Why More Grocery Shoppers Are Choosing Store Brands and What It Means for Their Budgets

What people put in their carts used to be driven largely by the name on the package. That habit is fading quickly, and the sales data now show why. What started as a money-saving response to inflation has become a lasting change in how Americans shop, and the trend appears set to deepen over the coming year.

What is changing

Store-brand sales in the United States hit a record $282.8 billion in 2025, according to the Private Label Manufacturers Association. The total includes grocery items, household essentials and specialty products, not just the low-cost basics where private label once had the strongest foothold.

The gains are widespread. Store brands are posting sales increases in frozen foods, refrigerated items, beverages and general merchandise. PLMA research also shows continued growth in store-brand unit sales, suggesting private label is becoming a regular part of weekly shopping rather than a temporary trade-down.

Retailers have reacted by putting more money into their own labels, widening product selection, improving packaging and introducing premium lines designed to compete with national brands on quality as well as price.

Why it is happening

Several forces are coming together.

Grocery prices changed shopper behavior. Higher food costs over recent years pushed consumers to compare unit prices more closely and rethink habits they had not questioned before. Even a one- or two-dollar difference on items bought every week adds up over a month, and shoppers are doing that calculation.

The quality gap has narrowed. Blind taste tests from Consumer Reports found that many private-label foods performed as well as well-known national brands. When the less expensive product tastes the same, the premium is harder to justify, and shoppers who try it often keep buying it.

Trial often leads to repeat buying. A shopper who switches to store-brand pasta sauce to save money and finds the family likes it may have little reason to go back. Each successful trial weakens brand loyalty that may have been inherited rather than intentionally chosen.

Private label is no longer just the backup option. It is increasingly becoming the default, and name brands now have to justify their higher prices every time shoppers reach for them.

What may come next

The next stage is less about people discovering store brands and more about retailers and national brands adapting to a market where private label is the baseline rather than the alternative. Three trends are worth watching.

1. More premium store-brand products are likely. Retailers have learned that shoppers will pay for quality under a store label, not only for lower prices. Expect more organic, specialty, international and better-for-you offerings that compete directly with midrange national brands. Reader action. When your usual name brand is discounted, compare the unit price with the premium store-brand version, not just the basic one. The price gap may be smaller than expected, and the quality may be closer than you think.

2. National brands will likely respond with stronger promotions and loyalty benefits. Consumer Reports says coupons, loyalty discounts and promotions can sometimes make national brands the better value. Expect those tactics to intensify as established brands try to hold market share. Reader action. Check a loyalty app and a digital coupon before assuming the store brand is cheaper. The best deal in a given week is not always on the same shelf.

3. Shoppers will keep deciding category by category. Households trying to save the most do not have to choose entirely between store brands and name brands. Many are mixing the two. Store-brand flour, frozen vegetables and cleaning products can sit alongside the one or two national brands they truly prefer. Reader action. Pick two items you buy every week and try the store-brand version once. If the household cannot tell the difference, keep buying it and move on to the next two.

The practical lesson is simple: brand loyalty is something to review, not assume. A grocery cart that mixes both labels can help shoppers save money, especially when they compare prices instead of relying on habit.

THREE SIGNALS TO WATCH

1. PLMA's next private-label sales update and whether 2026 growth exceeds the 2025 record of $282.8 billion.
2. New premium or specialty store-brand launches at major grocery chains, which would show where private label is moving upmarket.
3. Expanded loyalty-app discounts and digital coupon offers from major national brands, a direct reaction to private-label market-share gains.