NEW YORK — Store brands experienced a double-digit increase in sales during the first quarter of 2023, according to data from the Private Label Manufacturers Association (PLMA) provided by the Chicago-based market research firm Circana.
The “dollar volume” of national grocery channels was 10.3% in the first three months of 2023, which was almost twice the amount from the same period last year, according to the PLMA. Store brand market shares also increased, with national grocery channels holding dollar shares and unit shares of 19.1% and 20.8%, respectively, which compared with dollar shares and unit shares of 18.5% and 20.3%, respectively, in the first quarter of 2022. Store brands also generated better unit sales than national brands, but the PLMA said that these brands were working with less units—as was the case during the first quarter of 2022.
Circana also tracked several food departments that saw an increase in store brand dollar sales during the first quarter of 2023. Gains were led by beverages, up 17.1%, followed by bakery, up 16.8%, general foods, up 16%, refrigerated, up 15.5% and deli prepared, up 12.4%. Store brand dollar sales in the deli cheese department increased 9% in the first quarter of 2023, while frozen was up 7.1%, produce climbed 6.8% and deli meat rose 5.8%. The only tracked food department sustained a year-over-year decline in store brand dollar sales was meat, down 1.6%, according to the PLMA.
“The Q1 results are particularly impressive since they are compared to 2022 sales figures, which were historically high for US store brands,” said Peggy Davies, president of the PLMA.