Private label brands the Kirkland seltzers you always stock up on at Costco (COST) - Get Costco Wholesale Corporation Reportand everything from the peanut butter-filled pretzels to the international frozen foods section at Trader Joe's.
The private label product, which is sold separately from the other retailers, has a lot on its plate: they let their creators make all of the profits (instead of sharing them with the manufacturer), while on the consumer side, they can become as popular as everything-but-the-bagel seasoning.
Not every private label brand is a household name; some are clearly more popular than others, according to a recent Numerator survey. Great Value (72.7% of survey respondents bought it), Marketside (44.2%), Freshness Guaranteed (40%) and Dollar Tree (DLTR) - Get Dollar Tree Inc. Report (33.2%)
Walmart (WMT) is responsible for four out of the five brands above, with the exception of Dollar Tree - Get Walmart Inc. Report.
Walmart, Walmart Everywhere
"The days of excluding private label goods as untrackable are over," Numerator CEO Eric Belcher said in a statement. "With market share now approaching 50% in several major categories, CPG manufacturers need visibility into the brand-level performance of private labels more than ever before."
Despite the sheer number of stores available across the country, certain brands invest more in private labels than others. Aldi's received 79.5 percent of its sales from private labels, including 59.5 percent from Trader Joes, 49.4% from Costco, and 30% from Sam's Club.
Get Target Corporation Reportand Amazon's Basics (AMZN) - Get Amazon.com Inc. Report Private label brands that were growing at the fastest rate
Walmart, in contrast, had only 23.3% of its sales coming from private labels, while the rest came from other brands it stocks.
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Is It Price Or Brand Name?
One key finding was related to the financial comfort of those who purchased private label goods.
The old adage is that only low-income individuals buy no-name or private label products. However, shops selling in-house goods received some shocking news.
The similarities between household incomes were infinitesimal, with 17.1% of the private label market share coming from low-income households, whereas higher-income households accounted for 17.2% of the total.
Plus, 56.7 percent of high-income customers expressed a favorable opinion of private label goods, whereas only 52.5% of low-income consumers did.
Although the investigation did not investigate the price differences between private label and designer goods (some of the former are becoming quite costly as the manufacturer presents them as "luxury" goods), private label has traditionally been a method of saving money.
The average private label brand costs between 20% and 40% less than a similar branded item, according to some analysts.
Walmart announced that it would produce a private-label insulin brand in 2021, which it claimed would cover at least 75% of the cost of branded analog goods, which were at the time priced at $72.88 for vials and $85.88 for the FlexPen.
According to the report, price is becoming more important for many consumers than brand name as inflation continues to rise. "In recent months, the number of consumers who believe price is more important than brand name has increased across all income levels."