The State of Food & Beverage

Private Label Food & Beverage Brands Gain Market Share in 2025

Private label brands are experiencing explosive growth in the Food & Beverage industry, driven by rising consumer demand for affordable, high-quality products. Private label sales are projected to surpass $270 billion globally this year, with U.S. market value nearing $236 billion. Amid high grocery prices and inflationary pressures, 70% of U.S. shoppers are now turning to store-brand alternatives.

This consumer shift is reshaping the competitive landscape, encouraging manufacturers to invest in better product formulations, elevated branding, and e-commerce expansion. Retailers like Amazon, Costco, and Target are doubling down on their private label offerings while discount grocers and convenience stores introduce accessible alternatives. Though competition from national brands remains fierce, evolving consumer habits and strategic innovation are fueling private label’s momentum.

M&A Surge, AI Integration, and Tariff Impacts Reshape the Market

M&A activity in the food and beverage sector is set to soar in 2025, with private label companies and health-forward brands emerging as key acquisition targets. Aging ownership, lower interest rates, and capital-rich private equity firms are pushing a wave of strategic dealmaking. Notable transactions, such as the acquisition of Harvest Hill Beverage by Castillo Hermanos, reflect a growing appetite for innovation-driven brands with operational scale.

Technology is playing a critical role. Companies are leveraging AI to forecast demand, enhance logistics, and develop personalized nutrition offerings. Simultaneously, sweeping U.S. tariffs on imported goods are driving up costs across key food categories—creating opportunity for domestic producers but also introducing volatility across global supply chains.

To access the full 2Q25 Food & Beverage Private Label Report, click the “Download” button below.