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Report: Private label interest continues to grow

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Almost half of U.S. consumers say they’re likely buying more private label products than ever before due.

Consumers still opt for name brands over private label products, but the gap is narrowing.

Nearly three-quarters (72%) of shoppers say private label products are good alternatives to name brands, and nearly six-in-10 (59%) say that they would buy more private label products if a larger variety were available, according to a new survey from NielsenIQ (NIQ). Seventy-five percent of those surveyed said that private labels are good value for the money.

Almost half (49%) of U.S. consumers say they’re likely buying more private label products than ever before due to high prices at the store, which NIQ’s data proves. The current sales share of private label items in the U.S. is 15.6%, and the overall category saw a 4.1% increase in 2024 in year-over-year sales, outpacing top name brands. NIQ said that branded products are 19% more expensive on average than their private label counterparts.

Overall, consumers are becoming less brand loyal. More than half (54%) of U.S. consumers say whether a product is a name brand or a store brand is irrelevant, they just buy what they need. Nearly two-thirds (64%) of consumers say that if they look hard enough, they can find a product that fits what they need, regardless of brand, and 60% say they are buying more brands across more categories than they ever have before.

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“​​Retailers have taken a page out of the brand marketing playbook and are designing appealing, high quality products with their own brand names,” said Steve Zurek, VP of thought leadership, analytics & activation at NIQ. “This poses a unique challenge for national brands. Unlike store brands where they have direct access to distribution, national brands must present compelling and clear value propositions to get on retailer shelves.”

[READ MORE: Survey: High prices still fueling private label purchases; most buyers 'satisfied']

Additional highlights from NIQ’s private label survey include the following:

  • 71% of consumers say they shop at a physical store because it has the lowest prices, although 57% say they look online for things that are out of stock at their local store.
  • More than half (55%) of consumers say they maintain different shopping lists for different in-store and online retailers.
  • 43% of consumers say they would likely repurchase a new brand they tried as a retailer’s substitute for their first choice.
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