A Milestone Year for Private Label Dominance (Image Credits: Unsplash)
United States — Private label sales in consumer packaged goods climbed to a staggering $330 billion in 2025, marking a pivotal shift in retail dynamics.[1] Shoppers increasingly turned to store brands for value without sacrificing quality, especially amid ongoing economic pressures. Food and beverage categories spearheaded this surge, solidifying private labels as a cornerstone for retailers nationwide.
A Milestone Year for Private Label Dominance
Private label products captured a 24% unit share and 23% dollar share of the total CPG market last year.[1] This performance underscored their evolution from budget alternatives to premium contenders. Retailers reported robust gains across channels, with club stores emerging as the strongest performers.
National grocers outpaced regional counterparts in leveraging these brands for growth. The momentum reflected broader consumer trust, as surveys showed parity in perceived quality between store brands and national names in essentials like pantry staples.[2]
Food and Beverage Categories Drive the Surge
The food and beverage sector claimed a 24% value share within its aisles, leading the private label expansion.[3] Refrigerated items, beverages, and snacks saw particular strength, fueled by innovations in indulgent yet healthier options. Shoppers favored transparent ingredients and wellness-focused lines from their preferred stores.
In supermarkets alone, store brand sales hit $282.8 billion, a 3.3% increase from 2024.[4] This outstripped national brand growth by nearly three times, with unit sales adding 430 million more to reach 68.7 billion. Categories like pet care and frozen foods also posted solid advances, highlighting diversified appeal.
Club Channels Emerge as Growth Powerhouses
Club retailers accounted for nearly half of all private brand gains in 2025.[5] These outlets thrived by offering bulk value and exclusive lines that matched premium pricing. Consumers sought sustained savings here, blending loyalty programs with high-quality generics.
Mass merchandise channels complemented this trend, though supermarkets remained central for everyday food purchases. Overall, the multichannel push amplified private labels’ footprint beyond traditional grocery aisles.
Consumer Shifts Propel Premium Private Labels
Generation Z shoppers propelled much of the momentum, embracing store brands as stylish, quality equals to name brands.[2] Wellness, sustainability, and clean ingredients became hallmarks, with elevated lines targeting indulgent snacking and functional beverages.
- Financial household pressures prioritized value-driven choices.
- Trust in quality matched national brands across food and non-food.
- Sustainable sourcing drew eco-conscious buyers.
- Premium innovations expanded beyond basics into organics and health bowls.
- Loyalty programs fostered repeat purchases.
Sally Lyons Wyatt, global executive vice president and chief advisor at Circana, noted, “As we look ahead to 2026, the outlook for private label remains positive, though more balanced.” She highlighted intensifying competition from national brands sharpening their strategies.[1]
Global Context and Future Horizons
While U.S. private labels hit 24% unit share, Europe maintained a commanding 50% in the EU, with gains in Spain and France.[5] Retailers worldwide invested in innovation to build equity, mirroring American trends toward premiumization.
Lauren Hazenfield, industry advisor at Circana, emphasized, “Building authentic, deeper consumer connections, especially through wellness, sustainability, and meaningful experiences, is essential for retailers looking to create long-lasting trust and loyalty.”[1]
Key Takeaways
- Private label CPG sales topped $330 billion in 2025, led by food and beverage at 24% share.
- Club channels drove half the growth; Gen Z fueled premium demand.
- Expect measured expansion in 2026 amid rising national brand competition.
Private labels redefined retail success in 2025, blending affordability with aspiration. As competition heats up, their strategic role seems secure. What role do store brands play in your shopping routine? Share your thoughts in the comments.
