Dive Brief:
- Club retailers and supermarkets both recorded year-over-year dollar and unit share gains for private brands, according to Circana data cited in FMI — The Food Industry Association’s The Power of Private Brands 2026 report.
- Mass retailers, dollar stores and drug stores recorded declines in both unit and sales share, while convenience stores remained mostly flat.
- About 43% of surveyed shoppers plan to buy private brands somewhat or much more, compared to 27% who said the same for name brands, per the report.
Dive Insight:
Club stores and grocers — the retailers with the highest share of private brand spending — have recorded both dollar and unit sales gains in a competitive retail environment, FMI noted.
Clubs saw a 0.7 percentage point increase in both metrics, while grocers brought in more modest gains during the 52-week period ending March 22, the report found. Dollar stores and drug stores lost half a point in both unit and dollar shares, while mass retailers saw a 0.3 percentage point decline in dollar sales and a 0.1-point decrease in units.
While affordability remains top of mind for consumers, private brands’ appeal to shoppers extends beyond just price, FMI found. In recent years, quality, taste and packaging appearance have grown as reasons for why shoppers buy private brands, the trade group noted in the report. Brand trust is a top reason for buying store brands, with 57% of the surveyed consumers selecting that factor after best value and taste, according to the report.
How these factors influence consumers, though, varies by category, FMI pointed out. While “best value” influences purchasing decisions for shoppers in most categories, it has less sway for baby food, coffee and tea, packaged alcoholic beverages and plant-based meat alternatives.
“Taste is a key driver for at least one-half of shoppers buying fresh meat and seafood, fresh bakery items, deli foods, ready-to-drink beverages and plant-based meat alternatives. Trust of the brand is most important for categories such as health and beauty care products,” according to the report.
Brand loyalty, coupons and the influence of family and friends can also impact which brands a shopper buys, FMI noted.
When it comes to reducing purchases, only 4% of shoppers said they bought fewer private brands, while 17% said the same for name brands — another indicator that private brands remain sticky with consumers amid food affordability concerns. Just over half of shoppers said they are very likely to continue purchasing private brands even if grocery prices go down, FMI found.
Top-growing sales drivers for private brands included dried meat snacks, wine and refrigerated baked goods, which all recorded year-over-year growth above 20%, according to Circana data cited in the report. Refrigerated seafood, coffee grounds and baking items also recorded sales growth in the teens.
FMI’s report is based on a survey of 1,495 U.S. grocery shoppers conducted between March 13 and March 18 as well as data from Circana.
