Executive Summary

Private-label goods capture a minority share of the US grocery market, but there are five specific factors that could boost sales of these products:

• Rising food-price inflation may prompt American shoppers to trade down from branded grocery products.
• Expansion of grocery discounters Aldi and Lidl in the US could fuel competition in private label.
• Amazon’s acquisition of Whole Foods Market could jumpstart Amazon’s grocery private-label offering.
• Retailers could capitalize on heightened consumer demand for more fresh, organic and natural foods.
• Private labels could capture growth in the meal-kit market. Kroger and Albertsons are two grocery retailers that are already tapping this category.