Private label share of consumer packaged goods grew in dollar sales over the past year, according to a new Times & Trends report from SymphonyIRI Group.

Private label share of consumer packaged goods grew in dollar sales over the past year, according to a new Times & Trends report from SymphonyIRI Group.

 

The report, The CPG Year in Review: The Search for Footing in an Evolving Marketplace, shows that private label dollar sales grew by 0.3 percent in 2011 to 18.7 percent of all CPG sales. The revenue growth came as unit sales fell slightly over the past year, a 0.2 percent drop from 2010 to a 22.9 percent share of all sales in 2011.
 
The report shows that half of consumers are buying more private label items today than they did before the economic downturn began, and that private label products “played a major role in helping consumers save money throughout the downturn.”
 
“Retailers across CPG channels are focused on growing their private label lines because they offer higher margins versus national brands, as well as a level of differentiation in a highly competitive marketplace,” the report states.
 
Supercenters and club stores showed the strongest private label growth in the past year. The report suggests private label makers need to stay on top of their game,
in order to continue growing in the marketplace,

 

“To compete effectively, manufacturers must keep a keen eye on the competitive environment, and continually hone pricing and innovation strategies to mitigate private label gains, and to protect and grow shares of their own brands,” the report says.