In 2025, store brand sales in the U.S. reached a record $282.8 billion, capturing 21.3% of the total grocery dollar share, according to Snipp. This milestone confirms a robust consumer shift towards private label brands, which also hold a 23.5% unit share across U.S. grocery. The significant growth in private label consumer trust, a key factor for market share in 2026, signals a deeper change in purchasing habits.
While private label growth is often attributed to economic downturns and price sensitivity, its sustained expansion increasingly stems from evolving consumer perceptions of quality and cultivated retailer loyalty, even as price sensitivity slightly wanes. This dynamic challenges the traditional view of private labels as merely budget alternatives.
Retailers are poised to further consolidate market power through their private labels, while national brands face an imperative to innovate and differentiate beyond traditional marketing to retain market share.
Market Share Expansion and Consumer Adoption
- Nearly half — of shoppers reported increasing their private brand purchases over the past year, compared to 31% who increased national brand purchases, according to Mass Market Retailers.
- 50% — unit share has been achieved by private label across France, Germany, Italy, the Netherlands, Spain, and the United Kingdom, as reported by Produce Business.
- 40% — of U.S. grocery shoppers actively switched from national brands to cheaper store brands in a March 2026 survey of 1,000 consumers, according to Snipp.
These figures confirm private labels are not just gaining ground; they actively outcompete national brands in growth and market penetration across major economies, directly influencing consumer switching behavior. The consistent increase in private label adoption, both in the US and globally, signals a lasting shift in consumer preference, not a temporary trend. This implies a fundamental re-evaluation of brand loyalty, where the retailer's brand now holds significant sway over traditional national offerings.
Evolving Drivers: Quality, Trust, and Retailer Loyalty
| Metric | 2025 | 2026 | Change |
|---|---|---|---|
| Shoppers prioritizing price | 66% | 49% | -17 percentage points |
| Shoppers prioritizing quality | N/A | 31% | N/A |
| Retailer private brand assortment importance | N/A | 56% | N/A |
Consumers increasingly view private labels as a key factor in their choice of retailer, prioritizing quality alongside value. This fundamentally shifts the competitive landscape. The decreased emphasis on price, paired with a rising focus on quality, suggests a sophisticated consumer who seeks overall value, not just the lowest cost. This trend implies that private labels are evolving from mere cost-savers to genuine brand contenders, demanding a strategic response from national brands.
Private Labels: A Mainstream Choice Across Income Brackets
New data challenges the perception of private labels as solely a budget-conscious choice. Compared to 2025, 44% of higher-income US shoppers (earning $5,000 or more per month) are buying more private label products, according to Simon-Kucher. This significantly outpaces the 34% of lower-income US shoppers increasing their private label purchases. This counterintuitive finding points to factors beyond mere cost savings, such as perceived quality, innovation, or convenience, driving private label appeal across the economic spectrum. The consistent adoption across income levels, particularly the significant increase among higher-income shoppers, signals a fundamental change in consumer perception and trust. Private brands are now a mainstream choice, reinforced by 42% of US shoppers predominantly or almost exclusively buying them—a figure unchanged from last year. This implies that private labels are no longer a fallback option but a preferred choice, even for affluent consumers, demanding a re-evaluation of market segmentation strategies.
Strategic Implications for Brands and Retailers
National brands can no longer rely on brand prestige alone; they must actively differentiate on value beyond price or risk losing their most lucrative customer segments.
- 44% of higher-income shoppers are increasing private label purchases, according to Simon-Kucher.
Even affluent consumers find compelling value in private labels. This forces national brands to articulate a clear, superior value proposition that extends beyond historical brand recognition. Failure to innovate and provide distinct advantages will erode market share among crucial demographics.
Private labels have evolved from mere product offerings into powerful loyalty drivers, forcing national brands to reconsider their distribution and marketing strategies.
- 56% of shoppers prioritize a retailer's private brand assortment when deciding where to shop, as reported by Mass Market Retailers.
Retailers are leveraging their private labels to build stronger customer relationships and differentiate their stores. National brands must therefore adapt by exploring new collaboration models with retailers or investing more heavily in direct-to-consumer channels to maintain visibility and connection with shoppers.
Companies that fail to invest in their private label offerings or adapt to this new value perception are ceding market share to retailers who are successfully building their own brand ecosystems.
- Private brand dollar sales increased by 2.8% year over year, surpassing national-brand growth, according to Mass Market Retailers.
The sustained outperformance of private labels in dollar sales makes further investment in store brands a strategic imperative for retailers. National brands, conversely, face the challenge of justifying their premium and demonstrating superior innovation to compete effectively against increasingly sophisticated, trusted private label alternatives.
If national brands fail to innovate beyond historical prestige and differentiate on value, they will likely cede further market share to increasingly sophisticated and trusted private labels by late 2026.
