The Supply Side: Private brand sales growth expected to continue in 2026

Private brand growth has been steady since 2021 by providing a lower-cost alternative to consumers responding to inflation. Private brand unit share of consumer packaged goods (CPG) was 22.1% in 2021, and up to 23.9% by the end of 2025.

The dollar share of CPG private brands increased from 20.9% to 22.3% over the same period, according to a report from Circana. The report shows that 80% of shoppers say it is important to buy a food brand that they trust. Reinforcing that trust is not just a nice-to-have, but it’s a material driver of product choice. The report found that over half of shoppers said they trust store brands, and 44% rate them high for quality.

Sally Lyons Wyatt, the chief advisor of CPG and foodservice at Circana, said food and beverage continue to lead private-label performance, with nearly 25% of the dollars coming from store brands like Walmart’s Great Value. The pace of growth slowed a bit in 2025, from the rapid pace seen over the previous two years.

“When we step back to total CPG, the takeaway is clear: Private label momentum hasn’t stalled,” Wyatt said. “It’s simply to become more selective. Growth is being driven by categories where retailers are driving and delivering consistent quality, credible value and clear reasons to choose their particular brands. In short, private label isn’t just filling gaps, it’s shaping how shoppers define value across the store.”

Circana expects private label unit share to increase between 0.2% to 0.5%, on par with growth in recent years amid economic uncertainty and continued inflation. Wyatt said improving the quality of private brands has resulted in more consumer trust and adoption from younger consumers. She said the rise of agentic commerce, where AI-generated shopping assistants make recommendations and purchases for consumers based somewhat on budget, is also a growth driver.

Wyatt said private brand growth is across food and beverage categories, with refrigerated and fresh departments anchoring the growth. Refrigerated foods reported a 38% unit share, with the dollar share increasing 0.6% at the end of 2025. The dollar share increased 0.6% in 2025, not counting eggs that declined in price. Fresh foods around the perimeter of the store garnered a 28% unit share, with dollar share increasing 0.6% as well.

Wyatt said store brands in refrigerated and fresh have long been popular with shoppers already comfortable with private labels. Frozen foods have a 27% unit share with dollar share growing 0.3% in 2025. Circana also reports growth from general foods and shelf-stable categories, which remain critical volume drivers. General food had a 22% unit share and slight dollar share growth, while shelf-stable beverages had a 13% unit share with flat dollar share growth in 2025.

“Private label reach today is both deep and broad,” Wyatt said. “The opportunity ahead lies in targeted innovation and execution, building on strong foundations, rather than trying to create trust where it already exists.”

Private label food and beverage categories that are popular with consumers that had slow or no growth included frozen desserts, frozen meals, cookies and snacks, dairy and fresh fruits and vegetables. Categories that increased unit share in 2025 include private brand chicken, baby food, juices, refrigerated meats and deli prepared along with the center of store, candy, water and condiments.

“Beverages and select perimeter categories now reflect how normalized private label choice has become across everyday shopping trips,” Wyatt said. “This is all about precision. Growth is no longer about pushing private label everywhere. It’s about knowing which aisles still have runway and where the focus should shift from expansion to differentiation, innovation and defense.”

Wyatt said retailers have continued to invest in their own brands and are seeing solid growth. The club segment – Costco, Sam’s Club, and BJ’s – has the highest share penetration at 47%, accounting for nearly half of all private-label growth in 2025. Mass retailers like Walmart accounted for 25% of all private brand unit growth, and national grocery stores had 21% of all private brand unit growth.

In the club segment, the dollar share of private brands increased 1.1% to 35% in 2025. Mass retailers like Walmart saw private brand dollar share grow to 26%, up 0.4% from the prior year. Grocery stores recorded private brand dollar share growth at 20%, up 0.3% last year. Pure-Play e-commerce recorded 4% dollar share growth last year in food, up 0.2%. Limited-assortment grocery stores like Aldi already enjoy a whopping 76% dollar share of private brands, but they lost 1.9% of that share last year to competitors. Dollar stores also lost dollar share in private label food to end the year at 10%, according to the Circana data.

Circana estimates that private label offers a 30% price discount in food, beverage and non-food items compared to name brands. The 30% discount reflects the store-wide average, and is different with each category.

Carbonated soft drinks, for example, maintain a 42% price gap on average. Coca-Cola has raised soft drink prices more than 15% over the past two years, according to analysts who follow the company.

Lauren Hazenfield, an advisory executive at Circana, said as the lines between private and national brands blur, many retailers are taking steps to build a more unified identity, including streamlining private brand lines. Aldi announced that they were simplifying their 90 brands down to about 26, with the Aldi name becoming more prevalent on packaging.

“Retailers are building lasting trust with consumers, with their own brands at the forefront, they’re delivering reliable value, consistently strong quality, and they’re making commitments that matter to their shoppers,” Hazenfield said.

Editor’s note: The Supply Side section of Talk Business & Politics focuses on the companies, organizations, issues and individuals engaged in providing products and services to retailers. The Supply Side is managed by Talk Business & Politics.