Higher-Income Shoppers Drive Private Label Sales to Record $282.8 Billion

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5.8.2026

Quick Facts

Private label sales hit record $282.8 billion in 2025, growing 3.3% versus 1.2% for national brands
44% of higher-income shoppers ($5K+ monthly) bought more private label in 2026 versus 33% of lower earners
82% of shoppers earning $100K+ increased private label purchases, with half buying ‘very often’

Private label sales reached a record $282.8 billion in 2025, growing 3.3% compared to just 1.2% for national brands. The industry officially crossed the $300 billion mark as store brands captured market share at nearly three times the rate of national brands.

Higher-income consumers are driving this growth. According to Simon-Kucher’s Global Shopper Study 2026, 44% of shoppers earning $5,000 or more monthly increased private label purchases compared to 33% of lower earners. More than 82% of consumers with incomes above $100,000 bought private label products more frequently, with over half purchasing them ‘very often.’

The shift reflects changing priorities. Only 49% of shoppers say price matters more than a year ago, down from 66% in 2025. Meanwhile, 31% prioritize quality in purchase decisions. Fifty-five percent of Americans believe branded products are overpriced without meaningful quality advantages.

Premium private label options drive much of the growth. While 36% of consumers bought more basic private label products, 27% increased premium private label purchases. Higher earners show stronger preference for premium options, with 39% regularly buying premium private label versus 31% of lower earners.

Retailers are responding strategically. Walmart redesigned its Great Value brand and expanded Bettergoods, which features organic and plant-based products. Target’s private label brands generate over $30 billion in sales.

Younger consumers lead adoption trends. Gen Z and Millennials showed 5% year-over-year increases in private label usage. Gen Z’s share of private label spending reached 18.4%, projected to surpass Baby Boomers’ 18.3% by mid-2026.

The trend appears permanent. PLMA projects 4% to 6% compound annual growth through 2030. Seventy-eight percent of shoppers plan to maintain or increase private label purchases regardless of future price changes.