As grocery shoppers look for ways to save money, store brands have always been a good bet. Sales data – and a quick look at your pantry – show that store brand sales have been on the rise in recent years.
But that surge is showing signs of leveling off, as the big brands begin to fight back.
The market research firm Circana says private label growth is strong, but slowing. Sales of store brand products reached $330 billion last year, representing 24% of all grocery products sold and 23% of all grocery dollars spent.
But Circana also projects that private label’s unit share this year will increase by just one-half of one percent. So we may be buying just about all the store brand products we can take.
“The outlook for private label remains positive, though more balanced,” Circana global executive vice president and chief advisor Sally Lyons Wyatt said in a statement. “With name brands stepping up innovation, sharpening pricing, and amplifying their social and digital engagement,” private label’s turbocharged growth is becoming more “normalized.”
Store brands have long been seen as a good choice when it comes to cost. But private labels have been stepping up their game when it comes to quality as well. A survey by FMI – The Food Industry Association last year found that value and affordability drives shoppers’ decisions to buy store brands. But nearly half of the shoppers surveyed said they were likely to continue purchasing private brands even if grocery prices fall. “This indicates that shopper loyalty to these brands is strong and no longer based only on price,” FMI concluded.
So why buy the name brand when the store brand is just as good, and cheaper, too?
Circana says brands are now getting better at countering their competitors on both fronts. Its report highlights more “name brand innovations” over the past year, as brands look to emphasize the value of sticking with the names you know. A notable metric is the sale of newly-introduced products, where big brands are capturing more sales and private label’s share is declining. “Private label innovation surged in 2024,” Circana found, as store brands represented 24% of new food product sales. But innovation tapered off in 2025, with store brands’ share of new food products slipping to just 20%.
Often, new product introductions are paired with promotions. And “private labels promote less frequently than name brands,” Circana found. Savvy shoppers who keep their eyes open for coupons and deals know they can often get name brand products on sale for less than they can buy store brand products at full price.
While Circana remains bullish about private label’s prospects, its cautious take acknowledges that store brands’ meteoric rise can’t continue at the same pace forever. Considering that nearly one out of every four grocery products we now purchase is a store brand, there’s only so much higher that number can go before name brands start pushing back. And much of store brands’ growth is attributed to club stores like Costco, and discount stores like ALDI, where their own brands make up a huge percentage of their offerings. At more traditional grocery stores, private label’s share of sales is lower – and the big brands would like to keep it that way.
“The key drivers — financial pressures on households, improved quality and trust, strong Gen Z adoption, and the growing influence of loyalty and exclusivity — remain firmly in place, positioning private label for continued success,” Wyatt said. “However, the competitive landscape is intensifying.”
And that could be good news for your grocery budget. After all, when businesses compete – consumers are often the ones who win.
Image source: ALDI
