Private brands continue to strengthen their position with U.S. consumers, according to a new report from FMI – The Food Industry Association, which found growing household penetration, rising shopper loyalty, and increasing importance in store selection decisions.
The report, The Power of Private Brands 2026: Consumer Trends – From Stores to Homes, found that 92% of grocery shoppers currently have store-brand products in their 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.
Private-label sales also continued to outpace national brands. According to Circana data cited in the report, private-brand dollar sales increased 2.8% during the 52 weeks ending March 22, compared with 2.6% growth for national brands. Unit sales rose 0.6%, compared with 0.2% for manufacturer brands. Private brands now account for 22.6% of total CPG dollar sales and 24.4% of unit sales.
Perhaps most notably, FMI found that private brands are increasingly influencing where consumers choose to shop. Fifty-six percent of shoppers said their primary store’s brand is “very” or “extremely” important in their decision to shop there, including 21% who described it as extremely important.
The report also suggests private-label momentum extends well beyond price. Among shoppers who increased their private-brand purchases, 39% cited quality as a reason, while 37% pointed to taste. FMI noted that taste as a purchase driver has increased from 26% in 2023 to 37% in 2026, while quality rose from 30% to 39% over the same period.
Health and wellness continue to emerge as opportunities for store brands. Thirty percent of shoppers said they actively seek health attributes such as protein, fiber, lower sugar, or gluten-free options when purchasing private-label products, while 78% of those shoppers said they are successfully finding those attributes.
Younger consumers appear particularly engaged. Fifty-nine percent of Gen Z shoppers and 52% of Millennials reported increasing their private-brand purchases over the past year, compared with 49% of shoppers overall.
Here’s why it matters: For years, private label was viewed primarily as a margin enhancer and value alternative. FMI’s latest findings suggest it has become something more strategic. With more than half of shoppers saying a retailer’s own brand plays a major role in where they choose to shop, private brands are increasingly serving as a point of differentiation in a marketplace where most retailers carry many of the same national brands.
