Private label growth unwraps opportunities for packaging manufacturers

Core Insights - The presence of private label brands in retail markets is increasing, creating opportunities for packaging companies that serve these brands [1] - Store brands have outperformed national brands in both unit and dollar sales in the U.S. for the first 11 months of 2025, with store brand unit sales growing by 0.4% while national brands declined by 0.7% [2] - Store brand dollar sales increased by 3.6%, compared to a mere 1.1% growth for national brands [2] - The market share of store brands stands at 23.1% of unit sales and 21% of dollar sales [3] - Projected revenue for store brand products is expected to rise from $272 billion last year to $280 billion in 2025, marking an all-time high [3] Industry Impact - The growth of private label brands is influencing the supply chain and packaging manufacturers, who are seen as integral to the private label ecosystem [5] - Shelf-ready packaging is essential for low-cost grocers like Lidl, allowing for efficient stocking and minimal staffing [6][7] - Effective shelf-ready packaging enhances the consumer experience by making products more accessible and visually appealing, which can lead to increased sales [8] - The shift towards private label brands is partly driven by consumers trading down to lower-cost options amid economic uncertainty [8]