On Developing Trends

Leaving behind the nondescript packaging and “generic” identity of a decade ago, private label food and beverage sales are soaring, says market research firm Packaged Facts. We most recently reported on this trend in the July 2006 issue of BRANDPACKAGING (archives at www.brandpackaging.com).

In Private Label Food and Beverages in the U.S, Packaged Facts estimates 2006 sales at more than $48 billion, and projects that sales will top $56 billion by 2011.

Market growth comes as no surprise as retailers and manufacturers have replaced the low-quality “generic” products with high-quality products and packaging that rival national brands. Report findings show that 41 percent of shoppers now identify themselves as frequent buyers of store brands, versus five years ago, when only 36 percent did.

Dairy and grain foods lead the pack, with 2006 U.S. retail sales reaching more than $7 billion and $5 billion respectively. These same segments showed some of the slowest growth during the 2002 to 2006 period. In the beverage category, store-brand bottled water and energy drinks top the list, with bottled water growing by more than 12 percent.

The current wave of high-visibility private-label products—including organics and other premium fare—has effectively contributed to both the building of brand equity and relationships with core customers.

• Market intelligence. At Packaged Facts, contact Tom Ehart at 240.747.3014 or tehart@marketresearch.com