Brand loyalty is facing a serious test as the purchasing decisions of shoppers are being shaped by a new set of priorities — and a willingness to reconsider habits. As consumers reconsider allegiance to familiar brands, shoppers are comparing, switching products, and sometimes even coming back to favored brands.¹

Among U.S. shoppers, 67% say private label products satisfy them just as well as branded products, 54% only buy branded products when they’re on sale, and 36% don’t consider the brand when making a purchase, according to a new consumer index from EY.² Recent findings from a Deloitte consumer report reveals that convenience, experience, and value are competing for attention.³

Private label goods, which are often store brands, are typically less expensive than name brands but can contain similar, or identical, ingredients. More than half of all U.S. grocery shoppers bought more private brand goods last year, compared to just 28% for name brands.

For example, Costco’s Kirkland private label accounts for about a third of the approximately $254.5 billion in annual revenue.⁴ Aldi and Trader Joe’s, which sell mostly private-label products, are becoming primary destinations for shopping trips rather than a secondary stop, with more customers opting against going to a grocery store that sells a wider variety of products. In 2024, year-over-year growth was 6.2% for Trader Joe’s and 18.2% for Aldi, and Trader Joe’s is now tied with Publix for first place among grocers for customer satisfaction.^5,6

Digital experience is shaping loyalty 

Shoppers also want a great digital shopping experience. Approximately 75% of Gen Z and Millennial consumers consider a high-quality digital experience essential for loyalty programs.⁷ Seamless online shopping, personalized recommendations, and easy-to-use mobile apps are no longer perks — they are prerequisites for brands looking to maintain loyalty.

Shoppers are leveraging digital tools for price comparisons, reviews, and even personalized rewards, with 42% of U.S. shoppers using a mobile phone as part of their latest retail purchase.⁸

But even as digital wallets and contactless payments grow in popularity, 52% of Americans still say cash is king and 27% carry it every day, according to Empower research. There is a generational difference, with 41% of Gen Zers using digital payment platforms more often than cash, compared to 27% overall.

Read more: How emotions and mood influence financial behavior

Loyalty as a financial strategy 

The shifting dynamics of brand loyalty are closely tied to personal finance strategies. Nearly 80% of consumers rank value for money as their top driver when choosing brands.⁹ Shoppers are mixing trusted favorites with new discoveries based on price, performance, and availability.

Read more: Taking Stock: Tariff effects brewing beyond March inflation report

Proving value and relevance is key 

Empower research shows that 82% of Americans say their money doesn’t go as far as it used to, and 87% are fed up with rising prices. Over one-third of people aren’t even willing to pay $1 more for a cup of coffee.

More than half of U.S. consumers feel brands must consistently prove their value and relevance to maintain loyalty.¹⁰ Convenience, digital experiences, and personalized offers all play a role in the decision-making process.

The future of brand loyalty is not rigid. Shoppers are looking to maximize value and satisfaction by blending familiar standbys with new products to stretch household budgets during a time when tariffs could increase the price of many products.