Manufacturers, retailers, and industry professionals converged this month in Rosemont, Illinois, near Chicago, for the Private Label Manufacturers Association (PLMA) trade show. The event, themed “The Store Brands Phenomenon 2024,” highlighted the continued growth of private label products across various categories and channels. With over 1,800 exhibitors and an estimated 15,000 attendees, the show provided valuable insights into current trends and future opportunities. Here are five key takeaways from the event.
1. The Rise of Private Label as Standalone Brands
Private label products have evolved significantly, transitioning from being perceived as lower-cost alternatives to becoming reputable standalone brands. PLMA President Peggy Davies reported that this year, private label sales reached record highs, projected to surpass a quarter trillion dollars. This transformation indicates that consumers are increasingly willing to trust and choose store brands for their quality and value. This trend is backed by strong sales figures in various sectors, demonstrating that private labels now compete head-to-head with national brands.
2. ALDI’s Insights on Consumer Behavior
Dave Rinaldo, president of ALDI USA, delivered a keynote address emphasizing the importance of quality and collaboration between retailers and manufacturers. He pointed out that nearly 50% of Americans switched from name brands to store brands last year, a clear sign of the shifting market dynamics. Rinaldo emphasized that shoppers no longer equate cost savings with a lack of quality. This shift opens up opportunities for retailers and manufacturers to meet consumer demands for quality and value while expanding private label offerings. ALDI’s plans to open 800 new stores within five years further reflect their confidence in the continued growth of private labels.
3. Innovation Drives Consumer Excitement
Innovation remains at the forefront of the private label revolution, with consumers displaying a growing appetite for new and exciting products. PLMA’s Idea Supermarket and New Product Expo showcased an array of innovative items that meet consumer desires for variety and quality. Exhibitors presented an impressive lineup of products, including vegan snacks, ready-to-drink cocktails, and gourmet foods from major retailers like Ahold Delhaize and Amazon. Such offerings highlight the critical role of product innovation in driving consumer interest and maintaining momentum in the private label sector.
4. A Variety of Convenient Options for Home Cooking
The shift towards home cooking has increased the demand for convenient options, with private label products meeting the dual needs for taste and ease of preparation. The exhibit floor at PLMA featured an extensive range of items that cater to these needs, from ready-to-use dips and sauces to quick meal solutions. This trend speaks to the growing consumer preference for products that simplify meal preparation without compromising flavor. Manufacturers who capitalize on this demand can effectively enhance their offerings in the private label landscape.
5. Importance of Storytelling in Branding
One of the most compelling aspects of private label products is the potential for storytelling. Even products classified as private label can possess rich narratives regarding their origin, sustainable sourcing, and production processes. During the event, attendees encountered various products with strong selling points, such as ethically sourced chocolate and organic beverages. Retailers that effectively communicate these stories can create deeper connections with consumers, transforming private labels into brands that resonate on a personal level.
As the PLMA prepares for its future events, including the upcoming Trade Show in November 2025 and the Annual Meeting in April 2025, it is evident that the private label market is primed for continued evolution. Industry players must remain agile, innovative, and, above all, responsive to the changing needs and preferences of consumers to leverage the growing potential of store brands.
