One thing moving markets

…is the proliferation of private label brands. Generic options are now becoming the most popular products on shelves.

Private label popularity

A report from Retail Dive found that more than half of all U.S. grocery shoppers bought more private brand goods in 2024, compared to just 28% for name brands.¹ About 46% of consumers say they plan to keep buying more from private label brands during the course of the next year, while only 27% said the same for name-brand items.

Private label brands, aka store brands or generic brands, are typically less expensive than household name brands, and are often similar, if not identical ingredients. The success of private labels is also partially due to their variety. With the sheer quantity of private label products on the rise, there are simply more options for consumers, whether they’re buying milk, paper towels, or vegan pistachio ice cream. In the same survey, consumers said they planned to buy more private-label brands in categories such as paper products (44%), refrigerated dairy items (43%), and frozen foods (40%).¹

The largest private label retailers are not necessarily the nation’s largest retailers.² Coming in at number one is Aldi, followed by Trader Joe’s, then Costco. Grocery stores aren’t the only top favorites — Lowe’s and Home Depot also make up the top 10.

As far as major retailers go, Walmart also made it into the top 10, with Target just outside. But that could change soon. Perhaps recognizing the power of store brands’ surging popularity, both companies rolled out new private label lines this year.

Walmart’s “bettergoods” offers more than 300 food items, including plant-based and vegan options.³ Meanwhile, Target launched “dealworthy”, a line of some 400 products across many consumer goods categories, with most ringing up at $10 or less.⁴

Food’s big bite

Since 2020, the cost of groceries in the U.S. has risen more than 25%. Well over a third of U.S. consumers (41%) switched to private-label brands during the pandemic, according to a 2022 report from the Food Industry Association, either because of supply chain disruptions or because of higher prices.⁵ Empower research shows more than 3 in 5 Millennials and Gen Zers shop at the dollar store for groceries and household goods (63%).

Costco is a pop culture favorite

Costco’s Kirkland brand has developed a strong following. The private label brand, which makes everything from baked goods to sweatpants, comprises almost 25% of the warehouse club’s total business.¹

The popularity goes beyond sales and into social media trends with accounts devoted to highlighting the best Kirkland-brand goods.

And a few top headlines

Back-to-school shopping is giving parents sticker shock.

• A survey found that most parents may have budgeted around $500 for new clothes, supplies, and books — but actual costs are closer to $900.⁶

Celebrity beauty brands are blowing up.

• In 2023, revenue from celebrity beauty companies increased by 58%.⁷ More than 50 brands have been launched by celebrities and social media influencers since the start of the decade. Actor Blake Lively most recently joined their ranks with a new hair care line.

Disney raised prices for its Disney+, ESPN+, and Hulu streaming services.⁸

• Most prices of Disney-owned services will rise $1 to $2 in the coming months, but the price of its ad-free trio bundle will stay the same at $19.99 per month.

Taco Bell sales stay caliente.

• Despite increasingly cost-conscious consumers Taco Bell sales grew 5% in the second quarter of 2024, thanks in large part to its appealing value menu.⁹