The reality: Consumers no longer view private label products as just budget-friendly alternatives—they increasingly see them as high-quality, differentiated options.

• 3 in 4 (75%) consumers say private labels offer good value, and 72% see them as strong substitutes for national brands, per a NielsenIQ consumer survey.
• Perhaps most telling, 59% say they’d buy more private label products if a wider variety were available—highlighting both demand and opportunity for retailers to expand their store-brand offerings.

The opportunity: Grocers are increasingly leaning into private labels to meet rising consumer demand for both value and innovation.

• Kroger, for example, plans to launch more than 900 private-label products this year. Just last month, it rolled out a slate of trend-forward items like instant mushroom tea and Hatch Chile kettle-style tortilla chips. It also recently launched a limited-time Private Selection Cherry Harvest collection—featuring foods, beverages, and flowers inspired by TikTok’s “cherry red” aesthetic—demonstrating how private labels can deliver both affordability and cultural relevance.
• Sprouts Farmers Market’s efforts to expand its private mix with additions like grass-fed beef meatballs and the premium Real Root line of health and beauty products helped drive owned-brand penetration to 24% of total sales in Q1, up from 21% a year ago.
• Albertsons marked the arrival of spring with several limited-edition, lemon-inspired food and beverage products across its Signature Select, Overjoyed, and Soleil private labels—adding seasonal excitement to its own brand portfolio.

Our take: As more consumers seek quality at accessible prices, private label has emerged as a go-to solution—offering differentiated assortments without the national brand markup. With cost-consciousness on the rise, it’s no surprise that private label grocery brands grew nearly four times faster than national brand sales, according to the Private Label Manufacturers Association. Retailers that invest in creative, high-quality, and culturally relevant store-brand strategies are well-positioned to win in this environment.

Go further: Read our Private Label Brands 2025 report.