As grocery prices soar, and consumers shift their shopping strategies, we’re going to take a closer look at TCP’s bread & butter – Private Label Brands. 60% of our daily workflow is Private Label specific, and it’s been the backbone to our business for a decade, so let’s dig deeper.

According to data from Nielson, ‘Private-label products in 2024 represent roughly 20% of basket share, growing more than a third since 2019’. That’s one-sixth of all consumer-packaged goods!

That means at least one-sixth of us are probably familiar with the terminology ‘Private Label Brands’. If not, it’s when a range of products are developed and sold by a specific retailer under their own name. Also known as Private Brands, Store Brands, or Own Brand. But did you know there are at least 4 types of Private Label Branding? 

Each type is relevant, depending on the retailer’s goals and how those align with a retailer’s brand values, unique offering, etc. (that’s a convo for another day).

Most, if not all, Private Label Brands fall into one of these categories:

• Generic

• Copycats

• Value Innovator

• Premium

1 Generic

Other Examples: Target’s Market Pantry (original)

• Low price points – Up to 20-50% less than National Brand Leader

• Packaging design is usually very straightforward and functional

• Often a strategic approach for retailers who specialize in commodity

• Sometimes less than ideal shelf placement 

2 Copycats

Other Examples: Costco, CVS Health, Harbor Freight

• Equal quality, with a lower price 

• More Moderate discount for consumers (around 5-20% below brand leader)

• Brand Imitation Packaging – following design cues of brand leader, per category

• Positioned on shelf next to brand leader to highlight equivalence

• Regular price promotions 

3 Value Innovators 

Other Examples: Target, Trader Joe’s

• Objective quality is relatively equal to brand leader but sold as best value. 

• Provide best value and increase trust and loyalty 

• 20-50% lower price point than brand leader

• Packaging design is thoughtful and exclusive, yet cost efficient 

• Can increase brand trust and customer loyalty

• Product shelf placement is flexible – doesn’t rely on national brand for recognition

4 Premium

Other Examples: Erewhon, William Sonoma

• Best in quality, often better than National Brands (think imported or specialty)

• Price can be equal to or even higher than brand leader 

• Provides added value products to brand portfolio

• Can increase brand trust and customer loyalty

• Packaging design differentiates from National Brand leader

• Highly desirable shelf placement 

The private label industry has come a long way since its beginnings in the early 19^th century. Today’s Private Label Brands offer consumers a world of delight at reasonable prices. With more reliance on e-commerce, things like strategic shelf placement are continue to evolve and shift the market. Retailers are going all-in on building their private brand programs to pique consumer interest and drive loyalty because consumers want more. Which makes us wonder, what private label brands are you enjoying these days?