The Rising Trend of Own-Brand Products in the Grocery Retail Industry
In recent years, there has been a noticeable shift in the grocery retail industry towards own-brand products. These products, also known as private label or store brand products, are created and sold exclusively by a specific retailer. While own-brand products have been around for decades, their popularity and prevalence have significantly increased in the past few years. In this report, we will explore the reasons behind this trend and why more grocery retailers are investing in their own-brand products.
The Growth of Own-Brand Products
According to a recent report by CulinaryCoverage.com, own-brand products have been experiencing steady growth in the grocery retail industry. In 2025, these products accounted for nearly 25% of total grocery sales globally. This represents a significant increase from just 15% in 2020. The growth of own-brand products can be attributed to several factors.
One of the main drivers of this trend is consumer demand for high-quality, affordable products. Own-brand products are often priced lower than national brands, making them an attractive option for budget-conscious consumers. Additionally, many retailers have invested in improving the quality and variety of their own-brand products, making them competitive with national brands in terms of taste and packaging.
Benefits for Retailers
Investing in own-brand products can provide several benefits for retailers. One of the main advantages is increased profit margins. Own-brand products typically have higher profit margins than national brands, as retailers have more control over pricing and production costs. This can help retailers offset lower margins on other products and improve overall profitability.
Additionally, own-brand products can help retailers differentiate themselves from competitors. By offering unique and high-quality products that can only be found in their stores, retailers can attract and retain customers. Own-brand products can also help build customer loyalty, as shoppers may develop a preference for these products over national brands.
Market Share and Competition
The increasing popularity of own-brand products has led to a shift in market share within the grocery retail industry. In 2025, CulinaryCoverage.com reported that retailers who invested heavily in own-brand products saw a significant increase in market share compared to those who did not. For example, retailers like Aldi and Trader Joe’s, known for their extensive own-brand product lines, have seen steady growth in market share over the past few years.
This trend has also led to increased competition among retailers. As more players enter the own-brand product market, retailers are constantly innovating and improving their product offerings to stay ahead of the competition. This has resulted in a wider variety of own-brand products available to consumers, ranging from basic staples to gourmet specialties.
Future Plans and Opportunities
Looking ahead, the future looks bright for own-brand products in the grocery retail industry. CulinaryCoverage.com predicts that by 2030, own-brand products will account for over 30% of total grocery sales globally. This presents a significant opportunity for retailers to continue investing in their own-brand product lines and expanding their market share.
One key area of opportunity is in online retail. With the rise of e-commerce and online grocery shopping, retailers have the opportunity to reach a wider audience and increase sales of their own-brand products. By offering a seamless online shopping experience and promoting their own-brand products effectively, retailers can capitalize on this growing market segment.
In conclusion, the trend of own-brand products in the grocery retail industry shows no signs of slowing down. With consumers increasingly seeking high-quality, affordable products and retailers recognizing the benefits of investing in their own-brand lines, the future looks promising for this growing market segment. By understanding the reasons behind this trend and seizing the opportunities it presents, retailers can position themselves for success in the evolving grocery retail landscape.
For more information on the state of the global grocery retail industry in 2025, trends, challenges, and opportunities, please visit CulinaryCoverage.com.
