Cadent Consulting Group’s 2018 Private Label Industry Study was released last week. The traditional analysis reaffirms the direction that the majority of the industry is heading or has headed. The report makes what I am sure the authors think is a bold prediction, ” we project its share to hit 25% in the next decade” Given that the nations largest grocer already exceeds 25% this prediction is far from bold, instead I would predict that private brand share will exceed 40% in the next ten years. If you see me at PLMA ask me why?
I will simply refer readers to my Manifesto for a Private Brand Revolution.
Below is the language from their press release.
- “Private Label has historically followed the booms and busts of the broader economy, but that mold is beginning to crack,” stated Don Stuart, Managing Director at Cadent Consulting Group. “Private Label is growing at 3X the rate of national brands, and we project its share to hit 25% in the next decade”.
- Millennials, long considered the shoppers of the future, have arrived, and they are heavy shoppers of Private Label. One-third of their cart is already filled with Private Label, and virtually all millennials state that they will buy at least as much Private Label in the future, with half saying they will buy even more!
- Store Brands are driving store choice, with 54% of millennials saying that their store choice is driven by their retailer’s Private Label. And retailers are leveraging this opportunity by building a real portfolio with their Private Label brand – offering the three key factors of the Private Label success pyramid: quality, selection, and price.
Private Label is no longer just a ‘white labeled package’. Consumers are shopping Private Label as a brand, and retailers are marketing it as one. With shoppers buying for more than just price, retailers are building portfolios of Store Brands with low priced options for the value shopper, as well as premium offerings such as organic.