(June 2024)
Key Takeaways
Private label manufactures have experienced record growth in 2024, driven by increased demand from retail private label partners and a focus on high-quality products
Strategic partnerships have enabled manufacturers to provide top-tier quality products at a more approachable cost compared to national brands, leading to market share gains for retailers
Private label manufacturers have been forging strategic partnerships with dynamic suppliers across categories that drive in-store foot traffic. Wise pet owners have realized private label items are synonymous with dependable and top-tier quality at a more approachable cost compared to national brands. As private label manufacturers continue to apply the same attention to detail and level of effort to their retail customers’ own brand lines, these manufacturers validate the adage: you can’t judge a book by its cover.
“There continues to be growth opportunities in the pet supplement space,” said Amy McCarthy, VP, ADM Pet Nutrition. “More and more companies are wanting to bring a functional product to pet owners who are taking a more proactive approach to their companion’s health and wellness. It’s exciting to work with new customers and bring their innovative ideas on ingredients and concepts to life. We are also able to bring our human insights to customers as an indicator of what is to come in pet supplements. A recent ADM Outside Voice global survey finds 72 percent of US pet owners are interested in buying pet health supplements in the future.”
“2024 has been a record growth year-to-date for Phelps Pet Products and this has been driven both by increased demand from our retail private label partners, as well as greater utilization of our new 178,000-square-foot facility in Janesville, WI,” said President and CEO Rick Ruffolo. “The new facility enables Phelps to provide our customers with unsurpassed variety in treat shapes, sizes and recipes. Additionally, we are seeing market share gains for retailers as they expand and bring innovation to their private label offerings. This trend seems to have had the most impact on some of the larger national brands as they struggle to find meaningful innovation to justify their price premium relative to the retailer’s ‘own brand’ assortment. We also have seen growth with brands we partner with who have a clear differentiated positioning such as USDA Organic, 100 percent plant-based, made with certified upcycled ingredients, or other clean-label, nutrition-conscious recipes.”
Alphia has seen success this year due to our unwavering commitment to manufacturing high- quality pet food products with food safety as our top priority,” explained CEO Dave McLain. “Looking ahead, we are focused on partnering with our customers to drive costs out of formulas while remaining agile and responsive to industry trends and consumer demands.”
“2024 has been a dynamic year for Oil-Dri Corporation of America, particularly within the private label pet category,’ said Leah Craft, Brand Manager. “We have experienced several notable wins, including gaining new distribution channels and deepening our relationships with key retailers. We greatly appreciate the continued support and collaboration from our retail partners, which has been instrumental in expanding our market presence. A major highlight this year has been our acquisition of Ultra Pet, a pioneer and value leader in the crystal litter segment. This acquisition allows us to expand our product offerings with a wide range of complementary lightweight crystal litter in both private label and branded assortments. Ultra Pet’s expertise and innovative products enable us to tap into the rapidly growing demand for crystal litter, known for its superior odor control and long-lasting effectiveness. This move strengthens our market position and provides significant value to our retail partners.”
“We are proud to be one of the largest cat litter manufacturers in North America offering a highly differentiated portfolio of lightweight litter products,” Craft continued. “Our leadership is underscored by our history of innovation. In 2011, Oil-Dri invented lightweight litter; which has significantly benefited both people and the planet. Our innovative lightweight product allows us to fill a truck without hitting its weight limit, resulting in more units on a truck and thus fewer trucks on the road and reduced CO2 emissions.”
To help offset rising costs of conducting business, Alphia is balancing two seemingly mutually exclusive ideas: providing fair and reasonable prices without cutting corners on quality. At Alphia, our purchasing team excels in collaborating closely with our ingredient suppliers, ensuring we monitor ingredient costs without compromising on quality;’ McLain said. “We are dedicated to least-cost formulation projects, guaranteeing our customers have the right ingredients in their formulas while maintaining our high standards.”
“Managing higher costs of materials and production is a significant focus for Oil-Dri,” Craft said. As a vertically integrated American company, we have the advantage of controlling various stages of our supply chain, from raw material extraction to finished product manufacturing. This integration helps us better manage costs and ensure consistent quality, allowing us to offer greater value to our retail partners and consumers.”
This year; private label manufacturers are seeing record growth and attribute this boon to the category to rising demand from retail private label partners and consumers who value top-tier products. Partnerships across categories forged with influential suppliers is proving vital to the health of the private label space. These alliances and shared goal of providing high quality at approachable prices has been fortuitous to the retailers these manufacturers serve.