Shun NagaiIn the U.S. market, private labels (PB) are growing at a faster pace than national brands (NB). In 2024, PB dollar sales increased by 3.9%, significantly outperforming NB growth of just 1.0%—nearly four times higher. In unit sales, PB rose by 2.3%, while NB declined by 0.6%.
A similar trend is evident in the pet care sector. PB recorded a 1.7% increase in dollar sales, reaching $5.3 billion, alongside a 3.5% increase in unit sales. This steady growth reflects improving consumer perceptions of PB product quality and nutritional value, as well as a renewed emphasis on price and convenience in purchasing decisions.
Retailers are also expanding investments in PB, elevating packaging design and reinforcing quality-value messaging. As consumers increasingly recognize that they can “save without sacrificing quality,” PB market share is expected to continue expanding.
Market Shifts and the Role of Private Labels
The U.S. pet food market is currently at a critical turning point, shaped by evolving consumer behavior and economic pressures. This environment presents a rare opportunity for private labels to redefine market structure and establish long-term leadership.
However, this window of opportunity will not remain open indefinitely. The purpose of this proposal is to outline a strategic action plan that enables PB brands to transition from passive followers to proactive market leaders.
Recent market data clearly shows PB outperforming NB:
| Metric | PB (2024) | NB (2024) |
|---|---|---|
| Dollar Sales Growth | +3.9% | +1.0% |
| Unit Sales Growth | +2.3% | -0.6% |
According to the Private Label Manufacturers Association (PLMA), total U.S. private label sales across all categories reached a record $270.58 billion in 2024. Within pet care specifically, Cascadia Capital reported $5.3 billion in PB sales. PLMA data further shows PB capturing 16.5% dollar share and 17.6% unit share in the pet category, demonstrating a firmly established position.
Behind this momentum lies a fundamental shift in consumer perception. As ADM’s Colton Clason notes, “Perceptions of product quality and nutrition have improved, while convenience and price have become more influential purchase drivers.” The outdated image of PB as a “cheap substitute” is fading, replaced by recognition of PB as a smart, value-driven choice.
Yet this tailwind simultaneously exposes structural vulnerabilities in the traditional PB business model. Satisfaction with current success risks forfeiting future opportunity. Moving to the next stage of growth requires a clear-eyed assessment of the current model and a transition toward a more proactive and innovative strategy.
Structural Challenges of the Current PB Model
Sustained growth requires a deep analysis of the business model that supports current success—and a recognition of the strategic risks embedded within it. While efficient, the current PB model contains significant vulnerabilities in the face of market evolution.
As Colton Clason’s analysis suggests, the prevailing PB model prioritizes “speed and imitation” rather than market creation. Its essence lies in eliminating intermediaries, reducing marketing expenses by relying on captive in-store audiences, and offering lower-cost alternatives to NB products.
This imitation-based approach carries three critical risks:
Lack of Differentiation
In an oversaturated pet food market, imitation alone cannot capture consumer attention. Without a clear value proposition beyond price, products risk becoming commoditized and invisible.
Weak Brand Equity and Overdependence on Store Traffic
A passive reliance on store traffic prevents the development of active brand preference. Without encouraging consumers to seek out the brand intentionally, true brand loyalty remains fragile. This vulnerability becomes evident when competitors introduce compelling innovations.
Exposure to National Brand Innovation
While NB continues investing in science-backed innovation and solution-oriented value creation, PB brands that merely imitate risk missing opportunities to address evolving consumer needs.
This vulnerability is clearly quantified by ADM research: 77% of global pet owners are willing to pay more for products offering functional benefits. This statistic highlights a substantial high-value segment that the current PB model is under-leveraging.
These structural limitations explain why PB often remains confined within the “low-price alternative” framework. Breaking through this ceiling is essential for entering the next growth stage.
Three Strategic Imperatives for Market Share Expansion
To overcome these limitations and capture emerging opportunities, we propose three strategic shifts. These moves enable PB brands to evolve from passive imitators into actively chosen brands.
From Imitation to Value Creation
The top priority is a decisive departure from simple product imitation. As Euromonitor reports, modern consumers expect added value.
PB must shift competitive focus from price to value by investing in innovation:
Science-Backed Functional Benefits
ADM research shows that 77% of pet owners are willing to pay more for functional nutrition. Leveraging this insight, PB brands should develop clinically supported formulas targeting digestive health, skin and coat condition, joint support, and other health outcomes. This repositioning shifts competition away from price and toward measurable functional benefits.
Distinct Sensory Experience
PB can establish differentiation by exploring areas not yet fully developed by NB—innovative flavors, unique textures, enhanced palatability systems, and experiential feeding concepts that enrich both pet enjoyment and owner perception.
Elevating Brand Perception Through Premiumization
Euromonitor data indicates that nearly three-quarters of consumers are concerned about rising everyday prices—yet they remain willing to spend for quality and convenience.
This suggests that PB must move beyond a purely low-price positioning. As Colton Clason notes, many store brands are adopting more premium packaging strategies to communicate quality and value.
Packaging is no longer just protective material—it is a strategic communication tool. Sophisticated design, high-quality materials, and clear articulation of product benefits elevate consumer perception and build trust.
Premiumization strengthens brand equity and positions PB as a flagship brand within the retailer’s portfolio.
Redefining the Value Proposition: Accessible Innovation
As Cascadia Capital highlights, consumers increasingly recognize that they can save without significantly compromising quality. This shift in mindset presents an opportunity to fundamentally redefine PB’s value proposition.
The traditional “cheaper than NB” positioning is no longer sufficient. The future belongs to “accessible innovation”—offering innovative, high-quality products at attainable prices.
By integrating product innovation with premium brand presentation, PB can transform from a substitute into a deliberately chosen, independent brand.
Conclusion: Strategic Direction for the Future
There is no doubt that current market conditions favor private labels. However, only those companies willing to abandon imitation and embrace innovation and value creation will achieve sustainable success.
The strategic foundation for long-term growth rests on three pillars:
- Product Innovation: Lead the market through science-backed functionality and differentiated value.
- Premiumization: Build trust and brand equity through packaging and quality positioning.
- Redefined Value Proposition: Evolve from “lower price” to “accessible innovation.”
The choice is clear: remain a passive follower within a framework defined by others, or become an architect of new value in pet nutrition.
This article serves as a blueprint for those committed to the latter.
Reference: Private label pet food growth beating out name brands