Private label growth didn't start gaining momentum in the downturn.
Not only have private label brands been gaining share for the past decade, experts say these gains are the single-biggest problem facing branded packaged goods players. House brands, once a staple of lower-income households, now enjoy roughly equal penetration among demographic segments. Improvements in quality and packaging have helped removed the stigma attached to buying a no-name product.
According to an NPD study released today, house brands now make up 24% of all food and beverages served in U.S. homes, up from 18% in 1999. Stripping away beverages, private label accounts for roughly 30% of all food served in U.S. homes. And 97% of households purchase unbranded products from time to time.
