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TreeHouse Foods, a leading manufacturer of private-label products for major retailers like Walmart and Trader Joe’s, is now feeling the pinch, according to a report by The Wall Street Journal.
After initially benefiting from consumers shifting toward budget-friendly options, TreeHouse is now seeing slower sales growth as rising costs for essentials like coffee and eggs impact spending, the outlet said.
Once a growth driver, private-label sales are now slowing.
In the last quarter, unit sales in key categories like cookies and crackers rose just 0.6 percent, compared to a 4.5 percent jump a year earlier, the report said.
Overall food prices are anticipated to rise slightly faster than the historical average rate of growth in 2025, according to the USDA, which predicts:
- Prices for all food are predicted to increase 3.4 percent, with a prediction interval of 1.1 to 5.9 percent.
- Food-at-home prices are predicted to increase 3.3 percent, with a prediction interval of -0.2 to 7.0 percent.
- Food-away-from-home prices are predicted to increase 3.4 percent, with a prediction interval of 2.1 to 4.7 percent.
Skyrocketing egg prices, meanwhile, are providing a regular dose of sticker shock for shoppers.
The price of a dozen eggs, at around $5 on average, is up nearly 100 percent from last year.
Egg prices in January 2025 were 53 percent higher than in January 2024 and surpassed the previous peak prices in January 2023.
Retail giants are responding by expanding their store-brand lines, yet the appetite for private-label goods appears to be diminishing as consumers navigate these challenging economic conditions.
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