Top 50 Largest Private Label Markets
The visual below shows 50 country/category combinations where private label had the highest value sales in 2014, and maps them alongside forecast growth potential over 2015-2020 (or 2014-2019 for categories in soft drinks and tissue and hygiene). The smaller coloured bubbles indicate retail value sales of private label, whereas larger circles indicate the size of the total market. By comparing the two, one can get a sense of how large private label is relative to the overall market, and the extent to which private label presence poses a threat to leading brands in the market.
US fresh milk, for example, was the largest private label market globally in 2014. With value sales of US$14.5 billion, it is a large market, and private label accounted for 67% of total sales, or US$9.7 billion. The visual above also suggests that competition for market share is likely to increase further in the category; as value sales of fresh milk in the US are forecast to decline over 2015-2020, increasing pressure on brands to maintain share against rising private label sales.
Other categories, such as bread in the US, offer more room for both private label and branded players. Bread sales total US$22.8 billion, but private label accounts for just 16%, as indicated by the large gap between the inner and the outer circles in the chart.
Overall, the US remains the country with the best prospects for private label in actual terms, because of the sheer size of the US market. The UK, however, appears to have the highest share of private label, indicating the success of UK retailers in targeting consumers with private label offerings.