• by Sarah Mahoney  @mahoney_sarah, January 21, 2025

Private-label experts have crunched the 2024 numbers, finding that consumer spending on private-label brands rose 3.9%, reaching $271 billion. National brands, by comparison, gained just 1% in dollar sales.

The Private Label Manufacturers Association calculates the spending using data from Circana, the market research company.

Sales of such products have been steadily gaining, fueled both by food inflation and more innovation, as stores expand and improve their brands.

All the food and nonedible departments showed dollar growth, led by refrigerated, up 7.5%, general food (4.3%) and beverages (4%).

Beverages, pet care and home care notched the largest unit gains.

Private label segmentation has become a consistent growth strategy for stores, with companies continually upgrading and expanding collections.

Target continues to lead the way and now has more than 45 private labels, many among top sellers. Last year, it debuted Dealworthy, a lower-end collection with an uncharacteristically no-frills approach to packaging, with more than 400 products.

That move seemed like a direct step toward Walmart’s “everyday low price” promise.

Walmart, meanwhile, made a move that seemingly copied Target’s strategy, launching Bettergoods, its most extensive private-label effort in 20 years. Focusing on higher-end products, which the retailer describes as “trend-forward and chef-inspired,” Bettergoods competes with more upscale store brands, like Target’s Good & Gather and Kroger’s Simple Truth Organic.

As part of an industrywide awareness event, many stores are joining in the debut of Store Brands Month, which aims to further raise the profile of store-brand collections.

Albertsons, for example, is celebrating with widespread promotions at Safeway, Vons, Jewel-Osco, and Shaw’s stores, offering as much as 25% off private-label goods through its “for U” loyalty program, which includes O Organics, Signature SELECT, Open Nature, and Lucerne.