Private label grocery brands thrive in Denver, Sept 2024

Private label grocery brands have seen significant growth in Denver, particularly in the first half of 2024, as consumer perceptions shift towards viewing these products as high-quality alternatives to national brands. This change is driven by a broader acceptance among younger and higher-income demographics, leading to an increase in market share and dollar sales. According to a report from CoBank's Knowledge Exchange, private label products are projected to surpass $250 billion in sales, representing about 20% of grocery basket share. The report highlights that private label products have gained traction in categories where branding is less critical, such as produce, dairy, and animal proteins. Retailers are capitalizing on this trend, as private label offerings typically yield higher profit margins compared to national brands. As a result, grocery retailers are expected to expand their private label selections, focusing on growth areas like bakery, seafood, and beverages. Consumer sentiment has shifted dramatically, with a recent survey indicating that only 2% of shoppers consider private label food and beverage products inferior to name brands. This perception is consistent across various income levels and age groups, suggesting a long-term viability for private label brands in the market. In response to the growing popularity of private label products, national brands are likely to increase their innovation efforts to reclaim market share. Companies like ConAgra and Hershey are already announcing initiatives aimed at enhancing their product offerings to compete effectively against the rising private label segment.