THE share of private-label supermarket products is expected to increase in the next five years to $31.8 billion, a rise of nearly 50 per cent.

IBISWorld General Manager Karen Dobie said more Australians are expected to buy private labels to make their dollars go further in light of mounting concerns about the cost of living.

Ms Dobie said the recessive economic climate has been a strong driver of private-label growth with households reining in spending, paying off debt and increasing savings.

She said private-label products have been one of the supermarket industry's fastest growing segments, increasing from just 13.5 per cent or $9.96 billion of total supermarket sales in 2007-08 to $19.7 billion in 2011-12.

IBISWorld is tipping private-label sales of groceries will hit $21.6 billion in 2012-13, nearly 25 per cent of the total $85.9 billion spent on groceries.