9 years ago private labels, CBD products, and plant based foods were science fiction.
Today, these products are reality.
In that time online orders were just becoming popular, and while private labels were around, they were a sideshow and not the main attraction.
As time and technology evolve, so do industry trends. Here are some trends to look at that have come to stay for 2020.
Private Label Power – Stores like Walmart are evolving from selling just brands, to becoming a brand. The Private label products made by Walmart, called the Equate brand are now producing many different consumers products. These products are items like Allergy and Sinus medicine, pain relief pills, ibuprofen, hair care, first aid, vitamins, eye care, oral care, digestive medicine, body care, and soap to name a few.
Costco also has a private label company under the name of “Kirkland”. Valued at $75 billion, this private label brand is not playing around. These private label products can be anything from mixed fruit and peanut snacks, to vitamin water, and paper towels. Trader Joes also fills their shelves with private label products.
The main reason big box retail stores are now diving into the private label business is because these products create on average a 25% - 30% profit margin. Selling third party food products and consumer goods gives retailers a 1% or 2% profit margin.
One should expect the private labels business to keep growing, as retailers are searching to make more profits, and seek consumer loyalty. Private labels extend far into the food and beverage industry. These private label products are expanding into frozen food, plant based foods, and prepared food meals. While the stores are outsourcing these manufactured products to be made, they will also grow their own brand and stores. By 2023 the private labels business is expected to grow from a minority, to a majority.
CBD Products – CBD labels and products have come under scrutiny recently as many reports have shown the products with 0mg of the ingredients they are advertising. CBD is currently regulated by the states, making things even more confusing for consumers. But many Food and Beverage companies are investing in, and releasing products with CBD in them. These new CBD products come in the form of tea, candy, lotions, oils, and more. But new coming government laws and regulations nationwide are sure to change that. These laws will aim to fix much confusion in the cbd industry, set new high quality standards for products, and stop counterfeit products. These new laws will be good for consumers, providing them with safety and quality standards. We predict these changed will take effect in 2022 for cbd food and drinks.
- Plant Based Foods – Plant based foods were something you could only find in a science fiction movie years ago. Today plant-based foods are here to stay. These plant based products are more sustainable, and do not hurt animals. Something that is important to younger generation Americans. Custom labels for plant based foods will be another trend in the next few years, or longer as consumers are not letting go of this trend anytime soon it seems. The meat industry is pushing back hard on plant based meats as of recently, possibly to protect their profits that plant based foods could take. They are seeking to control the words on meat labels and other poultry labels. Meat companies want Congress to force plant based manufacturers to label their products as “Alternative meat” as opposed to “meat”. Meanwhile Americans are eating more and more plant based foods. Plant based manufactures like Impossible Foods and Beyond meat are driving the trend and expanding fast. We predict there will be clarity on plant based food labels by the end of 2020.