Circana: Private Label Sales Keep Gaining Share

Why It Matters

The continued rise of private labels reshapes retailer margins and intensifies competition, forcing national brands to innovate and prompting retailers to refine their store‑brand strategies.

Key Takeaways

• US private label sales hit $330 billion in 2025.
• Share rose to 24%, up 0.4 points year‑over‑year.
• Refrigerated/fresh perimeter items lead category growth.
• Club channel drives 47% of private‑label expansion.
• Wellness claims now match or exceed national brands.

Pulse Analysis

The private‑label segment in the United States has crossed the $330 billion threshold for 2025, capturing roughly 24 % of total food‑and‑beverage spend. While the increase of 0.4 percentage points may appear modest, it reflects a steady deepening of store‑brand penetration across multiple categories. Refrigerated and fresh perimeter items posted the strongest dollar‑share gains, followed by frozen foods, shelf‑stable beverages and even alcohol. This breadth of growth signals that private labels are no longer confined to low‑price staples but are expanding into higher‑margin, perishable categories.

Several forces are sustaining the momentum. Households facing tighter budgets continue to gravitate toward the value proposition of store brands, while a new generation of shoppers—particularly Gen Z—places premium on quality, transparency and health attributes. Private‑label manufacturers have responded by stacking on‑pack claims such as organic, protein, vegan and gluten‑free, often matching or surpassing national brands. The club channel alone accounts for 47 % of private‑label growth, underscoring the importance of bulk‑oriented distribution, while mass and grocery retailers contribute the remaining share.

Looking ahead to 2026, analysts expect growth to normalize rather than accelerate, as name‑brand manufacturers intensify innovation, pricing tactics and digital outreach. Retailers that wish to preserve the private‑label upside must invest in targeted product development, sustainability storytelling and omnichannel engagement to deepen consumer trust. Aligning product portfolios with evolving wellness and sustainability expectations will differentiate leaders from laggards, turning private‑label from a price‑driven alternative into a strategic growth engine within the broader retail ecosystem.