Market Research Report
Private-label Food and Beverage Market in US 2019-2023
|Published by||TechNavio (Infiniti Research Ltd.)||Product code||531743|
|Published||Content info||106 Pages
Delivery time: 1-2 business days
|Private-label Food and Beverage Market in US 2019-2023|
|Published: May 17, 2019||Content info: 106 Pages||
The dollar value share of private-label brands (including food and beverage and beauty and personal care products) in the US retail market increased from 17.5% in 2013 to 18% in 2018. The private-label food and beverage contribute a major share of this growth. Competitive pricing and easy availability are the major factors driving the sales of private-label food and beverage products. Private-label brands are reaping more benefits in terms of the dollar value of sales due to factors such as increasing premium and specialty product offerings. Factors like perceived high quality and lower price than other national brands encourage more consumers to purchase their private-label products confidently. Technavio's analysts have predicted that the private-label food and beverage market will register a CAGR of around 3% by 2023.
Various private-label vendors, including Lidl and Kroger, are involved in the rapid expansion of their geographic presence in the US. For instance, Lidl launched its first store in the US in 2017. Since then, the German supermarket grocery chain has managed to launch almost 53 stores across the US by the end of 2018. Apart from these expansions, vendors are also expanding their private-label product offerings in their stores across the US. For instance, ALDI planned to expand its private-label offerings in fresh, organic, vegetarian, and vegan range to its 1,600 stores across the US in 2018. As these products are economical and are not compromised on quality, product line extension will further increase the demand for private-label food and beverage products among consumers.
The private-label food and beverage market in the US is highly competitive due to the presence of various private-label and global vendors. The national brands have a strong customer base with high brand reputation compared with private-label vendors. National brands also have the advantage of economies of scale, which helps them leverage innovative marketing strategies and cover a better geographic reach. The other huge drawback of the fragmented structure of private-label food and beverage market in the US is that it presents a barrier to technologies that require standardization and integration. Intense competition between private-label vendors and national brands might slow down the growth of the market in the US during the forecast period.
For the detailed list of factors that will drive and challenge the growth of the private-label food and beverage market during 2019-2023.
The market appears to be moderately fragmented. The presence of several companies, including Amazon.com Inc. and Costco Wholesale Co. makes the competitive environment quite intense. Factors such as the increasing dollar value share of private-label brands and the private-label vendor's expansion of geographic presence and product line extension will provide considerable growth opportunities to the private-label food and beverage manufacturers. Target Brands Inc., The Kroger Co., and Walmart Inc. are some of the major companies covered in this report.