U.S. private label sales have reached $330 billion, capturing a 24% unit share and a 23% dollar share of the total market, according to a Circana report.
Private label products now hold a 24% value share within food and beverage aisles. Growth is visible across the store, but recent momentum is strongest in emerging spaces. Club channels are currently the primary growth engine, accounting for nearly half of all private brand growth as consumers seek sustained value.
Additional findings:
• National grocers are accelerating private label gains faster than regional players, with club channels contributing nearly half of all private brand growth.
• Private label innovation remains a critical growth engine with retailers focusing on sustainable sourcing, wellness-oriented products, and premium offerings. Elevated private brands have seen outsized innovation levels, particularly in indulgent snacking and beverages.
• Consumers report trusting store brands as much as name brands for quality products, with private label quality perception growing across categories like food, beverages, and non-food items, such as kitchen and paper goods.
• Sustainability and wellness-focused product lines are becoming key drivers of private label growth, with private label loyalists often prioritizing wellness and environmentally friendly options.
Younger consumers, particularly Generation Z, are driving this momentum in the U.S. market. Shoppers increasingly view private labels as high-quality alternatives to name brands. Retailers are meeting this demand by expanding their portfolios to include premium, functional, and wellness-focused product lines that rival traditional brands.
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, Sally Lyons Wyatt, global executive vice president and chief advisor at Circana, said in a statement. She added, however, that the competitive landscape is intensifying, with name brands stepping up innovation, sharpening pricing, and amplifying their social and digital engagement.