Own-Label Offerings - US Grocery

Goals

To gain information and data on private-label (own-label, own brand) offerings from major US grocery stores.

Early Findings

  • According to The Balance, the 10 largest grocery store chains in the US are Kroger, Albertsons, Publix, HEB, Whole Foods, Hy-vee, Southeastern Grocers, Giant Eagle, Wegmans and WinCo.
  • Other prominent grocery stores include Costco, Sprouts, Target, Trader Joe's and Walmart.
  • In 2019, 40% of surveyed consumers said they would actually pay equal price or more for an own-label product if they liked it enough.
  • 85% of consumers stated they trust private brands as much as regular brands and 81% purchase at least one private brand every shopping trip.
  • Sales of own-label products grew 11% in the "premium fresh grocery" segment.
  • In 2019, own-label products made up 59% of CPG sales at "value groceries" in the US. They made 23% of "premium fresh grocery" sales and 22% of mass merchandisers'.
  • Costco holds the largest overall market share of private-label CPG goods in the US (29%), with Kroger and Walmart tied for 2nd at 19%. Target is 3rd (13%).
  • Trader Joe's consistently tops consumer surveys for the own brand consumers would most like to purchase. 59% of consumers stated they would consider buying store brand products there, followed by Meijer and Aldi (55%) and Publix, Kroger and Costco (53%).
  • In the same survey, Meijer ranked top among millennial consumers specifically.
  • Recent data from Costco and Trader Joe's underlined the impact signature products can have on sales. Consumers buying Trader Joe's (own brand) cauliflower gnocchi shop at the store 2.2x more than others. For Costco, those purchasing the store's rotisserie chicken spend $25 more than other Costco shoppers and shop 1.7x more often.

Proposed next steps:

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