Private Label Accounts for 18% of Total CPG Spend

Kwik Trip’s Kitchen Cravings is the second-fastest-growing private-label brand.

February 03, 2023

ALEXANDRIA, Va.—Consumers spent more on private-label goods in the three months ending in December 2022 compared to the same time period a year ago, according to Numerator. Private label now accounts for 18% of the spend on consumer packaged goods, up across all income groups.

Kwik Trip’s Kitchen Cravings took the second spot among the fastest-growing private-label brands–up 1.7 points. Amazon Basics was the leader for fastest-growing private-label brand—up 2.8 points year over year.

Overall, baby (+1 percentage point), grocery (+0.34) and household (+0.21) sectors are driving the upward trend for private-label dollar share. Baby, grocery and pet sectors are driving the trend for unit share.

Purchasing private label to save money is more likely among middle-income and high-income households (38% and 37% of these segments, respectively) compared to low-income households (31%). These two household sectors are also more likely to say private-label quality has improved over time. However, positive sentiment towards private-label quality has declined by 5 percentage points over the past two years.

Slower private-label gains for low-income households could be driven by the fact that they are looking for better deals overall. Sentiment toward finding the best price over brand name has skyrocketed in the past year, says Numerator.

Canned vegetables, meats and cheese are trending up in private-label share within tracked categories. Paper products and most tracked baby categories have also seen gains in dollar share. Private-label cold, cough and flu and digestive health meds are trending down in share.

Companies that have seen increases in private-label share in the last three months include Costco and Sam’s Club. Aldi has also showcased consistent share growth.

The most popular CPG private-label brands by household penetration are: Great Value (74.7%), Equate (52.1%), Marketside (44.7%), Freshness Guaranteed (40.8%) and Dollar Tree (34.5%). 7-Eleven’s private-label brand ranked at 19.8%.

Private-label brands at convenience retailers can drive loyalty and raise the company’s image with regards to fair prices.

At Nouria Energy Stores in New England, sales of a product line introduced five years ago are outpacing center-store branded items. According to Kristine Modugno, director of category management at the 170-unit convenience store chain, year over year sales of the company’s private-label My Nouria line are growing at a double-digit rate, driven by new flavors, enhanced packaging and customer demand for quality items at a value price.

In Texas, meanwhile, sales of TXB-branded products reached more than $1 million in 2021, according to Benjamin Hoffmeyer, vice president, marketing and merchandising, TXB.

“Many of our products are growing at a 50% to 60% rate thanks to their value proposition,” he told NACS Magazine. “Their quality is equal or better to that of national brands, while the price per ounce to the consumer is better than national labels.”

Read more about how c-stores are implementing private labels in their product offer in “An Exclusive Offer” in the August 2022 issue of NACS Magazine.