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Exclusive: PL U.S. Dollar Sales Will Double by 2021, Expert Predicts

March 21, 2011
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U.S. private label dollar sales 10 years from now will double from present-day levels as ethnic offerings proliferate and the limited assortment retail format becomes dominant, predicts Carl Munyon, a member of PLBuyer’s editorial advisory board and a former vice president of corporate purchasing with Aldi.

U.S. private label dollar sales 10 years from now will double from present-day levels as ethnic offerings proliferate and the limited assortment retail format becomes dominant, predicts Carl Munyon, a member of PLBuyer’s editorial advisory board and a former vice president of corporate purchasing with Aldi.

Munyon put together his predictions on the shape of private label in 2021 specifically for PLBuyer and eReport.
 
His top five predictions are:
 
  • “Private label growth – Today, private label share by dollar is just under 20 percent. By the year 2021, I see this number doubling to 40 percent. Many changes will occur to make this a reality including the other trends listed below.
  • “Ethnic private label growth – Ethnic private label sales will become a real factor. This will be a result of the population shift and as this population becomes more open to private label replacements of the old traditional labels.
  • “Limited assortment retailer expansion – The European markets already have seen how strong this format can become. As the current players expand and new players enter the U.S. market, this will become a dominant format. With the growth in the limited assortment format, a natural growth in private label will occur.
  • “Private brands accessibility – Today, volume plays so much into the ability of a retailer to have a strong, competitive private label program. As the quality of private brands becomes more of a standard and as label technology becomes more advanced, even the smaller players will be able to have their own private labels at a competitive cost.
  • “Natural/Organics – There has already been a lot of growth in these categories for private brands. In the 2010s, I see this becoming more of the standard in product categories giving a natural boost to the private label versions of these products.”

Watch for upcoming issues of eReport to see what predictions other PLBuyer editorial board members have for the future of private label. PLBuyer’s March issue carries a virtual roundtable in which board members also discuss other private label key issues. Find that online at PrivateLabelBuyer.com.

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