CAGR Of 4.65% For US Private Label Forecast Between 2015 And 2019
According to a study carried out by Research and Markets, the US private label food and drinks market is set to have grown by a compound annual growth rate (CAGR) of 4.65 per cent between 2015 and 2019, with Costco Wholesale, Kroger, Safeway, Trader Joe's, and Wegmans set to be among the key retailers in the trend.
Among the central reasons for the growth outlined are the relative difficulty with which branded products will continue to generate consumer loyalty, and the likelihood that younger and well-educated shoppers will become increasing aware of the attractive properties of private label produce.
The report notes that the fact that private label is geared towards general customer satisfaction will give it an edge over branded products, which are produced with specific socio-demographic spectra in mind.
A company analyst commented, "The population of educated and young people is increasing in the US.
"These young educated consumers, being increasingly exposed to various media channels such as TV, Internet, and social media, are more aware of private-label products, private-label food and beverage companies, and the associated benefits, thereby are more influenced to consume private-label food and beverage products."
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Peter Donnelly. To subscribe to ESM: The European Supermarket Magazine, click here