January 26, 2026
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What Does the Future Look Like for Private Label?
According to a recent press released issued by the Private Label Manufacturers Association (PLMA), U.S. private label product sales topped $282.8 billion in 2025. That figure represents a significant 3.3% year-over-year increase versus 2024’s statistic, while also nearly tripling the gains made by national brand competitors (exhibiting much more modest growth of 1.2%).
“Store brands are outperforming national brands across the U.S., growing faster, expanding share, and delivering record-setting sales results,” PLMA President Peggy Davis said of the results.
And it wasn’t just sales that saw improvement, with private label unit volume improving by a slight 0.6% (or 434.3 million units) to a total of 68.7 billion units across the United States. This data draws further contrast when compared to national brand unit volumes, which declined by the same percentage (down 0.6%).
Other data, provided by Circana Unify+, drawn from the PLMA report:
- Concerning category unit sale gains: Pet care products led the charge, improving by 5.4% YoY; then liquor, up 4.4%; and then beverages, ticking upward by 2.3%. Frozen foods improved by 0.9%; refrigerated foods by a bit less, at 0.7%; and general food by only 0.2%.
- In terms of dollar sales, a total of seven different categories last year beat 2024’s results: Refrigerated improved by 6.1% in terms of private label revenue, followed by beverages at 4.8%; In third place was pet care (up 3.7%), then beauty at 2.8%; with frozen (2.4%), general food (1.6%) and general merchandise (up 0.9%) bringing up the rear.
Private label sales have been on a bit of a tear over the last few years, increasing in dollar sales by $64.8 billion — or just over 30% — over the past five years. Unit sales displayed less improvement (though still notable growth), improving by 2.7 billion units, or 4%, over the same time frame.
“Private label growth reflects a shift in consumer priorities, as retailer-owned brands increasingly compete—and win—on value, quality, health, and sustainability, not just price,” said Davies.
BrainTrust
Nicholas Morine
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Discussion Questions
What does the future look like for U.S. private label products? Are we nearing a peak of consumer interest, or will growth persist even when the economy improves?
Which standout private label products are you seeing driving the most consumer interest? Which familiar favorites may need a refresh?
Poll
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Private label is growing faster than mainstream retail and has been doing so for some time. That outperformance is set to continue for the foreseeable future, which will increase penetration. Part of the reason is that consumers can save money by switching. But it’s not just that: retailers are innovating more with private label and making better and more premium products. That’s also capturing attention and spend. Private label is no longer just about being the ‘cheaper’ alternative.
Private label will attract increasing share of sales as long as quality remains high and price pressures are significant.
I don’t think we’re at a peak in consumer interest for U.S. private label — even in an improving economy. What we’ve seen over the past several years is that private brands no longer function solely as “cheap alternatives”; they’ve become strategic value drivers that fulfill specific shopper needs around quality, trust, and differentiated value. In many categories, private label has moved beyond basic price competition to real category share creation, driven by better formulations, upgraded packaging, clearer value propositions, and placement strategies that elevate these products alongside national brands. As a result, private-brand momentum should continue even as economic conditions improve — because consumers have now come to expect strong private brand offerings as part of a comprehensive shopping experience, not just during downturns.
The products driving the most interest tend to be those that solve concrete consumer missions where the value equation is easiest to articulate: premium-style grocery essentials, better-for-you food and beverage items, household consumables with performance parity to national brands, and private label apparel basics that combine style with price confidence. In grocery, this has been evident in deli, dairy, and center-store staples, where private brand quality now rivals — and sometimes exceeds — that of national counterparts. In general merchandise, private label has also made inroads in the activewear and home categories, where design, fit, and curated assortments matter. These are the segments where shoppers feel they’re getting a good product without a premium price tag, and that emotional confidence underpins loyalty.
That said, some familiar private-label favorites could benefit from a refresh — especially when legacy packaging, outdated positioning, or inconsistent quality tarnish their value perception. Categories like canned goods, basic condiments, and commoditized consumables still offer opportunities for innovation, whether through updated branding, cleaner ingredient lists, or better storytelling that connects with how shoppers think about health and sustainability today. In my view, the future of private label will be defined not by price alone but by how effectively retailers invest in brand equity, differentiated value, and relevance that resonates with both existing loyalists and new adopters. The brands that win treat private label as a strategic growth engine, not just a margin lever.
Consumer awareness of which brands even are private brands has been dwindling for years. Now, consumers are giving a collective shrug when they do know. Amazon has helped this along with its marketplace stuffed to the brim with capitalized-consonant no-name brands across multiple categories.
Private brands aren’t going anywhere. They’ve been a lifeline as retailers navigated through multiple disruptions – from COVID-era supply chain snags to inflation, tariffs, and consumers’ expectations for extreme value. I don’t know that we have hit a peak in consumer interest so much as a retailer-driven saturation.
I give props to Walmart’s Bettergoods as a high-quality, differentiated brand that’s successfully wooing younger generations of grocery shoppers. Not an easy task, but Walmart nailed it.
Private Label will continue to gain share of basket from traditional CPG and consumer brands for at least the next several years. However, on an individual retailer level, this is contingent on the retailers’ not getting greedy and starting to sacrifice quality as well as expanding a recognizable PL name into areas that they have no knowledge in. The PL name is an asset to be cared for. Additionally, your article focuses on grocery and it is important to note that the same trends are occurring in clothing basics and everyday fashion. If you can win the consumer over with quality during budget crunching times in general they are going to stay loyal to what they like, and spend in other areas when discretionary spending gains a little.
What Does the Future Look Like for Private Label?
Bright
This is what we like: accurate and straight to the point and not generated by AI (I think)…
Thank you. I has a long spiel at the ready ranking the luminosity from
blinding (commodities like beans, rice, etc.) to feebly aglow (customized products like sauces) but. hey, it’s Monday!
Private label isn’t just winning on price anymore. Shoppers are increasingly choosing store brands because the quality gap has narrowed and, in some cases, disappeared. With that shift in how value and quality are perceived, private label growth looks promising.
If you don’t own a brand (that consumers want) then best of luck gaining your differentiation on price, place or service.
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Private label is growing faster than mainstream retail and has been doing so for some time. That outperformance is set to continue for the foreseeable future, which will increase penetration. Part of the reason is that consumers can save money by switching. But it’s not just that: retailers are innovating more with private label and making better and more premium products. That’s also capturing attention and spend. Private label is no longer just about being the ‘cheaper’ alternative.
Private label will attract increasing share of sales as long as quality remains high and price pressures are significant.
I don’t think we’re at a peak in consumer interest for U.S. private label — even in an improving economy. What we’ve seen over the past several years is that private brands no longer function solely as “cheap alternatives”; they’ve become strategic value drivers that fulfill specific shopper needs around quality, trust, and differentiated value. In many categories, private label has moved beyond basic price competition to real category share creation, driven by better formulations, upgraded packaging, clearer value propositions, and placement strategies that elevate these products alongside national brands. As a result, private-brand momentum should continue even as economic conditions improve — because consumers have now come to expect strong private brand offerings as part of a comprehensive shopping experience, not just during downturns.
The products driving the most interest tend to be those that solve concrete consumer missions where the value equation is easiest to articulate: premium-style grocery essentials, better-for-you food and beverage items, household consumables with performance parity to national brands, and private label apparel basics that combine style with price confidence. In grocery, this has been evident in deli, dairy, and center-store staples, where private brand quality now rivals — and sometimes exceeds — that of national counterparts. In general merchandise, private label has also made inroads in the activewear and home categories, where design, fit, and curated assortments matter. These are the segments where shoppers feel they’re getting a good product without a premium price tag, and that emotional confidence underpins loyalty.
That said, some familiar private-label favorites could benefit from a refresh — especially when legacy packaging, outdated positioning, or inconsistent quality tarnish their value perception. Categories like canned goods, basic condiments, and commoditized consumables still offer opportunities for innovation, whether through updated branding, cleaner ingredient lists, or better storytelling that connects with how shoppers think about health and sustainability today. In my view, the future of private label will be defined not by price alone but by how effectively retailers invest in brand equity, differentiated value, and relevance that resonates with both existing loyalists and new adopters. The brands that win treat private label as a strategic growth engine, not just a margin lever.
Consumer awareness of which brands even are private brands has been dwindling for years. Now, consumers are giving a collective shrug when they do know. Amazon has helped this along with its marketplace stuffed to the brim with capitalized-consonant no-name brands across multiple categories.
Private brands aren’t going anywhere. They’ve been a lifeline as retailers navigated through multiple disruptions – from COVID-era supply chain snags to inflation, tariffs, and consumers’ expectations for extreme value. I don’t know that we have hit a peak in consumer interest so much as a retailer-driven saturation.
I give props to Walmart’s Bettergoods as a high-quality, differentiated brand that’s successfully wooing younger generations of grocery shoppers. Not an easy task, but Walmart nailed it.
Private Label will continue to gain share of basket from traditional CPG and consumer brands for at least the next several years. However, on an individual retailer level, this is contingent on the retailers’ not getting greedy and starting to sacrifice quality as well as expanding a recognizable PL name into areas that they have no knowledge in. The PL name is an asset to be cared for. Additionally, your article focuses on grocery and it is important to note that the same trends are occurring in clothing basics and everyday fashion. If you can win the consumer over with quality during budget crunching times in general they are going to stay loyal to what they like, and spend in other areas when discretionary spending gains a little.
Bright
This is what we like: accurate and straight to the point and not generated by AI (I think)…
Thank you. I has a long spiel at the ready ranking the luminosity from
blinding (commodities like beans, rice, etc.) to feebly aglow (customized products like sauces) but. hey, it’s Monday!
Private label isn’t just winning on price anymore. Shoppers are increasingly choosing store brands because the quality gap has narrowed and, in some cases, disappeared. With that shift in how value and quality are perceived, private label growth looks promising.
If you don’t own a brand (that consumers want) then best of luck gaining your differentiation on price, place or service.