U.S. Private Label Food Market - Focused Insights 2025-2030

The U.S. Private Label Food Market was valued at USD 145.63 billion in 2024, and is projected to reach USD 283.36 billion by 2030, rising at a CAGR of 11.73%.

RECENT VENDOR ACTIVITIES

• In 2023, Dollar General a chain of discount stores expanded its private label brand Clover Valley, to offer more than 100 new items for national brand alternatives. It includes a wider selection of condiments, sauces, entrees, snack sides, and more at affordable price points with new packaging designs.
• In 2023, Southeastern Grocers, which is a parent company of Winn-Dixie grocery stores, Fresco y Mas, and Harveys Supermarket started a new store brand product line,Know & Love. It is designed to offer customers a wide range of affordable, clean-label products. They have prioritized the great taste and value of products and offer products across a wide range of food categories.

KEY TAKEAWAYS

• By Product: The dairy product segment holds the largest market share of over 25%. The segmental growth is driven by increased consumption of dairy products and increased demand for plant-based dairy alternatives.
• By End User: The B2C segment shows the highest growth of 11.89%. The B2C segment has seen a rising consumer acceptance of private-label products.
• By Age Group: The age group between 35 to 64 segment holds the largest market share. The high disposable income of this age group drives the demand for premiumization in private-label food options in the U.S. market.
• By Region: The South region accounts for the largest share and shows the highest growth in the U.S. private label food market, driven by rapid population growth and the strongest presence of regional chains.
• Growth Factor: The U.S. private label food market is set to grow due to increased demand for dairy products and a surge in demand for packaged food.

MARKET TRENDS

Shift Towards Plant-based Food

Shift towards plant-based food is a significant trend in the U.S. private label food market and is driven by several factors including growing demand for wellness & health, product innovations, sustainability, increased dietary needs & preferences, cost advantage of plant-based private-label food, and introduction of allergen-friendly and clean-label plant-based products. The awareness about the environmental, ethical, and health benefits associated with plant-based diets has increased across the U.S. Many consumers are seeking vegan, vegetarian, or flexitarian diets due to environmental, ethical, or health concerns. This rising demand for dietary food preferences increases demand for plant-based options.

Premiumization in Private Label Food

Premiumization in private label food is a significant trend in the U.S. private label food market. It is driven by several factors including growing demand for high-quality & specialty products, shift in consumer perception, profit margins for retailers, retailer’s premium private label brands, increased competition with national brands, and increased demand for experiencing unique food from consumers. Due to the high disposable income, people are willing to pay more for premium private-label food which is made up of high-quality ingredients, rival restaurant quality, and unique flavors. The companies are focusing on matching or exceeding the quality of national brands. Retailers are investing more to increase the quality of private-label food offerings. They are focusing on closing the gap with national brands in terms of quality and taste.

MARKET DRIVERS

Surge in Demand for Packaged Food

The surge in demand for packaged food is a significant driver in the U.S. private label food market. It is driven by several factors including changing consumer lifestyles, shifting preferences for convenience & economic pressure, heath-conscious choices in packaged foods, innovations in packaging, growing e-commerce adoption, and affordability. The demand for hygiene packaging is growing significantly in the U.S. market. People are becoming more aware of the importance of food safety, especially after the COVID-19 pandemic. Packaged food protects from contamination by moisture, air, and bacteria. It helps to extend the shelf life of food and lowers the risk of foodborne illnesses.

Advancements Shaping the Future of Private Label Food

Advancements are a major driver shaping the future of the US private label food market. It is due to product innovation, packaging advancements, technology-driven personalization, digitization & e-commerce, ethical practices & sustainability, ingredient innovation, and increased focus on specialty foods. Technologies like reusable pouches and time-temperature indicators can improve food safety and offer convenience to consumers. Busy lifestyles are driving the demand for portion-controlled and convenient meals, for small or single households. The consumer preference for clean-label products with minimal processing and recognizable ingredients is growing significantly. The meal kits having pre-portion with recipe instructions are gaining traction in the U.S. market. It offers a semi-homemade cooking way to save time and maintain the cooking hobby.

INDUSTRY RESTRAINTS

Availability of Alternatives

The availability of alternatives is a major challenge in the U.S. private label food market. The private-label food companies face stiff competition from various alternatives such as specialty brands, national brands, etc. The national brands have stringer consumer trust and quality, often making them the first choice for many shoppers. The extensive budget for marketing allows the national brands to dominate advertising, promotions, and shelf space which can overshadow private-label products. Many retailers offer their private-label brands which is creating competition within the private-label category.

SEGMENTATION INSIGHTS

INSIGHTS BY PRODUCT

The U.S. private label food market by product is segmented into dairy, bakery & confectionery, meat, seafood, and meat alternatives, snacks & prepared meals, fruits & vegetables, sauces, dips & condiments, and others. The dairy segment includes milk, cheese, butter, yogurt, sour cream, ice cream, plant-based dairy alternatives, and more. The demand for private-label dairy products is driven by several factors, including increased consumption of dairy products, growing demand for plant-based alternatives, perceived quality improvements, and increased trust in in-store brands. The demand for private-label milk is high in the U.S., as many consumers seek and prefer different tastes and quality compared to national brand products. A wide variety of cheese types are available in the U.S. market under private labels, ranging from mozzarella, cheddar, and processed cheese to specialty cheeses. Cheese remains a major component of the U.S. dairy market. The demand for yogurt is rising significantly in the U.S., with private-label yogurt options expanding to include Greek, regular, and flavored varieties. The trend of premiumization is pushing consumers to pay more for unique flavors, higher-quality ingredients, and indulgent experiences, thereby contributing to the segment's growth.

INSIGHTS BY END-USER

The U.S. private label food market by end-user is categorized into B2C and B2B. The B2C segment shows significant growth, with the fastest-growing CAGR of 11.89% during the forecast period. The B2C segment includes private-label food sold directly to consumers through retail channels such as supermarkets, hypermarkets, convenience stores, online retailers, and discount grocers. This segment has seen a rise in consumer acceptance of private-label products. U.S. consumers spend around 10% of their income on fast food, and the demand for healthier food is significantly increasing. Consumers are seeking fresh fruits and vegetables, as well as a wide variety of dairy items. Manufacturers in the U.S. are offering healthier options in the private label food category due to high demand from health-conscious individuals. Healthy food options include fruits and vegetables, prepared meals, and other similar products, which are becoming more appealing to consumers. The demand for snacks and prepared meals among young adults in the U.S. is also on the rise. Young adults are turning to private-label foods for affordability and convenience. Private label products offer variety and convenience, catering to diverse needs and busy lifestyles. These factors are expected to drive the demand for private label foods in the B2C segment in the U.S. during the forecast period.

INSIGHT BY AGE GROUP

The age group between 35 and 64 accounted for the largest share of the U.S. private label food market. People in this segment are balancing family and work life. Due to their high disposable income, this age group drives the demand for premium private label food options in the U.S. market. While this group tends to have stronger brand loyalties, they are open to purchasing private-label foods. They focus more on convenience and quality, especially in categories like snacks. Due to their busy working lives and hectic schedules, parents in the U.S. often rely on snacks or prepared meals for convenience. They tend to purchase a variety of private-label food products, such as dairy, meat and seafood, and bakery items.

REGIONAL ANALYSIS

The South region accounts for the largest share and shows the highest growth in the U.S. private label food market, driven by rapid population growth, a strong presence of regional chains, a growing Hispanic population, and a large number of single-family homes. Retailers like Walmart, headquartered in Arkansas, have a strong presence in the South and are focusing on expanding their private-label product lines, which contributes to the region's growth. Florida, North Carolina, Georgia, and Texas are the major states contributing to the private label food market in this region. States like Florida and Texas offer lower living costs and more economic opportunities, attracting new residents. As a result, there is a high demand for food overall. The demand for prepared foods is rising significantly in this region due to consumers' busy schedules and their preference for convenience.

SEGMENTATION & FORECASTS

By Product

• Dairy
• Bakery & Confectionery
• Meat, Seafood, and Meat Alternatives
• Snacks & Prepared Meals
• Fruits & Vegetables
• Sauces, Dips, & Condiments
• Others

By End-User

• B2C
• B2B

By Age Group

• 35 to 64
• Below 34
• 65 & Above

By Region

• South
• West
• Midwest
• Northeast

COMPETITIVE LANDSCAPE

The U.S. private label food market report consists of exclusive data on 36 vendors. The market is highly competitive with a diverse set of players vying for market share and consumer attention. Private label brands often compete on price, offering products at lower prices than national brands. Retailers in this market are heavily investing in improving the quality of their products to close the gap between national and private-label brands. They are focusing on introducing innovative new products to differentiate their offerings, which helps them cater to a wider consumer base. Companies in this market are also focusing on effective packaging and marketing strategies to build strong private label food brands. This approach helps improve customer loyalty to the brand.

Key Vendors

• Aldi
• Amazon
• Conagra Brands, Inc.
• Costco Wholesale Corporation
• Kroger
• Target Brands, Inc.
• The Hain Celestial Group, Inc.
• The J.M. Smucker
• TreeHouse Foods Inc.
• Walmart

Other Prominent Vendors

• Ahold Delhaiz
• Albertsons
• Berner Food & Beverage, LLC
• Bimbo Bakeries USA
• B&G Foods, Inc.
• Dairy Farmers of America, Inc.
• Dollar General
• Engelman’s Bakery
• Giant Eagle
• H E B, LP
• Hormel Foods Corporation
• Hy-Vee, Inc.
• LACTALIS
• LiDestri Foods
• Lidl
• Maple Leaf Foods
• McCormick & Company, Inc.
• POST HOLDINGS, INC.
• Publix
• Southeastern Grocers
• Tyson Foods, Inc.
• UNFI
• United Foods International (USA), Inc.
• Walkers Fresh Foods
• Wegmans Food Markets
• WinCo Foods

KEY QUESTIONS ANSWERED

1. How big is the U.S. private label food market?
2. Which product segment has the largest share in the U.S. private label food market?
3. Which end-user segment provides more business opportunities in the U.S. private label food market?
4. Who are the major players in the U.S. private label food market?
5. Which region holds the largest share in the U.S. private label food market?