Private Brands Growing 3x Faster Than National Brands

After years of failing to match the sales growth of national brands, private brands (PB) have reversed this trend in 2017 and 2018.  These brands have posted sales growth 3x larger than that of national brands and their greatest success is in categories you might not expect.

PBs are seeing the most success in premium categories.  The sales growth for the Tier 5 category (reserved for the most premium products) was 10.6%.  Across all tiers, they saw a 3% increase in sales while national brands saw a -0.5% decrease in sales.  This demonstrates a changing perception of the quality of private brands.  The full results for Private and National brands are below. 

Sales Growth (Tier 5 = highest quality, Tier 1 = lowest quality)

Private Brands

  • Tier 5 (+10.6%)
  • Tier 4 (+4.1%)
  • Tier 3 (+3.7%)
  • Tier 2 (+1.6%)
  • Tier 1 (-2.3%)

National Brands

  • Tier 5 (+6.3%)
  • Tier 4 (+1.8%)
  • Tier 3 (-0.7%)
  • Tier 2 (-1.6%)
  • Tier 1 (-7.4%)

These numbers demonstrate two major trends in food and beverage: 1. Consumers now view private brands as being able to provide top quality products, not just lower quality imitations.  2.  Sales in general are trending away from low-quality products to high-quality products.  What do these trends mean for food and beverage companies?

Food and beverage companies need to stand out in quality not just from other national brands, but from private ones as well.  Without the ability to convey high quality to the consumer they will be missing out on a growing number of opportunities.

One way for brands to differentiate themselves is a third-party endorsement of taste and quality from ChefsBest. Awards like this can be leveraged on the pack and in marketing to further drive the quality messaging of a brand. Click here to learn more about our award marketing.