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Drivers of private-label growth

In 2006, private-label brands represented 20.5% of all product units purchased and $68.6 billion in sales in the United States, according to the Private Label Manufacturers Association.

Sales rose $1.3 billion from 2005. Growth surged in drugstores and was also strong in specialty stores and slightly higher in supermarkets. But retailers are fundamentally shifting strategies for marketing their own brands. A recent analysis by Information Resources Inc. cites three areas:

1. Sizable shifts are evident—both increases and decreases—at the category level. Private label’s role and influence have evolved significantly.

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