The Rise of Private Labels: Branding Impact

Why shifting brand loyalty could mean opportunity for your product or service

 

By Kim Parrish

The competitive landscape for established brands has changed dramatically. Today's consumers are more value-conscious, more informed, and increasingly willing to look beyond familiar brand names. But this isn't simply a matter of shoppers choosing the cheapest option. Consumers are also reassessing quality, trust, convenience, and the overall value a brand delivers.

According to Deloitte's 2025 consumer research, approximately four in ten American consumers surveyed qualify as value-seekers. Among these consumers, 59% reported switching to store brands or private-label products. This shift creates an important opportunity for emerging brands and smaller businesses that can deliver a compelling combination of quality, value, and a distinctive brand identity.

The rise of generics and private labels.

What was once considered a budget-conscious alternative has become a formidable competitor to traditional national brands. Private-label products are no longer confined to basic grocery items. Retailers have expanded their offerings across food, beverages, beauty, health, pet care, household products, and numerous other categories.

The numbers tell the story. According to the Private Label Manufacturers Association (PLMA), U.S. store-brand sales reached a record $282.8 billion in 2025, an increase of more than $9 billion over the previous year. Private-label dollar sales grew 3.3%, nearly three times the 1.2% growth recorded by national brands. Store brands also reached record market shares of 21.3% by dollar sales and 23.5% by unit sales.

Consumer attitudes are changing right along with those numbers. NielsenIQ's 2026 research found that 58% of consumers don't particularly care whether a product is a national brand or private label—they simply buy what they need. Additionally, 68% consider private-label products a good alternative to national brands, while 69% believe they offer good value for money.

And this trend extends well beyond the grocery aisle. Retailers are investing in more sophisticated private-label identities, packaging, product development, and marketing. The result is a marketplace where store brands increasingly compete on quality, presentation, and customer experience—not just price.

Marketers can learn and prosper from these events.

First of all, we can all see how important branding is in these troubled times. Something creative firms have been saying for years is now crystallizing in the retail aisles and sales floors of the nation—yes, proper branding is everything! Properly branded products will survive the storm, but companies who have allowed their brands to stagnate and lose emotional territory with consumers are going to lose more market share. Established names must take steps to maintain the closest relationship possible to their existing brand advocates, or risk losing many of them in the rising tide of mystery labels and services. Branding firms and advertising shops must be empowered to develop new avenues of loyalty and fresh thinking, new messages of value and trust, to counter the assault of the generics.

Secondly, it's not hard to see solid opportunity for new brands and startups in this environment. Are you looking to launch a new product or service? This may be one of your best chances ever; because current trends and statistics show that consumers are now more willing to try something new!

Here are a few recommendations...

• Seek out and hire an experienced, cost-effective branding firm, to get you started on the right track to success and help you avoid the mistakes commonly made with new branding efforts.
• Work closely with that firm to develop an attention-getting image, to break through the clutter of older brands, snare converts and boost sales.
• Task your ad agency or creative team to develop powerful package designs, point of purchase displays and/or sales materials to surround your product or service.
• Invest in a serious online presence; starting with a professional website—regularly refreshed with relevant content to educate and inform—then add a social media strategy and mobile marketing campaign, to engage your existing and prospective buyers.
• Reach your market with a targeted advertising program, to proudly proclaim your alternative message of value and quality. Note; you don't need a big ad agency to get quality creative work, do some research and compare portfolios.

Those of you with new products and services that offer good value; listen up! Coupled with an attention-getting image, fresh marketing and a timely message, your brand could be poised to gain serious market share—even against the big boys.

Kim Parrish is an award-winning creative consultant, his Orlando advertising firm develops cohesive branding, campaigns, website solutions and SEO, print collateral, and package design for a wide spectrum of companies—from small start-up firms to global brands like Wal-Mart® and NBC/Universal®.

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