FMI Report: Ecommerce Fueling Growth and Innovation in Private Brands

Online expansion takes private brands to new heights

Arlington, VA - Today, FMI - The Food Industry Association released its latest report, The Power of Private Brands 2025:

Industry Strategies to Sustain Momentum , revealing how ecommerce is reshaping food retail private brands and how food retailers are leveraging digital tools to differentiate, build shopper loyalty and grow sales.

Among the report's standout findings: nearly 85% of private brand assortments are now available online, reflecting a sharp increase in digital accessibility. Food retailers continue to expand their private brand ecommerce strategies, recognizing that online growth will likely outpace in-store sales. In 2024 alone, private brand online sales grew by 5.2%, with 9.3% of private brand sales now conducted online.

"The growth of ecommerce has opened new avenues for private brands to thrive," said Tom Cosgrove, director of industry relations at FMI. "Retailers are not only expanding their online private brands assortments but also innovating how they engage with consumers digitally. This is a pivotal shift for the food retail private brands industry."

Revealed in this latest operations analysis, food retail private brand professionals are also doubling down on strategies to build shopper interest and loyalty. Nearly half of survey respondents said they are well along in leveraging private brands as a key differentiator, up from just over one-third last year.

"Companies are emphasizing both in-store and online marketing to meet shoppers where they are," said Steve Markenson, vice president of research and insights at FMI. "Sixty percent of survey respondents indicated they plan to enhance their private brand marketing, and 29% responded that they are enhancing online shopping/omnichannel. Social and digital media remain central to reaching younger consumers, while food retailers pursue multiple approaches to spotlight private brands in ecommerce."

As online visibility becomes more critical, brands are enhancing product images, ensuring strong search performance, and enabling seamless access to information, all to make the digital shelf more impactful.

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