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Deep Dives 11 minutes

Private Label To Drive Disruption in CPG

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Coresight Research

Key Points

Private-label products are a major disruptor in the US consumer packaged goods (CPG) category. In this report, we outline the scale of private labels in US CPG, discuss why retailers are moving into private labels and how CPG brands can respond to the challenge.

  • US private-label CPG sales growth accelerated from 2.2% in 2015 to 5.8% in 2018, according to IRI.
  • Major retailers have rolled out private labels across a range of CPG product categories. Target and Kroger have recently launched new CPG brands.
  • Retailers’ shopper data gives them an advantage in better understanding what consumers want, so they can launch private-label products to match.
  • CPG brand owners are fighting back by adding direct-to-consumer channels and boosting R&D spend for product differentiation.

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