U.S. Private Label Food Market – Focused Insights 2025-2030

MARKET INSIGHTS

The U.S. private label food market was valued at USD 145.63 billion in 2024 and is projected to reach USD 283.36 billion by 2030, growing at a CAGR of 11.73% during the forecast period. The market is growing significantly due to the shift towards plant-based food, the premiumization of private-label food, the rising trend of 'better-for-you' options, and the increasing demand for healthier and more nutritious private-label food. Additionally, the surge in demand for packaged food, the growing hospitality industry, and increased demand for dairy products are driving the market growth.

MARKET TRENDS & DRIVERS

Shift Towards Plant-based Food

Shift towards plant-based food is a significant trend in the U.S. private label food market and is driven by several factors including growing demand for wellness & health, product innovations, sustainability, increased dietary needs & preferences, cost advantage of plant-based private-label food, and introduction of allergen-friendly and clean-label plant-based products. The awareness about the environmental, ethical, and health benefits associated with plant-based diets has increased across the U.S. Many consumers are seeking vegan, vegetarian, or flexitarian diets due to environmental, ethical, or health concerns. This rising demand for dietary food preferences increases demand for plant-based options.

Advancements Shaping the Future of Private Label Food

Advancements are a major driver shaping the future of the US private label food market. It is due to product innovation, packaging advancements, technology-driven personalization, digitization & e-commerce, ethical practices & sustainability, ingredient innovation, and increased focus on specialty foods. Technologies like reusable pouches and time-temperature indicators can improve food safety and offer convenience to consumers. Busy lifestyles are driving the demand for portion-controlled and convenient meals, for small or single households. The consumer preference for clean-label products with minimal processing and recognizable ingredients is growing significantly. The meal kits having pre-portion with recipe instructions are gaining traction in the U.S. market. It offers a semi-homemade cooking way to save time and maintain the cooking hobby.

INDUSTRY RESTRAINTS

Availability of Alternatives

The availability of alternatives is a major challenge in the U.S. private label food market. The private-label food companies face stiff competition from various alternatives such as specialty brands, national brands, etc. The national brands have stringer consumer trust and quality, often making them the first choice for many shoppers. The extensive budget for marketing allows the national brands to dominate advertising, promotions, and shelf space which can overshadow private-label products. Many retailers offer their private-label brands which is creating competition within the private-label category.

U.S. PRIVATE LABEL FOOD MARKET INSIGHTS

• By Product: The dairy product segment holds the largest market share of over 25%. The segmental growth is driven by increased consumption of dairy products and increased demand for plant-based dairy alternatives. The dairy segment includes products like milk, cheese, butter, yogurt, sour cream, ice cream, and plant-based alternatives. Demand for private-label dairy products is growing due to higher consumption, interest in plant-based options, improved quality, and trust in store brands. Private-label milk is popular as consumers seek different tastes and quality. The U.S. market offers a wide range of private-label cheeses, with cheese being a major part of the dairy market. The demand for yogurt is increasing, with private-label options expanding to include Greek, regular, and flavored varieties. Consumers are willing to pay more for premium flavors and quality ingredients, driving growth in this segment.
• By End User: The B2C segment shows the highest growth of 11.89%. The B2C segment has seen a rising consumer acceptance of private-label products. The B2C segment covers private-label food sold directly to consumers through stores, online retailers, and discount grocers. There is growing acceptance of private-label products, with U.S. consumers spending about 10% of their income on fast food and increasingly seeking healthier options. Demand for fresh fruits, vegetables, and dairy is rising, and manufacturers are offering healthier private-label choices. Young adults are also turning to private-label snacks and prepared meals for affordability and convenience. These factors are expected to boost demand for private-label foods in the B2C segment in the U.S. going forward.
• By Age Group: The age group between 35 to 64 segment holds the largest market share. The high disposable income of this age group drives the demand for premiumization in private-label food options in the U.S. market. This segment, made up of individuals balancing family and work, has high disposable income and drives demand for premium private-label food in the U.S. While they are generally loyal to brands, they are open to private-label options, especially for convenience and quality. Parents often rely on snacks or prepared meals due to their busy schedules and tend to purchase a variety of private-label foods, including dairy, meat, seafood, and bakery items.

REGIONAL ANALYSIS

The South region leads in both market share and growth in the U.S. private label food market, driven by population growth, regional chains, a growing Hispanic population, and many single-family homes. Retailers like Walmart are expanding their private-label lines, boosting the region's growth. Florida, North Carolina, Georgia, and Texas are key contributors. States like Florida and Texas attract new residents with lower living costs and more opportunities, increasing overall food demand. The demand for prepared foods is also growing due to consumers seeking convenience.

COMPETITIVE LANDSCAPE

The U.S. private label food market report consists of exclusive data on 36 vendors. The market is very competitive, with many players fighting for attention. Private label brands often offer lower prices than national brands. Retailers are working to improve product quality and introduce new products to attract more customers. They are also focusing on better packaging and marketing to build strong private-label food brands and increase customer loyalty.

RECENT VENDOR ACTIVITIES

In 2023, Dollar General a chain of discount stores expanded its private label brand Clover Valley, to offer more than 100 new items for national brand alternatives. It includes a wider selection of condiments, sauces, entrees, snack sides, and more at affordable price points with new packaging designs.