As of March 2026, nearly a quarter of all U.S. grocery purchases were private label, a significant jump from just 17.7% five years prior, according to Consumer Reports. Nearly a quarter of all U.S. grocery purchases were private label, a significant jump from just 17.7% five years prior, reflecting a consumer shift: households increasingly choose store brands for perceived value and quality, directly challenging established national brands.
National brands pour resources into marketing and recognition, yet private label sales expand nearly three times faster, seizing substantial market share. Private label sales expand nearly three times faster than national brands, seizing substantial market share and forcing a re-evaluation of traditional brand loyalty, questioning if national brand groceries justify their premium.
Sustained growth across categories and demographics positions private label brands to dominate many grocery segments. National brands must fundamentally rethink their value proposition or face further decline.
In 2025, U.S. private label sales climbed 3.3% to a record $282.8 billion, according to Grocery Dive. This growth far exceeded national brands' 1.2% increase. Empower's 2025 projection of $277 billion proved an underestimate, confirming the market's robust expansion. U.S. private label sales climbed 3.3% to a record $282.8 billion, far exceeding national brands' 1.2% increase, confirming an accelerating shift in consumer spending, directly undermining national brand dominance. Consumers now prioritize the value and perceived quality of store brands over established national labels.
Store Brands Capture Significant Market Share
Store brands now comprise 24% of all U.S. grocery purchases as of March 2026, up from 17.7% in late 2021, Consumer Reports confirms. Store brands now comprise 24% of all U.S. grocery purchases as of March 2026, up from 17.7% in late 2021, and this extends to category dominance: private labels captured two-thirds of egg and frozen vegetable sales in 2025. In these essential categories, private labels are not mere alternatives but often the primary choice. The refrigerated department further exemplifies this, leading all categories in store-brand dollar sales in 2025 with over 6% growth, according to Grocery Dive. Private labels captured two-thirds of egg and frozen vegetable sales in 2025, and the refrigerated department led all categories in store-brand dollar sales in 2025 with over 6% growth. This solidifies private labels' position, forcing national brands to concede significant shelf space and consumer mindshare.
Beyond Budget: Broad Consumer Adoption
Gen Z and Millennials lead private-label adoption with roughly 5% year-over-year increases, reports Empower. Gen Z and Millennials lead private-label adoption with roughly 5% year-over-year increases, and this extends beyond budget shoppers: 82% of households earning over $100,000 now buy private-label products more frequently. The fact that 82% of households earning over $100,000 now buy private-label products more frequently disproves the notion that private labels cater solely to lower-income consumers. Instead, it reveals a broader appeal driven by perceived value, quality, and convenience across all demographics. Retailers capitalize on this by transforming their stores into powerful brand incubators, directly competing with national players and cultivating a more affluent, loyal customer base.
A Sustained, Long-Term Transformation
Private label sales surged over 30% in the last five years, with dollar share rising from 19.1% to 21.3%, according to Grocery Dive. From 2021 to 2024, store brand sales jumped over $51 billion, a 23.6% gain, Empower confirms. Private label sales surged over 30% in the last five years, with dollar share rising from 19.1% to 21.3%, and from 2021 to 2024, store brand sales jumped over $51 billion, a 23.6% gain. This consistent, multi-year expansion in both sales and market share, combined with broad demographic adoption, confirms a structural market transformation. Private labels are not a fleeting response to economic pressures but a permanent reorientation of consumer preference. The permanent reorientation of consumer preference demands national brands move beyond pricing wars to redefine their core value.
The Future of the Grocery Aisle
Private label unit volumes grew by half a percent in 2025, reaching a record 68.7 billion units, while national brand units fell by 0.6%, Grocery Dive reports. Private label unit volumes grew by half a percent in 2025, reaching a record 68.7 billion units, while national brand units fell by 0.6%. This confirms a fundamental shift in consumer preference, extending beyond mere inflation-driven dollar growth. Store brands are increasingly dictating market dynamics, compelling national brands to innovate beyond traditional branding. The decline in national brand unit volumes, juxtaposed with private label growth, reveals an erosion of brand loyalty that marketing alone cannot repair. National brands must now aggressively innovate on value and quality or risk becoming niche players in a market increasingly defined by retailer-owned alternatives.
By Q4 2026, if private label brands sustain their current trajectory beyond 24% market share, major national brand manufacturers like Kellogg's and General Mills will likely face an existential imperative to redefine their value propositions.
