The private-label food and beverage market in the U.S. is expected to grow at a CAGR of 2.95% through 2020, according to the report "Private-label Food and Beverages Market in the US 2016-2020" by Research and Markets (researchandmarkets.com) 

The report covers the present scenario and the growth prospects of the private-label food and beverage market in the U.S. for 2016-2020. To calculate the market size, the report considers the revenue generated from the retail sales of various private-label food and beverage products to individual consumers in the US is considered. The report also includes a discussion of the key vendors operating in this market. 

According to the report, vendors are becoming more recognized as brands, promoting their private-label products as alternatives to national brands. Due to the attractiveness of the market and high sales coming from private brands, large retailers are now increasing private-label brand offerings. 

The packaging of products is a major factor that is carefully looked upon by brand manufacturers to create differentiation. Various private-label store brands have been focusing on packaging innovations to compete with store brands as packaging innovation key to upgrading brand image. Retailers are developing unique packaging designs, bringing more color and personality to their products. Artistic photographs and vibrant colors are often used to make the product stand out on the shelf. 

Further, the report states that one of the major challenges to the private labels is the presence of national brands in the market with wide product ranges. National brands have a wide customer base and high brand awareness; company goodwill plays a significant role while choosing a product.