• As retail prices rise, private label coffee – produced by a third-party roaster but sold under a different brand name – is becoming more popular.
• A recent US study reveals that over the past four years, private brand sales have increased by nearly a quarter each year, hitting a record high in 2024.
• With coffee prices staying high and volatile, private label products could be an effective way forward for coffee shops and other hospitality businesses. They offer consumers better value for money and greater variety, while also providing retailers with exclusive products, lower costs, and the ability to build customer loyalty.
• But businesses need to work with trusted suppliers that can manage complex manufacturing and distribution logistics to find success.

Private label coffee – produced by one roaster to be sold under another brand – has always been popular. But as coffee prices stay high and volatile, more consumers are seemingly switching to these products to adapt.

According to NielsenIQ, private label sales across 17 European markets reached €352 billion (US$406 billion) in 2024, and data suggests that this trend will continue.

For coffee businesses, exploring opportunities to expand their retail offerings through private label partnerships could prove effective. But working with a trusted supplier that prioritises quality and brand identity is essential.

I spoke with Ethan Oakes at Fresh Roasted Coffee to learn more about what brands need to know about selling private label coffee.

You may also like our article on why roasters should consider diversifying beyond coffee.

Why private label coffee is becoming more popular

Put simply, private label coffee is prepackaged roasted coffee that suppliers sell to buyers. The coffee is branded for the buyers, who sell it to consumers as their own product. 

For the former, especially smaller operations, this is a more affordable and efficient alternative to sourcing, roasting, and packaging their own coffee. Meanwhile, for the latter, offering private label roasting services allows them to expand their business into a new revenue stream that is popular among consumers.

Historically, private label coffee has been positioned as a lower-cost alternative to branded products, offering better value for money at a similar level of quality. Because of this, private label sales often increase during periods of economic downturn and instability.

In early 2020, during the height of the pandemic, for example, overall private label sales in the US increased by 15%, surpassing national brand growth by 33%. With economic uncertainty and a cost-of-living crisis driving consumer choices, people were more willing to turn to private label products for the discounts they offer.

Following Covid-19, as global inflation rates have remained high, the trend towards private label products has remained steady. Recent data from McKinsey suggests nearly 75% of US consumers and almost 85% of European consumers say they are “trading down” when shopping – and switching to private-label brands accounts for a quarter of this behaviour.

Offering quality and value

However, the concept of “trading down” is also changing as the perception of quality improves. The same research shows that more than 80% of US consumers rate the quality of private brand food products as either the same as or better than that of national brands. Over 80% of European consumers also perceive the quality of private brand offerings as equal or superior to branded products.

As the coffee industry navigates one of its most turbulent periods in recent history – grappling with sustained high green coffee prices that have more than doubled over the last two years – interest in private label coffee is rising. 

“We’ve seen retailers and brands turn to private label coffee more than they ever have in the past,” says Ethan, the head of co-packing and private label sales at Fresh Roasted Coffee, a leading wholesale, co-packing, and private label services supplier, established in 2009.

“As green coffee prices have remained high, private label provides a way for retailers to deliver quality coffee to their customers at competitive price points without sacrificing margin,” he adds.

Many roasters and coffee businesses have had little choice but to raise their retail prices as green coffee and operating costs soar. Although consumption levels remain steady, consumers are inevitably changing their buying habits to adapt to rising prices.

“Consumers are increasingly value-conscious, but they’re not willing to compromise on taste or quality,” Ethan says. “Private label coffee allows them to access premium-quality coffee at more affordable prices, making it a natural choice during times of economic uncertainty.”

How private label services are creating new opportunities for coffee brands

The coffee industry is navigating one of its most turbulent periods in recent history. Record green coffee prices – driven by unfavourable weather and ongoing supply shortages in Brazil and Vietnam – have coincided with rising inflation and high interest rates. This has created a perfect storm of challenging market conditions for producers, traders, and roasters alike.

Political volatility and ongoing trade tensions have also added further layers of complexity. US President Donald Trump’s decision to roll out sweeping tariffs earlier this year – including a staggering 50% on Brazil – is reshaping global coffee trade as we know it.

As coffee businesses grapple with these challenges, the need to differentiate and secure new revenue streams becomes all the more important. Given its significant market growth and the increasing consumer perception of value and quality, selling private label coffee is emerging as an effective way to stand out and adapt.

Ethan highlights some of the benefits that selling private label coffee products offers:

• Stronger brand identity by offering new products
• Improved customer loyalty, as consumers associate quality and consistency with their café or brand
• Increased margins and flexibility compared to national brands that have to handle the logistics of sourcing, roasting, and packaging coffee
• Control over product formats, flavour profiles, and sustainability claims that align with brand identity
• Ability to move quickly and follow trending flavours or products, such as capsules or single-serve bags

Working with a trusted partner

Initiating the process of selling private label coffee can be somewhat overwhelming. Today’s specialty coffee landscape is highly competitive, with new processing methods, flavour profiles, and quality standards driving consumer behaviour.

By working closely with established private label roasters, brands can take advantage of these emerging trends, helping them stay current with market developments while deepening their understanding of the coffee industry’s supply chain.

“A brand should understand its goals for quality and sustainability,” Ethan explains. “It’s important to choose a manufacturer who can deliver on those standards consistently, has the capacity to scale, and offers flexibility in packaging and formats.

“Developing a coffee programme requires more than just roasting beans; it takes experience, infrastructure, and a proven track record,” he adds. “At Fresh Roasted Coffee, we bring that to the table through a collaborative approach.

“We ensure that our partners’ products meet the highest standards while reflecting their unique brand identity.”

What brands need to know about private label coffee

Once known for being the budget-friendly choice, private label coffee is gaining traction as quality, sustainability, and value increase. Retailers are no longer just filling gaps; they are actively innovating in premium and niche segments like wellness, sustainability, and convenience.

This means that selling private label coffee is about more than just liaising with a supplier and applying your logos to packaging. It’s also about aligning your brand values with the priorities of a trusted supplier.

The first step in the process is finding a roaster who can accommodate your vision and goals. Executing this level of service often isn’t as straightforward as it seems; it requires a roasting partner which has the expertise and capacity to guarantee long-term success.

“We source coffee responsibly from origins around the world, roast with precision using state-of-the-art equipment, and maintain rigorous quality controls throughout packaging and fulfilment,” says Ethan. “Every step, from green coffee to finished product, is designed to preserve freshness, flavour, and consistency.”

Relying on a private label roasting partner to deliver the necessary quality standards demands mutual trust, as consistency and dependability are essential to growing a business.

“We take the time to understand each client’s brand identity, product goals, and packaging preferences,” Ethan tells me. “By aligning with their specifications and working closely throughout the process, we ensure that the finished product reflects their brand consistently and accurately.”

Prioritising sustainability

NIQ data shows that 53% of global shoppers say they’re buying more private label products, including coffee, than ever before. Other research, meanwhile, shows that 57% of consumers are open to changing their buying behaviour to minimise their environmental impact. This means that outlining and improving sustainability efforts for the private label coffee sector is no longer important – it’s a prerequisite for success.

Certifications have emerged as a powerful, trusted way to demonstrate commitment to organic farming practices and other environmental and social concerns.

“We offer a wide range of certified coffees, including Fair Trade, Organic, and Rainforest Alliance,” Ethan explains. “Beyond certifications, we focus on responsible sourcing, efficient production practices, and sustainable packaging options such as compostable and recyclable formats.

“At Fresh Roasted Coffee, sustainability is woven into everything, from sourcing responsibly and offering certified coffees to investing in renewable energy through our onsite solar array, which powers much of our production facility,” he adds. “This commitment ensures that our partners can grow their private label programmes with confidence, knowing that environmental responsibility is a priority.”

In an increasingly competitive landscape, private label coffee offers brands a chance to build customer relationships, enhance brand identity, and deliver quality products.

But when taking on this new venture, the key to success lies in choosing a roasting partner who understands your goals and shares your commitment to sustainability, quality, and innovation.

By leveraging the infrastructure and expertise of experienced roasters, brands can enter the coffee space with products that reflect their values and resonate with their customer base.

Enjoyed this? Then read our article on whether consumers will favour local roasters as retail prices rise.

Photo credits: Fresh Roasted Coffee

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Please note: Fresh Roasted Coffee is a sponsor of Perfect Daily Grind.

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