The United States (U.S.) has been Malaysia's third-largest trading partner since 2015, with total trade between the two countries amounting to RM324.91 billion in 2024. Recently, the U.S. has imposed tariffs on China, Mexico, and Canada to address the threat posed by trade deficits in goods, and to manage the economic and national security implications. Under this trade policy, a 25 percent tariff is applied to all products from Mexico and Canada, with an additional 10 percent tariff imposed on products from China on top of existing tariffs.

Malaysian companies seeking to enter the U.S. market need to ensure that they have acquired the necessary certifications and incorporate Environmental, Social, and Governance (ESG) considerations into their sustainability practices. Exporters should also aim to maximise production capacity and minimise lead times, as the U.S. represents a large and competitive market and huge orders are expected. In addition, participation in trade fairs, conferences, and other relevant activities is essential for increasing visibility and establishing a presence in the market.

It is challenging to sustain in the U.S. market, particularly for companies with their own brand. However, companies offering private label services only need to focus on promoting their capabilities, as the promotion of the product itself will be managed by the brand owners. Malaysian companies must also ensure they maintain proper record-keeping practices, as they may be required to provide relevant information in the event of customs or shipment detainments.

In the U.S., private label brands are no longer perceived as budget alternatives, but have evolved into market leaders, representing product diversification, global sourcing, and sustainability. American consumers now recognise private label brands as offering quality products at sensible prices. There are four tiers in private labels, which includes premium tier, lifestyle tier, mainstream or national brand equivalent tier, and value tier. Malaysian companies are advised to target the premium and lifestyle tiers, which are associated with higher-quality products compared to the other categories.

The U.S. private label market has experienced significant growth over the past decade, with total sales reaching $271 billion in 2024. Between 2020 and 2025, private label sales in the U.S. are projected to reach approximately $219 billion, with a compound annual growth rate of 5.5 percent. Trends in the private label sector mostly includes products in the food and beverage sector, such as refrigerated foods, general foods, frozen foods, and beverages.

For enquiries, please contact:

MATRADE New York
Nyaee Ayup, Trade Commissioner
E: This email address is being protected from spambots. You need JavaScript enabled to view it.

References
MATRADE Webinar (Tapping Into US Private Label Market)