Global Private Label Food And Beverages Market Size, Share, Opportunities, And Trends By Product Type (Food Products, Beverages), By Distribution Channel (Supermarkets And Hypermarkets, Convenience Stores), By End-User (Retail Consumers, Foodservice And Hospitality), And By Geography - Forecasts From 2024 To 2029

The private-label food and beverages market is expected to witness significant growth during the forecasted period of 2024-2029.

The food and beverage industry is where all the companies in the market are involved in the production and processing of raw food materials into food products, packing the products and then distributing the products. The industry is commonly divided into two major segments, which include Production and Distribution.  Production is where the processing of raw food materials takes place, which includes the processing of meats, cheese, and many others. Production is also where the creation of different beverages including soft drinks, packaged foods, alcoholic beverages, and other modified foods takes place. Distribution is when the processed products that are packaged with the company’s brand label are sent to different distribution chains for sale. Six main segments from the food and beverage industry include beverages, dairy, fruits and vegetables, herbs and spices, meat/ seafood, and confectionery. Beverages include the manufacture and distribution of soft drinks, bottled water, ice and alcoholic beverages. Dairy is the production and distribution of dairy-based products like fermented yoghurts, flavoured milk, and many others. Fruits and vegetables include fresh fruits, vegetables, herbs and spices being distributed to retail and foodservice providers. Meat/ seafood is being distributed from farms, and confectionary is where refined sugar is distributed for industrial and consumer use.

Introduction:

The factors that affect private-label food and beverages market growth are the rise in e-commerce platforms and digitalization. A private label brand is a type of segment in the food and beverages market. Private labels, also called private brands, are products that are manufactured and sold under a specific brand name of a company. Private label brands are common in the food and beverage industry since retail giants like Walmart and Amazon provide great retail services and coverage for private brand manufacturers. Private label products also tend to be lower priced than those with brands and provide affordability and convenience to cost-conscious consumers in the market.

Market Drivers:

• Increase in cost-conscious consumers: Private-label food and beverages provide more cost-efficient options when compared to well-known branded products in the market. In the current period, the cost of goods and services has witnessed an increase in pricing, which is due to the higher labour costs for firms with higher job and labour requirements. As per the data from the World Bank, the inflation in consumer prices has increased from 1.9% in 2020 to 8% in 2022.  This rise in inflation can be linked to the increase in e-commerce platforms and the digitalization of retailing as well, which allows large firms and brands to reach global markets. Due to this, some firms provide a lower-cost option to customers which is produced by the retail itself, which will be privately labelled food and beverage products. This will provide a significant boost to the private-label food and beverages market growth in the forecasted period.

Key Players:

• Costco Wholesale: One of the world’s largest retailers that has warehouse club operations around eight countries. They are dedicated to providing quality service and products in every area of their businesses and are known for their outstanding business ethics. They provide a membership warehouse club service that brings the members top quality and cost-effective pricing on the merchandise.
• Walmart: An American multinational company that is well-known in the retail industry and operates a large number of chains of hypermarkets, discount department stores, and grocery stores across 19 countries. They also provide a seamless shopping experience through their eCommerce platform, which provides benefits like ease of shopping through online retailing, which increases consumer activity.
• Carrefour Group: A French multinational company known for its wholesale and retail operations. They operate through a chain of supermarkets, convenience stores, discount stores, hypermarkets, and cash-and-carry stores. They have a wide range of products, which include food and non-food products like fresh produce, consumer goods, local goods, furnishing goods, electronics and equipment.
• The Kroger Co.: An American multinational company that is known for its retailing operations. They operate around 2,800 stores in 35 states, with annual sales accounting for US$132.5 billion, which ranks Kroger as one of the largest retailers in the global market.
• ALDI: A German multinational company that is known for its retail operations. They are focused on growth in the market and support like-minded people to work with them, further strengthening their position in the market. The company operates over 2000 stores in 36 states in Germany, with 25,000 committed employees.

Regional Analysis:

North America is expected to have a significant share of the private-label food and beverages market during the forecasted period of 2024-2029. The factors that lead to the dominant position in the market are due to the presence of global leaders like Walmart, Costco and Kroger. Another factor that helps in the market growth is the food price inflation in the region. As per the United States Department of Agriculture, the consumer price index has increased by a total of 20.4% from 2018 – 2022. This can provide an opportunity to increase the production and distribution of private-label products, which can provide the necessary boost to propel the private-label food and beverage market during the forecasted period.

Market Developments:

• July 2021: Conad Nord Orvest announced the launch of their distinctive signature brand dubbed I nostri Ori, which focuses on enhancing the traditions and consumption habits of regions. This brand offers a wide range of products that are born and grown with authenticity and ensures growth in the related economy. Conand Nord Ovest always offers safe and high-quality products to customers, because they are committed to supporting the local economies from which small and medium-sized producers are the main players.

Segmentation:

• By Product Type:
  • Food Products
  • Beverages
• By Distribution Channel:
  • Supermarkets and Hypermarkets
  • Convenience Stores
• By End-User:
  • Retail Consumers
  • Foodservice and Hospitality
• By Geography:
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Others