Deep Dive 14 minutes Premium

Deep Dive: Private Label in US Grocery – Five Drivers of Growth

Executive Summary

Private-label goods capture a minority share of the US grocery market, but there are five specific factors that could boost sales of these products:

  • Rising food-price inflation may prompt American shoppers to trade down from branded grocery products.
  • Expansion of grocery discounters Aldi and Lidl in the US could fuel competition in private label.
  • Amazon’s acquisition of Whole Foods Market could jumpstart Amazon’s grocery private-label offering.
  • Retailers could capitalize on heightened consumer demand for more fresh, organic and natural foods.
  • Private labels could capture growth in the meal-kit market. Kroger and Albertsons are two grocery retailers that are already tapping this category.

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