A new study from IRI found that small and extra-small CPG manufacturers’ and retailers’ own brands gained US market share over larger players during 2020.
According to the report, smaller manufacturers gained market share in nine out of 10 departments, except for the home care department. Smaller manufacturers accelerated their shares in beverage alcohol, frozen food and center store food categories with products that catered to distinct needs, even as consumers sought variety and change of pace. Additionally, as consumers spent more time at home, small manufacturers in breakfast categories, frozen fruit, snacks and shelf-stable products saw growth.
The consumer shift toward smaller manufacturers and private label products is something that IRI has been documenting for several years, and we saw the trend accelerate during the COVID-19 pandemic,” Dr. Krishnakumar S. Davey, president of Strategic Analytics for IRI explained. “Many large manufacturers were not able to meet the surge in demand caused by the COVID-19 pandemic in the second quarter when they lost most share to smaller players who seized on this opportunity. Several brands attracted a number of new buyers as in-home consumption surged. Large manufacturers fared relatively better in the third quarter, but still lost significant share (-1.3 points vs. year ago as compared vs. -1.9 share points vs. year ago in the second quarter). The fourth quarter saw some improvement and reversion to historical trends (-0.8 points vs. year ago).”