Private labels see solid growth in the first quarter
According to the Private Label Manufacturers Association (PLMA), private labels saw impressive sales gains in the first quarter of 2022. The trade organization cited data from Chicago-based market research firm IRI showing that brands Private label sales gained 6.5% in sales dollars, while domestic brand sales grew only 5.2% over the same period.
Among departments, 15 of 18 saw private label dollar growth, with only deli cheese, home care and tobacco declining. Delicatessen and bakery recorded the largest increases, of 14.9% and 12.4%, respectively.
The quarterly figures were driven in part by the latest monthly performance of private labels, PLMA noted, noting that in March, private label dollar sales were ahead of the period of 8.3%. the previous year, nearly double the 4.5% increase for national brands. .
“This is the third consecutive monthly report that shows dollar gains for private labels,” said Peggy Davies, president of the New York-based PLMA, which represents 3,500 member companies in more than 75 countries. “Furthermore, this follows the positive performance of the last five months of 2021.”
In January, private label dollar sales increased 4.9%, while national brands increased 4.8%; in February, private label sales increased 6.5%, with national brands adding 6.3%.
For the first quarter, private label dollar share across all major channels was 18.2%, up from 17.7% a year ago. The unit share is 20.2% compared to 19.6% in 2021.
While unit sales continued to decline for both national brands and private labels in March and for the quarter, private labels still performed better than national brands.
In March, national brands saw a 4.1% decline in units, while private brands were down 1.4%. In the first quarter, national brands were down 3.4% and private brands down 3%.
PLMA members can access monthly sales results online through the IRI Unify section. Information is available on 317 categories and 967 subcategories, as well as 18 departments.