BOSTON — Consumer interest in private label products continues to rise as US shoppers across all income levels fill their shopping carts with retail branded options in response to rising costs of living, according to data from the management consultancy Simon-Kucher & Partners.

The findings come from the agency’s 2026 US Global Shopper Study, which highlights factors influencing consumer decisions to purchase private label products.

The category was 24%, or $330 billion, of total US food and beverage sales in 2025, according to market researcher Circana.

While private label products often are perceived as budget-friendly options for lower-income consumers, Simon-Kucher found 44% of higher-income consumers (described as consumers earning more than $5,000 per month) are increasing private label purchases — which is 10% higher than lower-income consumers.

Forty-two percent of US shoppers purchase private label offerings “almost exclusively,” a statistic equivalent to Simon-Kucher’s 2025 study.

The rise in private label purchases stems from consumer demand for affordable products that deliver quality and value. Fifty-five percent of surveyed consumers said they could no longer justify the higher prices of branded products when private label options are meeting their standards. Additionally, 28% said brand name is a minimal factor in purchasing decisions.

“It’s no longer about trading down; It’s shopping smart,” said Michelle Leong, partner at Simon-Kucher. “Private label is reshaping grocery by delivering comparable quality to national brands while expanding into more categories. As a result, higher-income consumers are no longer seeing a reason to pay a premium.”

An analysis from McKinsey & Co. reached a similar conclusion, with 86% of US consumers equating the value of private labels to that of name brands.

 “Although value for money and low prices still anchor private label appeal, price is no longer the sole motivator,” the McKinsey & Co. report said. “Consumers also believe private label goods offer equal or superior quality, value and variety compared with branded options.”

Aldi, for example, is rebranding its private label products by stamping the retailer’s name across its collection of offerings. The retailer also will remove 44 ingredients from its private label formulations by December 2027 to provide affordable products with “simple ingredients,” according to the retailer.

Another driver in private label’s rising popularity is retailer commitment to tiered offerings, such as Walmart’s Great Value and Bettergoods brands. Tiered offerings affirm the category’s commitment to value and quality by offering products with premium packaging and ingredients at a price point lower than branded alternatives.

Fifty-six percent of higher-income consumers intentionally purchase premium private label products, with 32% basing the decision on value, according to Simon-Kucher. The report found offering “good-better-best architectures” expands room for product exploration in the private label sector, which appeals to a larger audience of consumers. Thirty-nine percent of consumers routinely buy premium private label products, compared to 31% of lower-income consumers. 

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