NEW YORK CITY – The private-label brand category has been hot lately, with sales reaching a record high of $118.4 billion last year, Progressive Grocer reports. That’s a $2.2 billion bump from 2014. During the past two years, annual sales of store brands rose 5% in major retail channels, according to the Private Label Manufacturers Association's 2016 Private Label Yearbook.

The dollar share of private labels brands captured 17.7%, also the highest level ever. Across all channels, combined store brand sales accelerated 2%, a percentage matched by national brands, which also increased 2%. Last year, unit sales for private label products hit nearly $44 billion, about the same as in 2014.

Grocery stores have embraced store brands, with sales of that category totaling $62.5 billion last year. Close to one in four products sold at U.S. supermarkets in 2015 was a private-label brand. Other outlets with store brands include specialty chains and convenience stores. Customers continue to purchase store brands for value and preference. Shoppers have the potential of saving around $44 billion annually by buying private-label products over national brands.

Read more about store brands and convenience stores in “Private Matters” from NACS Magazine.