Private label brands have now outperformed national brands in the United States for 30 consecutive months in both dollar and unit sales, according to data compiled by Circana and published by the Private Label Manufacturers Association.
For the 52-week period ending March 23, 2025, store brands accounted for $217 billion in sales across all U.S. retail channels, including mass merchandisers, supermarkets, and club stores.
The total annual sales for private label brands reached a record $271 billion in 2024, with private labels achieving a 20.7% dollar share and a 23.1% unit share of the overall market.
This represents not just a quantitative increase but a structural shift in consumer preferences, indicating that private label brands have moved from being budget alternatives to credible, sometimes preferred, replacements for national brands.
Sector-Level Performance: Leading Growth Categories
Refrigerated foods led the charge in private label growth, with sales rising 11.5% year-over-year to reach $59.8 billion.
This increase highlights strong consumer demand for chilled, often perishable, products such as dairy, meats, and prepared meals—segments where quality and freshness are paramount and where store brands have increasingly competed effectively.
Beverages also recorded a notable 4.7% increase in private label sales. This reflects ongoing consumer openness to store-brand options in both shelf-stable and refrigerated drink categories, including juices, sparkling waters, and coffee.
Notably, in the same 52-week period, private label beverages also saw the largest increase in unit sales—up 4.6%—suggesting a growing volume of purchases rather than just inflation-driven dollar gains.
Frozen foods posted a 3.5% gain, suggesting that convenience and affordability continue to drive interest in this category. Home care products and pet care followed closely, with unit sales growing by 3.5% and 3.8%, respectively.
These gains underscore an emerging pattern in which private label brands are no longer confined to food and beverage categories but are expanding across household essentials and discretionary pet expenditures.
Economic Pressures and Consumer Behavior as Driving Forces
The continued inflationary environment has played a key role in boosting private label sales. As national brands increased prices to offset rising input costs, many consumers—particularly middle-income households—sought lower-cost alternatives without compromising perceived quality.
According to a 2025 consumer report by NIQ (formerly NielsenIQ), more than 80% of shoppers reported they were willing to try private label products if it meant saving money. This has turned economic adversity into a tailwind for private label expansion.
Another significant factor is the erosion of the quality stigma once associated with store-brand items. Historically viewed as lower-tier options, private labels have undergone a transformation over the past decade.
Retailers have invested heavily in product innovation, packaging, and marketing to improve quality and compete head-to-head with national brands. This evolution has translated into higher consumer trust.
Data from McKinsey & Company suggests that more than 70% of U.S. consumers believe store brands offer the same or better quality than national brands across several food and household categories.
Strategic Investments by Major Retailers
Retailers have not only responded to consumer demand but actively shaped it by strategically elevating their private label portfolios.
Walmart, for example, has aggressively expanded its Great Value line while simultaneously pushing more premium offerings under brands like Sam’s Choice. Target has similarly expanded its food and beverage presence with Good & Gather and its health and wellness footprint through the up & up brand.
These investments have included product development, revamped design, and enhanced shelf placement—all factors that boost visibility and credibility.
In the club store and discount retail channel, players like Costco (with its Kirkland Signature line) and Aldi have built entire brand identities around their private label programs. This has reinforced the notion that store brands are not just alternatives but core components of a retail offering.
According to a 2024 survey by Placer.ai, foot traffic to retailers with robust private label offerings has consistently outpaced those without, suggesting these lines serve as a draw for budget-conscious and quality-seeking consumers alike.
Market Outlook: Continued Growth and Expansion Ahead
Looking ahead, the outlook for private label remains bullish.
The PLMA projects that store brand sales will continue to grow at a compound annual growth rate of nearly 6% through 2030, potentially reaching $462 billion in annual revenue. This growth will likely be fueled by further retailer investment, rising consumer confidence in store brands, and ongoing inflationary or recessionary pressures that reinforce value-seeking behavior.
Additionally, as artificial intelligence and consumer analytics evolve, retailers are increasingly capable of fine-tuning their private label offerings based on detailed shopper behavior. This personalization, combined with speed-to-market advantages, could allow store brands to outmaneuver slower-moving national competitors.
Furthermore, growth is expected not only in traditional food and household segments but also in emerging sectors such as wellness products, sustainability-focused SKUs, and international cuisines.
The long-standing dominance of national brands is increasingly being challenged by agile, consumer-aligned store brands whose combination of price, quality, and brand equity continues to resonate across a widening array of categories.
