Key takeaways

• Private-label sales are projected to reach $277 billion for 2025, extending a multi-year run of growth.
• Younger shoppers and higher-income households are driving wider acceptance of private-label products.
• Generic brand labels have given way to modern packaging and more premium designs.

Private-label food brands continued to gain ground in 2025 as shoppers navigate higher prices and reassess how they define quality. Rising costs led many to try private-label goods a few years ago, but updated designs and a more premium feel are keeping them there.¹

Sales of private-label store brands are projected to reach $277 billion for 2025, up from last year’s record of $271 billion, according to the Private Label Manufacturers Association.² From 2021 to 2024, private-label store brand sales increased by over $51 billion, a 23.6% gain.³

Attractive pricing helped spur the rise, as food manufacturers raised prices during the pandemic and the higher inflation that followed, to keep up with supply-chain disruptions and higher labor costs.⁴ 

Grocery prices are up about 25% over the last five years.⁵ Americans spent an average of $589 on groceries in November, according to Empower Personal Dashboard^TM data.

But cost isn’t the only factor. Shoppers are also responding to how private-label products have evolved, as retailers improve ingredients, refresh packaging, and broaden assortments with younger consumers in mind.⁶

Read more: Price check: Find out which states spend the most on groceries

Private label gets a makeover

Decades ago, generic or private-label brands would purposely use inexpensive packaging and plain, stripped-down branding to convey the message of savings. These days, private-label packaging has shifted toward a more modern look with contemporary fonts and higher-quality imagery.⁷

Many of the design changes are also associated with health, sustainability, and clean ingredients. Walmart’s upscale Bettergoods brand — a big driver of the retailer’s recent earnings growth — features organic, plant-based, and gluten-free products.

Other store labels like Trader Joe’s, Costco’s Kirkland Signature and Target’s Good & Gather have also drawn loyal followings from younger shoppers. The trend isn’t limited to foodstuffs as it expands to other categories like Ulta Beauty’s private-label collection of makeup and skincare or Target’s Cat & Jack kids' apparel.⁸

The upgrade and expansion of private-label offerings have been particularly aimed at younger shoppers who increasingly view them as on par with premium or name-brand labels.⁹

Gen Z and Millennials are showing the largest year-over-year increases in private-label adoption, at roughly 5%, according to market research and consumer insights company Numerator. It projects that Gen Z’s share of private-label spending (18.4%) will surpass that (18.3%) of Baby Boomers by mid-2026.¹⁰

Private-label products have also made significant inroads with households with incomes above $100,000.  Some 82% of households above that income threshold have increased their frequency of purchasing private-label products, according to an August 2025 consumer sentiment survey.¹¹

Read more: Why value retailers are winning over higher-income shoppers

Private labels surge, but brand loyalty also holds

Three-quarters of shoppers (75%) say private-label products offer good value, and 72% view them as strong alternatives to national brands, according to an April 2025 study.¹²

Private-label portfolios now extend into more products, formats, sizes, and flavors, giving shoppers more choices and variety. Retailers are also moving to tiered offerings such as value-focused, mid-tier, and premium lines.¹³

Among categories of private-label goods, sales of refrigerated foods rose 13% between June 2024 and June 2025, according to the Private Label Manufacturers Association. Other top gains during that period include beverages (4.8%), frozen food (3.8%), general food (2.5%), pet care (2%), home care, (1.4%), and beauty (1.1%).¹⁴

The sharp rise in private-label popularity doesn’t mean national brands are out of the picture. In fact, 62% of shoppers say they still default to the branded products they know and trust.¹⁵

Food industry analysts say strong loyalty to many national brands has been reinforced by decades of familiarity, use, and trust.¹⁶ Staples like Band-Aid, Dove soap, and Clorox continue to rank high among surveys of the most trusted brands.¹⁷

Coffee is one of many other examples. Starbucks remains the top-selling brand at grocery and mass retailers like Walmart and Target, and ranks second at club and dollar stores — signaling brand loyalty. At the same time, coffee prices are up 41% year-over-year, according to the Bureau of Labor Statistics.¹⁸

Private label’s next chapter takes shape

As private-label brands become more established, the push and pull with national brands could define the next phase of grocery retail, according to industry professionals. With younger shoppers reshaping expectations around quality and design, the market is poised for more changes — and consumers could benefit from the widening array of options amid continuing cost challenges.¹⁹