U.S. private-label sales reached a record USD 282.8 billion in 2025, rising by more than USD 9.0 billion from the previous year, according to Sphericalinsightslion from the previous year, according to Sphericalinsights. The surge in private-label sales confirms a fundamental shift in consumer purchasing, with store brands now dominating a growing segment of the retail market. Shoppers are fundamentally altering how they fill their carts.
Traditional Consumer Packaged Goods (CPG) brands have invested decades cultivating consumer loyalty. Yet, shoppers are rapidly shifting their purchasing towards private labels. This directly challenges established brands, as their long-standing market positions now face intense competition from retailer-owned alternatives. Brand loyalty and market share are under direct threat.
The rapid expansion of private labels presents an existential threat to traditional CPG brands. They must fundamentally re-evaluate market strategies and value propositions to remain competitive. This is not a mere trend; it is dismantling brand loyalty, forcing CPGs into difficult choices: engage in price wars or pursue niche specialization.
Private label sales grew 3.3% year over year in 2025, reaching a record $283 billion, Packaging Dive reported. The 3.3% growth in private label sales outpaces the overall retail food and beverage CPG market growth of 3% in 2025. The implication is stark: established CPG brands are effectively starved of organic growth. They now compete for a shrinking slice of the pie, rather than benefiting from market expansion. The competition for a shrinking slice of the pie intensifies pressure on traditional brands to find new avenues for value.
The Unstoppable Rise of Store Brands
Private label products now command a 50% unit share across France, Germany, Italy, the Netherlands, Spain, and the United Kingdom, according to Produce Business. The 50% unit share of private label products in mature European markets demonstrates sustained market penetration. The consistent year-over-year increase in private label unit share since 2021, rising by over three percentage points, confirms a permanent shift in consumer purchasing. The consistent year-over-year increase in private label unit share suggests a future where brand loyalty, once paramount, holds diminishing sway.
