The data: Higher-income US shoppers are adopting private labels faster than any other income group.

• 44% of consumers earning at least $5,000 per month are buying more private label products than last year, versus 34% of lower-income consumers, per Simon-Kucher's Global Shopper Study 2026.
• 39% of those higher-income households now regularly purchase premium private label products.

Why this matters: Affluent consumers have historically been among the most brand-loyal grocery shoppers. Their growing willingness to choose store brands compounds a broader private label surge and weakens national brands’ pricing power.

Consumers’ perceptions of national labels have shifted. Fifty-five percent of consumers believe national brand products are overpriced without a meaningful quality advantage, per Simon-Kucher.

Perceptions of private labels have improved. More than 50% of US grocery shoppers trust private label quality as much as name brands, per Ibotta.

Private labels are gaining share. Private label-dollar sales grew 3.3% YoY last year, nearly three times the rate of national brands last year, per the Private Label Manufacturers Association.

Rising quality perceptions are accelerating private label adoption among higher-income consumers. Nearly a third (31%) of those surveyed by Simon-Kucher said quality became significantly more important in their purchasing decisions over the past year.

Implications for retailers: Consumers’ growing willingness (and eagerness) to buy private labels is a major opportunity for retailers that treat store brands as a vehicle for product innovation, not just cheaper alternatives to national brands.

That opportunity is increasingly concentrated in the “better” and “best” tiers of a good-better-best architecture. As higher-income consumers add more private labels to their baskets, differentiation matters as much as price. That’s why Walmart is upgrading the visual appeal of nearly 10,000 Great Value products, and why grocers like Albertsons are launching premium sub-brands with globally inspired flavors.

But creating the types of products that drive consumers to shop one retailer over another isn’t easy or inexpensive. It requires investment in consumer and trend data to develop distinct offerings with unique nutritional or flavor profiles. But those investments can pay off, as retailers that use private labels to differentiate their offerings will be better positioned to build lasting loyalty.