Capitalizing opportunities by attracting new customers to be the major strategy among the key players

The private label vendors offer specialty products that are well positioned to leverage this opportunity by attracting new customers. These products are launched with better quality and better aligned with the values of the consumers. For example, Aldi has launched several private label offers to healthcare customers, including products that do not contain antibiotics or hormonal products. In the forecast period, the growing trend of such product expansions is expected to drive market growth.

A company manufactures private labels products that are offered under the brand name of another company. The products of private label are produced by third parties or companies that do not own a brand of their own but that specialize in the product. These alternatives to international or national branded products are usually cost effective. A wide range of products, such as cosmetics, food and drink, textiles, web hosting and more, are subject to private labeling.

Surge in demand for ready to eat foods to drive the global market by 7.2%

In view of the increased demand for ready-to-eat food leading to growth in the manufacturing sector in the Asia-Pacific region, a substantial increase is expected in the private label market for the food & drink industry. The age group 18-35 includes Millenniums and are a major driver behind the growth of prepared meals. The US population of the millennium is estimated at approximately 75.9 million, which accounts for approximately 23.3 percent. The fast-tracked lives of people in advanced and developing economies have brought the working class a pre-emptive shift from conventional meat to food products that are easy to eat.

Food and beverage manufacturers on the private label market will focus on on “on – the-go” food products and increase on-line retail to compete with well-established F&B brands worldwide. The use of flexible packaging solutions, including wraps, films, bags, etc., and of private label market players ‘ contract packaging are projected to further support a preferential shift of customers from branded food to private label food products over the projected period.

Offline distribution channel to be the most flourishing one over the forecast period

The offline channel will cover the maximum sale of food and drink products of the private label in the United States. Offline market growth in this area will be driven by the expansion of distribution outlets offering private-label food and beverages. Furthermore it also helps to sell food and beverage products from private label companies via offline storage through harddiscount stores offering a wide variety of private-label products at low prices. Product differentiation in product quality, packing, pricing and marketing strategies is anticipated to be a critical factor deviating over the forecast period from consumer preferences for large brands to private label products.

Some of the key players operating in the global market include ALDI, Costo Wholesale Corp., Target Brands, Inc., Walmart Inc., Inc., The Kroger Co., Wegmans Food Markets, Coca Cola and Nestle among others.