Private Label Grocery Brands vs Name Brands Report

The State of the Global Grocery Retail Industry in 2025

According to a recent report by CulinaryCoverage.com, the global grocery retail industry is experiencing significant changes in 2025. With the rise of e-commerce and changing consumer preferences, traditional grocery retailers are facing stiff competition from online platforms and private label brands.

Market Share Analysis

Private label grocery brands have been steadily gaining market share in recent years. According to data from Nielsen, private label brands accounted for 17% of all grocery sales in 2024, up from 15% in 2020. This trend is expected to continue as consumers become more price-conscious and value-driven.

On the other hand, traditional name brands are facing pressure to innovate and differentiate themselves in order to maintain their market share. While name brands still hold a significant portion of the market, they are increasingly being challenged by private label brands that offer comparable quality at a lower price.

Financial Performance

In terms of financial performance, private label grocery brands are also showing strong growth. According to a report by McKinsey, private label brands grew at a rate of 6% in 2024, compared to just 3% growth for name brands. This indicates that private label brands are not only gaining market share but also increasing their profitability.

Some of the top private label grocery brands, such as Kirkland Signature from Costco and Great Value from Walmart, have become household names in their own right. These brands offer a wide range of products across various categories, from food and beverages to household essentials.

Volume and Distribution

Private label grocery brands are also expanding their presence in terms of volume and distribution. Many retailers are increasing their private label offerings to meet the growing demand from consumers. For example, Kroger has expanded its Simple Truth brand to include organic and natural products, which have been well-received by consumers.

In addition, private label brands are leveraging e-commerce platforms to reach a wider audience. With the rise of online grocery shopping, private label brands have the opportunity to showcase their products to a global audience and compete with name brands on a level playing field.

Future Plans and Strategies

Looking ahead, private label grocery brands are expected to continue their growth trajectory. Retailers are investing in product innovation, marketing, and distribution to differentiate their private label offerings from name brands. Some retailers are also focusing on sustainability and ethical sourcing to appeal to environmentally conscious consumers.

In conclusion, private label grocery brands are posing a significant challenge to traditional name brands in the global grocery retail industry. With their competitive pricing, quality products, and strategic marketing, private label brands are reshaping the landscape of the industry and forcing name brands to adapt or risk losing market share.