Private brands have been seen as something of a “supporting player.” The conventional narrative goes something like: The store is the destination. Private label is there primarily to provide a lower-priced alternative to national brands; it’s there to improve margins, and give shoppers a value option when inflation bites or household budgets become a concern.
The past six years have shown that the conventional narrative is hopelessly outdated, and that private brands – far from being supporting players – ought to get top billing.
According to FMI’s newly released The Power of Private Brands 2026 report, 56% of shoppers say their primary store’s brand is either very or extremely important in their decision to shop at that retailer. Nearly one in five shoppers (21%) describe it as extremely important. Only 15% say it is not important or not at all important.
That’s a remarkable statistic that goes a long way to proving that the narrative has changed, and that stores ought to pour even more support into their private brands .
The numbers throughout FMI’s report point to the same conclusion.
Private brands now appear in 92% of grocery shoppers’ homes, up from 89% a year ago. Awareness is nearly universal, with 93% of shoppers saying they recognize private brands offered by their primary grocery retailer, up from 89% the previous year. Meanwhile, 95% of shoppers purchase store brands at least occasionally, putting private label on more or less equal footing with national brands in terms of household penetration.
Sales Tell a Similar Story
The growth is showing up in actual sales performance as well.
According to Circana data cited in the report, private-brand dollar sales increased 2.8% during the 52 weeks ending March 22, 2026, compared with 2.6% growth for national brands. Unit sales rose 0.6%, triple the 0.2% increase recorded by manufacturer brands. Private brands now account for 22.6% of CPG dollar sales and 24.4% of unit sales. Food and beverage private-label share reached 24.1% of dollars and 24.0% of units.
I think one of the report’s most important findings is that private label’s momentum appears increasingly disconnected from inflation.
As we all know by now, one of the initial catalysts in the explosive growth of private label was the creeping price increases we saw in the wake of the pandemic. That’s well established, but, while prices remain elevated, inflation has cooled – it no longer explains the persistent growth and popularity of private brands.
Nearly half of shoppers (49%) report buying more private brands during the past year, compared with just 31% who say they purchased more manufacturer brands. Only 4% report buying fewer private-label products, versus 17% who reduced purchases of national brands.
Even more striking, 51% of shoppers say they would be very likely to continue purchasing private brands if grocery prices decline, while another 43% say they would be somewhat likely to do so. In other words, 94% of shoppers indicate they would stick with private label even in a lower-inflation environment.
That finding challenges one of the grocery industry’s longstanding assumptions: that consumers eventually return to national brands once economic pressures ease.
The FMI data suggests many already have a different relationship with store brands.
Consumers Have Completely Changed How They Think About Private Label
When respondents were asked about private-label products currently in their homes and their favorite store-brand items, they frequently named brands themselves — Kirkland, Great Value, Kroger and others — rather than merely referencing categories such as milk, bread or canned goods.
That is the behavior of brand loyalty. And shoppers are increasingly citing reasons that go well beyond price.
Among consumers who increased their private-label purchases, 67% cited good value and 60% cited lower prices. But quality was mentioned by 39%, taste by 37%, ingredients by 16%, meal-solution needs by 15%, health needs by 13%, appealing packaging by 13%, and innovation by 9%. FMI notes that taste as a driver has climbed from 26% in 2023 to 37% in 2026, while quality rose from 30% to 39% during the same period. Appealing packaging increased from 8% to 13%.
Those are not the numbers of a category driven solely by thrift.
They’re the numbers of a category that’s something like a full-fledged destination.
The strongest private-label categories further reinforce that evolution. Among shoppers who consistently buy the same brand within a category, private label holds particularly strong positions in fresh bakery items (59%), milk and non-dairy alternatives (51%), baking and cooking products (50%), and paper products (49%). Fresh produce, deli foods, refrigerated dairy, frozen foods, and even non-prescription drugs all show substantial private-label penetration.
Meanwhile, some of the fastest-growing private-label categories are not traditional value staples at all. Circana data shows private-label dried meat snacks grew 25.3% year-over-year, wine increased 20.2%, refrigerated baked goods rose 20.2%, coffee gained 16.7%, refrigerated seafood climbed 16.5%, and refrigerated side dishes increased 15.4%.
These are categories where shoppers are making choices based on experience, quality, convenience, and taste—not simply the lowest shelf price.
There Are Even Bigger Implications for Retailers
Every supermarket can carry Coca-Cola, Heinz, Kellogg’s, Pepsi, and thousands of other national brands. Those products remain important traffic drivers, but they are rarely exclusive.
Private brands are different.
A retailer owns the intellectual property. It controls the assortment, product development, sourcing strategy, pricing, packaging, and customer experience. Competitors cannot stock an identical product.
That exclusivity is becoming increasingly valuable in a marketplace where differentiation is harder than ever.
Costco has Kirkland Signature. Trader Joe’s has built virtually its entire identity around private-label products. Wegmans has spent decades cultivating loyalty through its own brand portfolio. Aldi’s business model is heavily dependent on exclusive brands.
The common thread is that these retailers are selling products that shoppers can only get from them.
That is why private brands are becoming more than a merchandising strategy. They are becoming a retailer’s identity, one of the few true competitive moats remaining in modern grocery.
And according to FMI’s latest research, shoppers are increasingly rewarding retailers that understand that distinction.
