Private-label Food and Beverage Market in the US 2017-2021
About Private-label Food and Beverage
The private-label food and beverage market in the US encompasses the estimation of private-label food and beverages in the US. The market comprises two prominent distribution channels including offline and online distribution channel and is segmented into two product categories: food and beverage. The food and beverage market in the US is fragmented due to the presence of several global and regional players that compete based on price, packaging quality, product innovation, reputation, marketing channels, and distribution channel. Strategies such as the use of natural ingredients such as stevia sweeteners, clean labeling, omnichannel retailing, and strategic partnerships are the common tactics used by vendors to attain a competitive advantage in the market.
Technavio’s analysts forecast the private-label food and beverage market in the US to grow at a CAGR of 2.98% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the private-label food and beverage market in the US for 2017-2021. To calculate the market size, the report considers the retail selling price as the average selling price of the product..
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Private-label Food and Beverage Market in the US 2017-2021
Technavio recognizes the following companies as the key players in the private-label food and beverage market in the US: Costco Wholesale, The Kroger, Trader Joe's, Wal-Mart Stores, and Wegmans Food Markets
Other Prominent Vendors in the market are: Ahold Delhaize, ALDI, Dollar General, FAMILY DOLLAR STORES, Giant Eagle, H-E-B, Meijer, Publix, target brands, Wakefern Food, Walgreen, and Whole Foods Market.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Digital and social media marketing. With the rise in Internet penetration and applications, a notable change in the promotion and marketing activities of vendors has been noticed. In the US, apart from the conventional marketing channels, social media has proven to be a leading platform for product marketing and brand association. At present, these campaigns and activities are executed on digital platforms such as YouTube, Facebook, LinkedIn, Instagram, and many others. The key players in the market have a strong digital media presence that helps them to effectively market and acquire potential customers. This is due to its wide customer reach and zero cost of marketing and promotional activities. In the next five years, digital marketing and social media platforms will be the key contributors to the growth of the market.”
According to the report, one of the major drivers for this market is Low operating cost leading to higher profit margins. The cost of production of private-label brands is lower than what branded products incur. This low manufacturing cost of private-label food and beverages is the key factor driving the market. The manufacturing costs of national brands are usually higher than that of private labels, thereby leading to price differentiation. This is because regional brands market and advertise their products more aggressively. Their manufacturing costs include warehousing, distribution, and material handling, whereas private-label products do not need to incur logistic costs.
Further, the report states that one of the major factors hindering the growth of this market is Stiff competition from national brands. Competition from national brands offers a strong challenge to the private- label brands. This is because national brands have a wider customer base and high brand awareness. The association between customers and national brands of food and beverage is also stronger than those of private-label brand.
Costco Wholesale, The Kroger, Trader Joe's, Wal-Mart Stores, Wegmans Food Markets, Ahold Delhaize, ALDI, Dollar General, FAMILY DOLLAR STORES, Giant Eagle, H-E-B, Meijer, Publix, target brands, Wakefern Food, Walgreen, and Whole Foods Market.
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