Consumer interest in purchasing private label items has remained constant for a generation but its success has also tended to rise and fall with the economy. That may no longer be the case.
In fact, at the beginning of 2018, private label was growing at 4.1% compared to national brands at only 1.4%, according to a new study from Cadent Consulting Group. Retailers participating in the study said they expected private label to grow 5% annually over the next three years.
“Private Label has historically followed the booms and busts of the broader economy, but that mold is beginning to crack,” said Don Stuart, managing director for Cadent Consulting Group. “Private Label is growing three times the rate of national brands, and we project its share to grow to 25% in the next decade.”