NEW YORK – Nielsen’s Total Consumer Report showed that national brands were beating store brands at the end of 2016. In 2017, however, in-house brands were starting to outpace national brands and by the end of the year, the were “posting dollar growth of more than three times the rate of branded products.”

In-house brands makeup 17% of the market and bring in nearly $120 billion every year. Experts point to lower costs on store-brand products. Nielsen estimates that one in every five items sold in U.S. supermarkets was a store brand last year.

“You don’t differentiate yourself by selling the same things as everyone else,” says Matt Sargent, Senior Vice President of Retail at consultant Magid, told FoodNavigator-USA. “Any retailer that doesn’t have a premium private label brand is in danger going forward.”

Consultants say that private label growth would likely increase “dramatically” over the next three to five years. Consumers are buying, and it’s a way for retailers to differentiate themselves, improve customer loyalty and boost profits.

Companies are hitting it hard. Kroger has introduced 1,000 new private label grocery and household items in the past 18 months. They’re already generating more than $20 billion a year from its private label brands. And Alberton’s recently announced it’s expanding its Open Nature private-label brand into non-food categories and will introduce nearly 240 new products this year. The brand already has Open Nature-branded baby and pet food products and is looking to introduce home care products to the mix.