Wednesday, July 23, 2025

Private Label Sales Break Records as Retailers Shift Strategy in 2025

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Key Takeaways

  • Private label (store brand) dollar sales grew 4.4% in H1 2025, outpacing national brands’ 1.1%.
  • Unit sales of store brands rose 0.4% while national brands declined 0.6%.
  • Store brands hit record market shares: 21.2% in dollars, 23.2% in units.
  • Refrigerated and Beverages led store brand growth by department.
  • PLMA forecasts 2025 private label sales to reach $277 billion.

Private Label sales surged in the first half of 2025, surpassing national brands in both revenue and volume growth, and notching historic market share gains. Retailers are responding by leaning further into innovation and category diversification—particularly in refrigerated and beverage segments.

According to Circana data shared exclusively with the Private Label Manufacturers Association (PLMA), store brand dollar sales rose 4.4% year-over-year through June 15. National brands grew just 1.1% over the same period.

On the volume front, unit sales of private label products increased 0.4%, while national brands fell 0.6%.

“This is not just a passing trend,” said PLMA President Peggy Davies. “Shoppers are clearly recognizing the unbeatable combination of quality, value, and innovation that store brands bring to the table.”

Market Share Reaches New Highs in Private Label Sales

Private Label sales now account for 21.2% of total U.S. retail dollar sales and 23.2% of unit volume—both record-setting figures. The data points to a durable shift in consumer preference as retailers increase their investment in store-owned lines.

“Private label used to mean generic and low-cost,” said Neil Stern, partner at GoodFood Advisors. “Now, it’s where the most differentiated, premium offerings are emerging.”

Refrigerated and Beverage Categories Drive Growth

Among nine tracked retail sectors, Private Label sales climbed in seven. The refrigerated category led the pack with a 13% jump, followed by beverages at 4.8%. Frozen foods, general food, and pet care also posted solid gains.

In units sold, beverages rose 4.2%, trailed by home care (+3.4%), pet care (+3.3%), and frozen (+2.1%). General merchandise remained the only lagging segment, posting declines in both dollar and unit sales.

“Refrigerated and beverage categories have become the growth engine of store brands,” said Kelsey Rudd, senior analyst at CPG Watch. “Retailers are applying innovation here to chip away at the strongholds of legacy national brands.”

2025 Forecast: Private Label Sales to Hit $277 Billion

PLMA expects Private Label sales to reach $277 billion by year’s end—up from $271 billion in 2024 and continuing a multiyear streak of record performance.

This growth comes not just from inflation or cost-cutting, experts say, but from consumers’ evolving trust in private brands’ quality and design.

“Consumers aren’t just saving money. They’re choosing quality and control,” Rudd said. “Private label is no longer a compromise.”

PLMA Expands Education and Trade Show Strategy

To keep pace with rising industry demand, PLMA is expanding educational offerings and ramping up its flagship trade events. Its Executive Education and Mastering Enterprise Sales programs are now open for registration, alongside its “Meet the Retailers” digital speaker series this October.

Upcoming speakers include executives from Thrive Market, Misfits Market, and AWG. Meanwhile, Store Brands Month returns in January, with a leadership conference scheduled for Bentonville in 2026.