Private Label Power: How Store Brands Are Shaping the Future of Grocery Retail

By George Goodwin

Not long ago, store brands were the “budget buys” hidden on the bottom shelf. Today, private label power is reshaping how we shop, what we buy, and how retailers grow.

From better quality to lower prices and creative flavors, private label grocery products are winning over more and more shoppers. Let’s dive into what’s driving this trend—and why it matters for the future of grocery retail.

What Are Private Label Brands?

Private label brands—also called store brands or own brands—are products made by or for a specific retailer. You won’t find them everywhere like national brands. Instead, they’re sold only in places like Aldi, Trader Joe’s, Walmart, or Costco.

And here's the thing: they’re no longer just the cheap option. Many store brands are now competing head-to-head with the big names on taste, quality, and innovation.

Why Private Labels Are Booming

Inflation Has People Looking for Value

As grocery prices keep rising, shoppers are choosing store brands to save money. In 2024, private label grocery sales in the U.S. hit $271 billion, growing by 3.9%—much faster than national brands, which only grew by 1%.

More than half of U.S. grocery shoppers (55%) said they bought more store brand goods this year. And only 28% said the same about national brands.

Bottom line? People want value without giving up quality.

Store Brands Are Getting a Reputation Glow-Up

A few years ago, most folks saw private label items as “meh.” Now, that’s changed in a big way. Around 80% of shoppers say store-brand products are just as good—or even better—than name brands.

And what shoppers care about is changing too:

• Quality jumped from 30% to 42% as a top reason people choose store brands.

• Taste rose from 26% to 42%.

Retailers have clearly stepped up their game—and it’s paying off.

Big Retailers Are Going All-In

Retailers are investing serious money and creativity into their private label lines. Here are some examples:

🛒 Walmart’s “Bettergoods”

Walmart recently launched its largest private label food brand in 20 years: Bettergoods. It includes 300+ chef-inspired items aimed at younger shoppers looking for cool, affordable eats.

🛒 Aldi’s All-Private Strategy

Over 90% of Aldi’s inventory is made up of store brands. This gives them full control over quality and pricing—and helps them stay super competitive.

This focus on private labels helps retailers differentiate, build loyalty, and boost profits—even during tough economic times.

What’s Next for Private Label Grocery Brands?

Private labels aren’t just having a moment—they’re becoming the future. Experts say store brand sales could grow nearly 6% every year through 2030, reaching $462 billion.

Here’s what to expect:

• More premium and wellness-focused products

• Eco-friendly and sustainable packaging

• Faster innovation and trendier flavors

• Increased shelf space in mainstream grocery stores

What Should CPG Brands Do About It?

If you’re a national brand, don’t panic—but don’t ignore this shift either. Here are some tips:

• Offer something unique: Don’t compete on price. Compete on innovation, quality, or storytelling.

• Act fast: Speed matters. Store brands are agile and fast to market.

• Consider partnerships: Some CPGs are working with retailers behind the scenes to develop premium private label lines.

Key Takeaways

• Private label grocery sales are booming, growing faster than national brands.

• Shoppers love the value and quality of today’s store brands.

• Retailers are investing heavily in their private label strategies to win loyalty.

• The future of grocery retail is being shaped by these store-exclusive products.

• CPG brands must adapt, innovate, and stay agile to keep up.

FAQs about Private Label Power: How Store Brands Are Shaping the Future of Grocery Retail

Are private label products lower quality than national brands?

Not anymore. Most private labels now match or even beat national brands in terms of taste, ingredients, and packaging.

Why are private labels growing so fast?

Because they offer better prices, improved quality, and exclusive product lines that national brands don’t.

Will private labels replace national brands completely?

No, but they will continue to take up more shelf space and market share—especially for everyday essentials.

Which stores have the best private labels?

Aldi, Trader Joe’s, Costco (Kirkland), and Walmart (Bettergoods) are all leaders in the space.

How can brands compete with store brands?

By offering innovation, building emotional connections with customers, and moving fast on trends.

Conclusion

Private labels are no longer just the cheaper option—they’re a major force driving the future of grocery retail. As inflation pressures shoppers and retailers look for ways to stand out, store brands are stepping up with better quality, smarter branding, and products that truly meet modern demands.

Whether you’re a retailer aiming to grow your private label line, or a CPG brand looking to stay competitive, now is the time to pay attention. The private label revolution isn’t slowing down—it’s just getting started.

If you’re in grocery retail—or even just a curious shopper—private label power is something you’ll want to watch closely. These brands are smart, affordable, and here to stay.

Ready to Harness the Power of Private Labels?

Whether you're a grocery retailer looking to expand your private label strategy or a brand navigating this shift, we're here to help.

👉 Let’s talk! Reach out today to discover how you can stay ahead in the fast-changing world of grocery retail.

Contact us now to start building smarter, stronger, and more profitable store brands.