Private Label Brands Now 20% of U.S. Dollar Share

NEW YORKPrivate Label products account for nearly 20 percent of dollar share and more than 20 percent of the unit share in stores in the United States, according to Nielsen Co. reported Packaging World.

An article in Packaging World said store brands grew to a 17.3-percent share of dollars and a 21.9-percent share of units at the end of March in the United States, up from 15.2-percent share of dollars and 20-percent share of units in 2007.

When European markets were included, Nielsen found private label increased an average of 1.3-percent share points during 2009 in two-thirds of the 21 countries analyzed.

However, national brands still control82.7-percent of the dollar share and 78.1-percent of unit sales, and have been working to improve products in 2009 to combat rising private label sales. The article noted store brand sales increased 2.5 percent while national brands grew 0.4 percent.

Packaging World said Nielsen expects private label quality to increase and will start to offer more premium and unique goods.

The article highlighted a few other key points of the Nielsen report, including: private-label products captured at least a 20-perent unit share in 48 of 117 categories studied; and heavy buyers of private-label products represented 22 percent of households and accounted for 48 percent of private-label sales in 2009, compared with 20 percent of households and 46 percent of private label sales in 2008.