Private Label was once a purchase to be embarrassed about, but that isn’t the case anymore. Now, consumers are increasingly turning to private label when doing their grocery shopping – why is that? In this session, find out who’s shopping private label, why they’re shopping private label, and how a private label product can change the category landscape that it enters.
In this webinar you’ll learn:
Generated by AI
Private label is no longer the generic, “good enough” option shoppers quietly toss into their carts. In this webinar, the team unpacked how private label has evolved into a mainstream, trend aware, and increasingly premium part of the modern grocery basket. The discussion covered who is driving growth, how private label is performing versus national brands, what value really means in today’s economy, and where the next innovation opportunities are emerging.
Below are the key takeaways, organized into the four themes from the webinar.
The Big Shift: Private Label Is Becoming Habitual
One of the most important changes highlighted is that private label growth is increasingly driven by routine behavior, not just inflation. While rising prices initially pushed shoppers toward store brands, recent dollar growth is now largely coming from existing households buying private label more often, with continued gains also coming from more households trying it.
That shift matters because it suggests private label is sticking. It is becoming part of shoppers’ regular habits, not merely a trade down choice when budgets get tight. For retailers, this creates a clear mandate: retaining momentum will depend on continuing to differentiate the assortment, not simply offering lower prices.
Who’s Buying Private Label Now: Higher Income and Younger Shoppers Lead
Private label is no longer confined to budget conscious households. The webinar emphasized two standout adoption trends:
Higher income households are all in
Higher income shoppers now show some of the highest adoption rates, signaling that private label is increasingly viewed as a quality option, not a compromise. They are buying private label in staples and perishables, suggesting confidence in store brand quality across everyday needs.
Millennials and Gen Z are driving outsized growth
Millennials and Gen Z together represent a large portion of households, but their contribution to private label dollar growth is disproportionately high. Gen Z in particular is over indexing across many departments, with notable strength in refrigerated and beverages. Millennials were highlighted as especially strong in frozen.
The implication for retailers is that winning younger shoppers requires going beyond traditional value messaging and leaning into innovation, convenience, and premium experiences.
Performance Snapshot: Share Stability, Category Winners, and Recent Deceleration
Private label continues to hold a meaningful share of the market, with dollar share sitting around 22 percent and showing structural strength. At the same time, the webinar noted a near term slowdown:
A key nuance: much of the recent dollar decline is concentrated in refrigerated categories such as eggs, cheese, milk, alternative dairy, and creamers.
Where private label is winning
The strongest private label growth opportunities were concentrated in high-velocity, high-relevance categories, especially:
This mix shows private label strength both in staples and in more elevated convenience solutions, which is a meaningful evolution from the historical “basic pantry only” perception.
The Pricing Story: A Widening Value Gap Versus National Brands
Pricing remains a major tailwind. Over the past two years, national brand average retail pricing rose faster than the CPI food at home index, while private label price increases stayed below CPI.
The result is a larger and more visible value gap between private label and national brands. The webinar also suggested retailers leaned into private label pricing strategically during holiday periods, reinforcing store brands as a value anchor.
A question to watch going forward is whether private label prices will rise to match inflation more closely, or whether retailers will continue using private label pricing as a lever to deliver value across income brackets.
Value in an “E-Shaped Economy”: Why Tiering Matters More Than Ever
A particularly useful framework introduced was the shift from describing the U.S. as a “K-shaped economy” to an “E-shaped economy,” where the middle line is sagging. In this view:
This is where premium private label tiers become powerful. Retailers can serve three shopper needs at once: value tier, premium tier, and national brand tier.
Cream cheese as a case study
The webinar highlighted cream cheese as an example where private-label organic is surging, with strong recent dollar and unit growth even as prices increased. Meanwhile, value private label saw price decreases, but dollar growth declined, suggesting some shoppers may be trading up to organic private label or reducing category purchases as baskets tighten.
The broader lesson: a tiered private label strategy can help retailers meet shoppers where they are, rather than forcing a single store brand proposition on everyone.
Innovation Roadmap: Clean Labels, Nutrient Density, and Global Flavor
The webinar emphasized that shoppers now expect private label to keep pace with trends, not lag behind them. Three forces are shaping innovation priorities:
Intentional eating and clean labels
A significant share of Gen Z and millennial shoppers follow a specific diet and scrutinize ingredients. Avoidance of corn syrup, artificial sweeteners, and sugar alcohols was cited, and clean labels are becoming baseline expectations.
Nutrient density: protein and fiber
High protein demand continues expanding beyond traditional categories into supplements, breakfast, and even soda. Fiber is also rising as a daily wellness expectation.
Global flavor exploration
Shoppers want new flavor experiences inspired by global cuisines, showing up in categories as varied as pasta sauces, wellness bars, and ice cream.
The most compelling innovation concepts often stack multiple trends, for example combining functional benefits with adventurous flavors.
Where the White Space Is: Categories Young Shoppers Love but Private Label Has Not Won Yet
A practical lens was shared for spotting growth opportunities by plotting:
The most attractive “innovation opportunity” sits where younger shoppers are highly engaged but private label share is still low. Categories called out included energy drinks, yogurt, and frozen pizza.
These are areas where demand is already strong, and retailers have room to build differentiated products through premiumization, trend alignment, and unique offerings rather than competing on price alone.
Execution Paths Retailers Are Using: Conscious Consumption, Fast Followers, and Limited Time Offers
The webinar outlined three common approaches retailers are using to innovate effectively:
Conscious consumption with affordability
Shoppers want value, but also want products aligned with priorities like cleaner ingredients, functional benefits, quality, and sustainability. Retailers like Aldi, Walmart, and Kroger were cited as examples taking action, such as removing certain ingredients or expanding protein focused offerings.
Fast follower innovation
Retailers that identify trends early and launch quickly can turn private label into a destination. The webinar referenced Erewhon’s strong private label share in vitamins, minerals, and supplements, plus Sprouts launching a private label refrigerated cold brew to capitalize on ready to drink coffee momentum.
Speed can drive excitement, but it must be balanced against trend risk and inventory complexity.
Limited-time offers to test and learn
Limited-time offerings can create urgency and repeat visits while lowering the risk of permanent assortment bets. Trader Joe’s was highlighted as a model of building anticipation through frequent seasonal and limited-run innovation, while Marks and Spencer was noted for sustaining a high cadence of new items throughout the year.
Private Label Is a Long-Term Growth Engine, Not a Temporary Trade Down
Across shopper behavior, performance, value strategy, and innovation, the webinar’s central message was consistent: private label has matured into a durable growth driver.
It resonates across income levels, is increasingly led by younger shoppers, and is expanding beyond basic staples into premium, functional, and trend-forward products. The retailers that win will be the ones that treat private label like a brand, build tiered value propositions, and use data to identify which trends have staying power.
If private label used to be “just cheaper,” it is now competing on quality, relevance, and excitement. That is a fundamentally different game, and it is reshaping shelves across the store.
