipsed their ignoble past of no
name and generic products with the development of new flavor varieties,
enhanced product packaging and different pack sizes, and the emergence of
premium lines," says Don Montuori, publisher of Packaged Facts. "Plus
private labels entered into new territory where the additional power of the
retailer name and its inherent benefits are aiding private labels to emerge
as brand name. Store reputation alone may be the driving force in the
success of chains such as Trader Joe's and Whole Food Markets in attracting
more affluent consumers to the category."
"Private Label Food & Beverage in the U.S.," from Packaged Facts, analyzes
the U.S. market for foods and beverages sold under the proprietary labels
of retailers, referred to in the trade as private-label or store-brand
products. The primary focus is on the mass-market products sold through
supermarkets, big box, warehouse clubs, and mass merchandisers, but the
report also examines trends affecting other food and beverage retailers,
including convenience stores, drugstores, health and natural food stores.
Included are estimates of total dollar sales, unit sales and average prices
per unit for the 2005-2009 period along with forecasts for growth through
2014. For further information, please visit:
http://www.packagedfacts.com/Private-Label-Food-2554250/ .
Packaged Facts, a division of MarketResearch.com, publishes market
intelligence on a wide range of consumer market topics, including consumer
goods and retailing, foods and beverages, demographics, pet products and
services, and financial products.
