US private labels ate into national brands’ share in 2025

The news: Private label dollar sales in the US grew 3.3% in the 52 weeks that ended December 28, 2025, nearly triple the 1.2% growth rate of national brands, per the Private Label Manufacturers Association.

  • Consumers spent $282.8 billion on private label products last year, accounting for 21.3% of total sales, up from 20.9% in 2024.
  • Unit sales for store brands rose 0.6% to 68.7 billion, while national brand volumes fell 0.6%. As a result, store brands accounted for 23.5% of all items purchased, up from 23.3% a year earlier.

Zooming in: As consumers’ value focus accelerated throughout 2025, several prominent grocers—including Kroger, Sprouts Farmers Market, and Albertsons—expanded their private label assortments. The categories posting the biggest gains show where consumers are most willing to trade down—even in areas once dominated by national brands.

  • By unit sales, private label growth was led by pet care (up 5.4%), followed by liquor (4.4%), beverages (2.3%), frozen (0.9%), refrigerated (0.7%), and general food (0.2%).
  • By dollar sales, growth was strongest in refrigerated (up 6.1%), beverages (4.8%), pet care (3.7%), beauty (2.8%), frozen (2.4%), general food (1.6%), and general merchandise (0.9%).

Implications for retailers and brands: More than half of consumers (56%) now regularly buy private-label groceries, per First Insight. As perceptions of private label quality have improved, consumers increasingly view store brands as comparable to—or in some cases better than—national brands. And with the cost-of-living crisis showing little sign of easing, private labels offer retailers a way to reinforce value perception and deepen customer loyalty.

  • Beyond simply offering lower-priced alternatives, retailers should look for opportunities to differentiate their private label portfolios by identifying—and leaning into—emerging consumer trends. Albertsons, for example, recently unveiled ready-to-use, refrigerated herb blends under its O Organics brand, featuring globally inspired flavor profiles tied to regions like Asia and the Mediterranean. The approach is designed to offer a fresh, convenient product that stands apart from shelf staples.
  • As more consumers embrace store brands, national brands will be forced to justify their price premiums and prove their products are meaningfully distinctive. That pressure helps explain why manufacturers like Kraft Heinz are turning to novel, limited-edition launches—such as apple pie–flavored Kraft Mac & Cheese—to capture consumer interest.

Go further: Read our Private Label Brands 2025 report.

You've read 0 of 2 free articles this month.

Get more articles - create your free account today!