According to Cadent Consulting Group’s 2018 report, “The Branding of Private Label,” store brand dollar share in grocery is expected to hit a record high of 18.4 percent in 2018 and reach 25 percent over the next decade. One big reason: Millennials.
While the typical shopping cart is 25 percent private label, Millennials’ baskets are 32 percent — and almost half of these consumers plan to purchase somewhat or much more private label in the coming year. With no memory of white-label generics and little loyalty to national brands, “Millennials are driving private label growth,” says Cadent principal Karen Strauss. “They think of it as just another brand,” not a cheap substitute for the real thing. In addition, Millennials are much more likely than, say, Baby Boomers to shop in non-traditional outlets such as natural grocers, deep discounters, club stores and online where store brand sales are expanding.