The U.S. Market for Private Label Foods and Beverages: The Store Brand Has Arrived

Published: June 1, 2005 - 376 Pages

Table of Contents

  • Executive Summary
    • Scope and Methodology
      • Scope of Report
      • Report Methodology
    • Introduction
      • Why Private Label?
      • Store Brands Reach 100% Household Penetration
      • Balancing Quality and Value
      • Brand Loyalty vs. Store Loyalty
    • The Market
      • Total Market Approaches $46 Billion
        • Table Projected U.S. Retail Sales of Private-Label
      • IRI-Tracked Sales of Private-Label Foods and Beverages
      • Consumers More Aware Of, Satisfied With Store Brands
    • Market Share Trends
      • Private-Label Foods Gaining Ground on National Brands
      • Private-Label Beverages Drop Slightly Behind
      • Best- and Worst-Performing Private-Label Food Categories
      • Best- and Worst-Performing Private-Label Beverage Categories
    • Marketing and New Product Trends
      • Still Targeting "Super-Heavy" Users, Large Households
      • Premium and Multi-Tiered Product Lines
      • Trends in New Product Introductions
      • Trend-Watching in the Market at Large
    • Consumer
      • The Private-Label Mindset
      • Private-Label Preference Rates
    • Looking Ahead: Trends and Opportunities
      • Major Health Trends Cross Classification Boundaries
      • Retail Channel Opportunities
      • Reaching Out to New Demographics
  • Introduction
    • Market Definition
      • Scope of Report
      • Two Segments: Foods and Beverages
      • Food Classifications
      • Beverage Classifications
    • Overview: The Private-Label Continuum
      • Why Private Label?
      • Store Brands Reach 100% Household Penetration
      • Balancing Quality and Value
      • Brand Loyalty vs. Store Loyalty
      • Private-Label Retailers
      • Private-Label Manufacturers
      • Food Brokers and Procurement Agents
  • Chapter The Market - Highlights
    • Market Size and Growth
      • Methodology for Estimates
      • Total Market Approaches $46 Billion
        • Table U.S. Market for Private-Label Foods and
      • IRI-Tracked Sales of Private-Label Foods and Beverages
        • Table IRI-Tracked Sales of Foods and Beverages,
      • IRI-Tracked Sales of Food, 2000–2004
        • Table IRI-Tracked Sales of Food, 2000-2004:
      • IRI-Tracked Sales of Beverages, 2000–2004
        • Table IRI-Tracked Sales of Beverages, 2000-2004:
      • Private-Label Market Share on the Rise
    • Trends in Private-Label Food Classifications
      • Dairy Foods
      • Grain-Based Foods
      • Sweets
      • Condiments, Sauces, Cooking-Baking
      • Meat, Poultry, Seafood
      • Vegetables & Salads
      • Snacks
      • Meals (Breakfast, Lunch, Dinner)
      • Fruit
      • Ethnic Foods
      • Pizza
      • Appetizers & Side Dishes
      • Infant Formula & Baby Food
        • Table IRI-Tracked Sales of Dairy Foods Classification,
        • Table IRI-Tracked Sales of Grain-Based Foods Classification,
        • Table IRI-Tracked Sales of Sweets Classification, 2000-2004:
        • Table IRI-Tracked Sales of Condiments & Sauces Classification,
        • Table IRI-Tracked Sales of Meat, Poultry, Seafood Classification,
        • Table IRI-Tracked Sales of Vegetables & Salads Classification,
        • Table IRI-Tracked Sales of Snacks Classification, 2000-2004:
        • Table IRI-Tracked Sales of Meals (Breakfast, Lunch, Dinner)
        • Table IRI-Tracked Sales of Fruit Classification, 2000-2004:
        • Table IRI-Tracked Sales of Ethnic Foods Classification, 2000-2004:
        • Table IRI-Tracked Sales of Pizza Classification, 2000-2004:
        • Table IRI-Tracked Sales of Appetizers & Side Dishes
        • Table IRI-Tracked Sales of Infant Formula & Baby Food
    • Trends in Private-Label Beverage Classifications
      • Dairy Beverages
      • Juice
      • Soda
      • Water
      • Coffee and Tea
      • Wine & Spirits
      • Sports & Energy Drinks
        • Table IRI-Tracked Sales of Dairy Beverages Classification,
        • Table IRI-Tracked Sales of Juice Classification, 2000-2004:
        • Table IRI-Tracked Sales of Soda Classification, 2000-2004:
        • Table IRI-Tracked Sales of Water Classification, 2000-2004:
        • Table IRI-Tracked Sales of Coffee & Tea Classification,
        • Table IRI-Tracked Sales of Wine & Spirits Classification,
        • Table IRI-Tracked Sales of Sports & Energy Drinks
    • Factors to Market Growth
      • Consumers More Aware Of, Satisfied With Store Brands
      • More Single and Affluent Purchasers Turn to Private Label
      • Increasing Innovation Among Private-Label Manufacturers
      • Supercenter Private-Label Takes Off
      • Retailer Consolidation and Differentiation
      • Natural Foods Specialists Expand Store Brands
      • Better Health Driving Sales Across the Board
      • Closer Tracking of General Market Trends
      • Private-Label and Economic Recovery
    • Projected Market Growth
      • $58.7 Billion at Retail by 2009
        • Table Projected U.S. Retail Sales of Private-Label Foods
      • Projected Sales of Private-Label Foods
      • Projected Sales of Private-Label Beverages
        • Table Projected U.S. Retail Sales of Private-Label Dairy
        • Table Projected U.S. Retail Sales of Private-Label
        • Table Projected U.S. Retail Sales of Private-Label Sweets,
        • Table Projected U.S. Retail Sales of Private-Label
        • Table Projected U.S. Retail Sales of Private-Label Meat, Poultry,
        • Table Salad, 2004–2009 (in millions of dollars)
        • Table Projected U.S. Retail Sales of Private-Label Snacks,
        • Table Projected U.S. Retail Sales of Private-Label Meals,
        • Table Projected U.S. Retail Sales of Private-Label Fruit,
        • Table Projected U.S. Retail Sales of Private-Label Ethnic Foods,
        • Table Projected U.S. Retail Sales of Private-Label Pizza,
        • Table Projected U.S. Retail Sales of Private-Label Appetizers
        • Table Projected U.S. Retail Sales of Private-Label Infant Formula
        • Table Projected U.S. Retail Sales of Private-Label Dairy Beverages,
        • Table Projected U.S. Retail Sales of Private-Label Juices, 2004–2009
        • Table Projected U.S. Retail Sales of Private-Label Soda, 2004–2009
        • Table Projected U.S. Retail Sales of Private-Label Water, 2004–2009
        • Table Projected U.S. Retail Sales of Private-Label Coffee & Tea, 2004–2009
        • Table Projected U.S. Retail Sales of Private-Label Wine & Spirits, 2004–2009
        • Table Projected U.S. Retail Sales of Private-Label Sport & Energy Drinks, 2004–2009
  • Market Share Trends
    • Overview
      • Methodology for Estimates
      • Private-Label Foods Gaining Ground on National Brands
        • Table IRI-Tracked Sales of Private-Label Foods by Classification,
        • Table IRI-Tracked Sales of Total Foods by Classification, 2002 vs.
      • Private-Label Beverages Drop Slightly Behind
        • Table IRI-Tracked Sales of Private-Label Beverages by Classification,
        • Table IRI-Tracked Sales of Total Beverages by Classification,
    • Market Share Trends: Private-Label Food
      • Dairy Food Staples Post Big Gains But Lose Share
      • Grain-Based Foods Suffer from Low-Carb Trends
      • Candy Is Lone Bright Spot in Private-Label Sweets
      • Condiments and Sauces Stay Strong with Staple Foods
      • Fresh Is Best in Meat, Poultry, and Seafood
      • Veggie Sales Decline, But Frozen Foods Looking Up
      • Private-Label Snacks Go Nuts
      • Soup, Breakfast Foods Drive Meals Classification
      • Frozen Fruit Finds Favor with Consumers
      • Ethnic Foods Holding Steady, Expecting Growth
      • Private-Label Finds a Niche in Pizza
      • Appetizers and Side Dishes on the Ups
      • Baby Foods a Hard Sell for Private Label
      • Best- and Worst-Performing Private-Label Food Categories
        • Table IRI-Tracked Sales of
        • Table IRI-Tracked Sales of
        • Table IRI-Tracked Sales of Private-Label Sweets
        • Table IRI-Tracked Sales of Private-Label Condiments,
        • Table IRI-Tracked Sales of Private-Label Meat, Poultry,
        • Table IRI-Tracked Sales of
        • Table IRI-Tracked Sales of Private-Label Snacks
        • Table IRI-Tracked Sales of Private-Label Meals
        • Table IRI-Tracked Sales of Private-Label Fruit Classification
        • Table IRI-Tracked Sales of Private-Label Ethnic Foods
        • Table IRI-Tracked Sales of Private-Label Pizza
        • Table IRI-Tracked Sales of
        • Table IRI-Tracked Sales of
        • Table Top 30 Private-Label Food Categories by Dollar
        • Table Top 30 Private-Label Food Categories by Percentage
        • Table Bottom 20 Private-Label Food Categories by Dollar Sales
        • Table Bottom 20 Private-Label Food Categories by Percentage
    • Market Share Trends: Private-Label Beverages
      • Dairy Dominates Private-Label Beverages
      • Juice Sales and Shares Hit a Slump
      • Private-Label Soda Sales Bubble Up
      • Other Private-Label Beverages Give Way to Water
      • Coffee and Tea Out of Step with Overall Market
      • Wine and Spirits Poised to Break Out
      • Sports and Energy Drinks Losing Steam
      • Best- and Worst-Performing Private-Label Beverage Categories
        • Table IRI-Tracked Sales of
        • Table IRI-Tracked Sales of Private-Label Juice Classification
        • Table IRI-Tracked Sales of Private-Label Soda Classification
        • Table IRI-Tracked Sales of Private-Label Water Classification
        • Table IRI-Tracked Sales of
        • Table IRI-Tracked Sales of
        • Table IRI-Tracked Sales of
        • Table Top 25 Private-Label Beverage Categories by Dollar
        • Table Top 25 Private-Label Beverage Categories by
        • Table Bottom 20 Private-Label Beverage Categories
        • Table Bottom 20 Private-Label Beverage Categories by
  • Marketing and New Product Trends
    • Marketing Trends
      • Still Targeting "Super-Heavy" Users, Large Households
      • Premium and Multi-Tiered Product Lines
      • Private-Label Packaging Goes Upscale
      • Value-Added Products
      • Focusing on Local Markets
    • New Product Trends
      • Trends in New Product Introductions
      • Trend-Watching in the Market at Large
      • Organic and Natural Foods
      • Functional and Fortified "Phoods"
      • Whole Grains and High Fiber
      • Targeting Women and Children
      • Ethnic, Exotic Flavors on the Rise
      • Convenience Foods: Portable Private-Label
        • Table Number of New Private-Label Food and Beverage
        • Table The U.S. Private-Label Market:
        • Table The U.S. Private-Label Market:
    • Advertising and Promotion
      • Consumer Adspends by Major Chains
      • Store Circulars Are Primary Private-Label Tool
      • Store Brands Get National Media Muscle
      • Seasonal, Cross-Promotional Initiatives
    • Retail Trends
      • Supercenters Stealing Retail Channel Market Share
      • Retail Channels Possess Unique Strengths, Weaknesses
      • Retooling Private-Label Retail
  • Company Profiles
    • Retailer Profiles
      • Albertson's, Inc. (Boise, Idaho)
      • Costco Wholesale Corporation (Issaquah, Washington)
      • Kroger Co. (Cincinnati, Ohio)
      • Publix Super Markets, Inc. (Lakeland, Florida)
      • Safeway, Inc. (Pleasanton, California)
      • Target Corp. (Minneapolis, Minnesota)
      • Trader Joe's (Monrovia, California)
      • Walgreen Co. (Deerfield, Illinois)
      • Wal-Mart Stores, Inc. (Bentonville, Arkansas)
      • Whole Foods Market, Inc. (Austin, Texas)
    • Manufacturer Profiles
      • American Beverage Depot (Miami, Florida)
      • ConAgra Foods, Inc. (Omaha, Nebraska)
      • Cott Corp. (Toronto, Canada)
      • Malt-O-Meal Company (Minneapolis, Minnesota)
      • Ralcorp Holdings (St. Louis, Missouri)
      • Schreiber Foods, Inc. (Green Bay, Wisconsin)
  • The Consumer
    • Consumer Overview
      • Note on Simmons Market Research Bureau Consumer Data
      • The Private-Label Mindset
      • Private-Label Preference Rates
        • Table Indices Among Private-Label Shoppers for Selected
        • Table Overview of Private-Label Usage: Selected Food and
    • Consumer Focus: Dairy Case Products
      • Fertile Ground for Private Label
      • Demographics by Product Classification
        • Table Percentage Who Most Often Use Private Label:
        • Table Private-Label User Demographics: Butter, 2004 (U.S. adults)
        • Table Private-Label User Demographics: American
        • Table Private-Label User Demographics: Grated Cheese, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Natural/Imported Cheese, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Cottage Cheese, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Cream Cheese, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Eggs, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Ice Cream/Sorbet, 2004 (U.S. adults)
        • Table Private-Label User Demographics:
        • Table Private-Label User Demographics: Sour Cream, 2004 (U.S. adults)
    • Consumer Focus: Condiments and Cooking Ingredients
      • Lower Rates for Processed Products
      • Demographics by Product Classification
        • Table Percentage Who Most Often Use Private Label:
        • Table Private-Label User Demographics: Catsup, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Jams, Jellies, & Preserves, 2004 (U.S. adults)
        • Table Private-Label User Demographics:
        • Table Private-Label User Demographics: Peanut Butter, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Pickles, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Prepared Salad Dressing, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Salad or Cooking Oil, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Sugar Substitutes, 2004 (U.S. adults)
        • Table Private-Label User Demographics: White Granulated Sugar, 2004 (U.S. adults)
    • Consumer Focus: Meal Products
      • Vegetables Are Private-Label Stronghold
      • Demographics by Product Classification
        • Table Percentage Who Most Often Use Private Label: Meal Products, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Complete
        • Table Private-Label User Demographics: Dry Packaged Pasta, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Rice/Rice Dishes, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Soup/Broth in Cans or Jars, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Canned Tomatoes,
        • Table Private-Label User Demographics: Tuna in Can or Pouch, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Canned or Jarred
        • Table Private-Label User Demographics: Frozen Vegetables, 2004 (U.S. adults)
    • Consumer Focus: Breakfast and Bakery Products
      • Bagels as Standouts
      • Demographics by Product Classification
        • Table Percentage Who Most Often Use Private Label:
        • Table Private-Label User Demographics: Bagels, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Cold Breakfast Cereal, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Hot Breakfast Cereal, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Refrigerated/Frozen
        • Table Private-Label User Demographics: English Muffins, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Ready-to-Eat Muffins, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Breakfast Pastries, 2004 (U.S. adults)
    • Consumer Focus: Snacks
      • Uniform Range for Purchasing Rates
      • Demographics by Product Classification
        • Table Percentage Who Most Often Use Private Label: Snacks, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Ready-to-Eat Cookies, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Corn/Tortilla Chips and
        • Table Private-Label User Demographics:
        • Table Private-Label User Demographics: Popcorn Products, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Potato Chips, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Pretzels, 2004 (U.S. adults)
    • Consumer Focus: Beverage Products
      • Preference Rate Tiers for Juices, Coffee/Tea, and Colas
      • Demographics by Product Classification
        • Table Percentage Who Most Often Use Private Label:
        • Table Private-Label User Demographics: Instant Hot Cocoa Mix, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Ground Coffee, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Instant Coffee, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Orange Juice in Bottles/Cans/Cartons, 2004 (U.S. adults)
        • Table Private-Label User Demographics:
        • Table Private-Label User Demographics: Frozen Orange Juice, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Milk Flavorings, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Liquid
        • Table Private-Label User Demographics: Diet Cola Soft Drinks, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Diet
        • Table Private-Label User Demographics: Powdered Soft Drinks, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Regular Cola Soft Drinks, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Regular
        • Table Private-Label User Demographics: Instant Iced Tea, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Ready-to-Drink Iced Tea, 2004 (U.S. adults)
        • Table Private-Label User Demographics: Regular Tea in
        • Table Private-Label User Demographics: Non-Carbonated
        • Table Private-Label User Demographics:
  • Looking Ahead
    • Trends and Opportunities
      • Major Health Trends Cross Classification Boundaries
      • Retail Channel Opportunities
      • Reaching Out to New Demographics
      • Categories to Watch
  • Addresses of Selected Marketers

Abstract

Private-label (or store-brand) foods and beverages continue to evolve to meet the demands of a more diverse, budget-conscious, and market-savvy American consumer culture, now accounting for one of every five items sold in U.S. mass-market outlets and charting healthy annual gains. This all-new Packaged Foods report examines the driving trends in the market, dividing it into approximately 20 broad classifications (e.g., breakfast/lunch/dinner, sweets, ethnic foods, snacks, meat/poultry/seafood, grain-based foods, bottled water, juice, etc.), covering every important area of the supermarket using custom-tabulated Information Resources, Inc. (IRI) data, and giving detailed consideration to the most dynamic individual categories and segments. Product trends are also quantified through Productscan new product reports as well as data from the Private Label Manufacturers Association and the U.S. Department of Agriculture.

This report also provides historical sales figures and projections through 2009; examines how private-label products have risen to meet market-altering trends (e.g., low-carb); and pinpoints current and coming trends—including natural/organic foods, whole-grain foods, and products targeting Hispanic and other ethnic populations—that offer new growth opportunities. Trends unique to the private-label market are also detailed, including the growth of “premium” or tiered private-label products, changes in retailer-owned supply chains, the growing market share of supercenters’ store brands, and the evolving roles of private-label food brokers and procurement agents. Other market drivers are also surveyed, such as the changing balance of quality and price considerations among consumers, the possible future effects of cost increases (caused by, among other factors, the growing price of oil), and the effect of overall economic recovery (or lack thereof) on the market. The report also tracks private label’s penetration into new categories and profiles leading retailers including Albertson’s, Costco, Kroger, Publix, Target, Trader Joe’s, and Walgreens, as well as key private-label manufacturers such as ConAgra Foods, Cott Corp., Malt-O-Meals, Palmetto Canning Co., and Ralcorp Holdings.

Report Methodology
The information in The U.S. Market for Private Label Food and Beverages is based on both primary and secondary research. Primary research involved on-site examination of the retail milieu, interviews with marketing, public relations and industry analysts within the food market and consultants to the industry. Market size data was derived from Information Resources, Inc. Secondary research entailed data-gathering from relevant trade, business, and government sources, including company literature. New product information is gathered via literature research, personal interviews and data compiled by ProductScan, a service of Marketing Intelligence Service Ltd. Consumer information was derived from Simmons Market Research Bureau, fall 2004 National Consumer Survey.

What You’ll Get in this Report
The U.S. Market for Private Label Food and Beverages makes important predictions and recommendations regarding the future of this market, and pinpoints ways current and prospective marketers can capitalize on current trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that The U.S. Market for Private Label Food and Beverages offers. The report addresses the following segments:

  • The Market (including market size and composition, and projected market growth)
  • The Competitors
  • Competitive Profiles (of the mainstream competitors, specialists and up-and-coming niche players, and analyses of the products they market)
  • Retail Strategies
  • The Consumer (who’s buying what, and where)
  • The Products
  • Trends and Opportunities

Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

How You Will Benefit from this Report
If your company is already competing in - or against -- the private label food and beverage industry, or is considering making the leap, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for store brand products, as well as projected sales and trends through 2009. Contributing to that understanding will be a complete analysis of sales data, and a detailed discussion of the consumer for store brand foods and beverages based on Simmons data.

This report will help:

  • Marketing Managersidentify market opportunities and develop targeted promotion plans for private label foods and beverages.
  • Research and development professionals stay on top of competitor initiatives and explore demand for store-brand products.
  • Advertising agencies working with clients in the food industry understand the product buyer to develop messages and images that compel consumers to purchase these products.
  • Business development executives understand the dynamics of the market and identify possible partnerships.
  • Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.


Get full details about this report
(US): 800.298.5294
(Int): +1.240.747.3095
Fax: 240.747.3004