Global Private Label Food & Beverages Market - 2022-2029

Global Private Label Food & Beverages Market - 2022-2029

Market Overview

Private label products are known to be manufactured by one company and marketed under the brand name of another. Companies make these products or third parties focused on the product but do not have their own brand to sell it in the market. The distributor of these products is primarily responsible for the product's labeling and packaging. These food & beverage items are commonly used in a variety of businesses, including beverages, food, and cosmetics. However, in comparison to other brands, these products are reasonably priced.

The global private label food and beverage industry is estimated to expand significantly in coming years, due to rising number of competitive private label participants in the clean label products and nutritious snacks business segments around the globe. In addition, the production, foodservice, hospitality, and food processing, and agriculture services fall under the umbrella of the food and beverage sector. Over the projected timeframe, the introduction of online food delivery systems is predicted to be the most adopted distribution mechanism in the global F&B sector.

The global private label food & beverages market was valued at USD YY million in 2021. It is forecasted to reach USD YY million by 2029, growing at a CAGR of 6.45% during the forecast period (2022-2029).

Market DynamicsGrowing demand for clean label products is driving the growth of global private label food & beverages market

The increase in demand for clean label products among the consumers increases the demand for private label food products which drives the market. Clean label products are in high demand owing to the increase in demand for plant-based proteins, and vegetarian foods as these are healthy and nutritious. In addition, clean label products are completely natural, non-GMO, and made with real ingredients, with no additives or preservatives. In addition, the main benefits of clean label food & beverage products is that consumers can easily read the ingredients and that it is free of chemicals. Companies should be providing good packaging design, food product transparency, and simple ingredients with functional benefits.

Furthermore, the rising awareness about animal testing and increasing consumer backlash has also created a new market space for ‘animal cruelty-free’ that is clean label products, which are more popular in woke and aware millennial populations in developed economies. Thus, owing to this increased demand manufacturers are launching new products in the market to fulfill consumer demands and to grow in the market. For instance, in June 2021, DSM, a Dutch multinational health and nutrition company, has extended its yogurt culture portfolio to include DelvoFresh YS-042 that helps manufacturers meet clean label requirements without compromising on quality.

Market Segmentation: Food stands for the highest share in global private label food & beverages market

In 2021, the food dominated the market and accounted for YY share of the global revenue. The growth of this segment is attributed to the fact that consumers demand nutritional and healthy food products owing increase in awareness about its benefits. For instance, in March 2021, according to Chron, the demand for cereal breakfast in U.S. has increased by 26%. In addition, the awareness regarding the health benefits of clean label products has increased the demand for clean label food products. These products improve metabolism, promotes nutrition intake, helps digestion, good for cardiovascular health, thus, these benefits enabling consumers to buy the cereal based products which ultimately increasing the demand of the segment. Thus, consumers are more interested in food which are safe clean and check on the ingredients of the products. For instance, according to Union Kitchen, 78% of U.S. consumers find it important to recognize the ingredients used in the products they buy.

Geographical Penetration: North America is the dominating region during the forecast period

In 2021, North America had the highest revenue share of YY percent. The region has well-developed farming industry. In addition, different types of ready-to-eat clean label food products have been popular in the U.S., Canada, and Mexico. The growing working population in North America enabling consumers to prefer the ready food with health benefits & items which can save their time and can provide them with good nutrition. For instance, In the in June 2020, according to the International Food Information Council’s (IFIC) June 2021 survey from “Chemical-sounding” to “Clean”: Consumer Perspectives on Food Ingredients, in United States, 63% of adults say the ingredients in a food or beverage have at least a moderate influence on what they buy, and 64% say they try to choose foods made with clean ingredients.

Furthermore, new technological innovations, busy and hectic work schedules along with rapid growth in personal disposable income of consumers enabling the working-class population adopt the clean label products even if they are costly which ultimately increases the demand of the food & beverages in the region and adds to the growth of the market.

Competitive Landscape

The global private label food & beverages market is competitive and comprises players such as DSM, BASF SE, Lonza Group, Glanbia Plc, ADM, Adisseo, BTSA Biotechnologias Aplicadas S.L., Rabar Pty Ltd, Golden Omega and Kinomega Biopharm Inc. among others. The private label food & beverages market competitiveness is estimated to increase over the forecast period as the key players focus on various strategies such as acquisitions, collaborations, new product launches, product innovation with fortification according to the consumer demand along with marketing & advertising. Moreover, growing demand for healthy and nutritious animal cruelty free food & beverages products such as is propelling the market growth. For instance, in March 2022, Cruz Burgers, a consumer-packaged foods company, has announced the debut of its clean-label mushroom burgers in retailers across the Detroit metro area.

COVID-19 Impact: Positive impact on global private label food & beverages market

During the COVID 19 pandemic majority of the population was working from home, as a result of this, there has been extended working hours, time constraints more pressure along with money saving has seen. These factors influenced consumers to buy clean label food products. For instance, in 2020, according to Euromonitor International projected global sales of clean label food products would hit $180 billion. In addition, the easy availability of the clean label food products on online platform increased the sale of the products during covid-19. Thus, clean label food & beverages are considered as millennial’s new favorite owing to its easy availability, availability of variety of options and new product innovations by manufacturers even during and after the covid-19 pandemic. Thus, the growing working population and time constraints enable consumers to buy clean label products. In addition, the surety of sanitization, hygiene and safe products is driving the growth of the market.

The global private label food & beverages market report would provide an access to approximately 53 market data tables, 44 figures and 170 pages