Natural Store Brands Beat Supermarket Private Label

New YorkPrivate label brands from specialty food retailers, such as Trader Joes and Whole Foods, have beat traditional supermarkets in product sales between 2005 and 2009, according to Private Label Food and Beverage in the U.S." by market research publisher Packaged Facts.  

Packaged Facts estimated private-label food and beverage dollar sales totaled $87 billion in 2009, to account for 17 percent of total food and beverage retail sales in the United States. Dollar sales rose 6 percent over the 2008 level of $82 billion, driven primarily by a 7-percent increase in the food market (private-label beverage sales rose less than 1 percent). Private labels penetration rate was at 14 percent of total food and beverage retail sales in the beginning of the 2005 to 2009 period, but began to rise in 2007 as the economy showed signs of slowing. At 15 percent in 2007, store brands penetration jumped in 2008 as the rate grew to 16 percent.

The report found traditional supermarkets and grocery stores are losing market share to alternative stores. Growth among traditional food and beverage retailers was modest at a compound annual growth rate (CAGR) of 4 percent between 2005 and 2009. Perhaps most notable was the growth in specialty food stores Whole Foods and Trader Joes, which grew at a CAGR of 14 percent during the 2005 to 2009 period. Supercenter stores such as Wal-mart and Target also witnessed high growth at a CAGR of 9 percent. Club stores, such as BJs Wholesale, Costco, and Sams Club grew slightly better than the mean at a CAGR of 6 percent. At the low end, discount supermarkets, including SuperValu, Aldi and dollar store Dollar General saw food and beverage sales actually decline in 2009 from the level seen in 2008. Still the group managed to gain a small five-year gain growing at a CAGR of 2 percent.

Private Label Food & Beverage in the U.S." analyzes the U.S. market for private label foods, and is primary focused on the mass-market products sold through supermarkets, big box, warehouse clubs, and mass merchandisers. The report also examines trends affecting other food and beverage retailers, including convenience stores, drugstores, health and natural food stores.