Private Label’s Surge: How Brands Still Win
- Jon Allen
- 3 days ago
- 2 min read
Private label (store brands) isn’t “coming.” It’s here—growing, confident, and better funded than ever. In 2024, U.S. store brands set record shares and surpassed $270B in sales; 2025 projections push even higher. That’s not a blip; that’s a shopper habit.
Why private label is winning (and what to do about it)
Value signaling. Inflation retrained shoppers to calculate cost per use, not just list price. Store brands translated that math into shelf power.
Quality parity. In many categories, taste/quality “surprises” are now expected, eroding the old stigma.
Assortment discipline. Retailers decide which stories get facings. Private label gets home-field advantage.
Still, brands win every week by being specific.
Tune your price–pack architecture (PPA)
Offer a clean entry pack (budget threshold intact) and a value pack (stock-up math). Keep psychological price lines ($2.99 / $4.99 / $9.99) and avoid “$10.49 cliffs.” This makes your value story obvious at a glance.
Anchor to a real shopper edge
Own one visible, testable difference: faster cook time, fewer ingredients, allergy-friendly, or a usage moment (e.g., “weeknight win under 10 minutes”). Attribute-based discovery is how search works online; too many brands miss easy wins in product data.
Stop blanket discounting
Trade smarter:
Use multi-save and bundles that raise units without wrecking the baseline.
Place value SKUs near pantry staples (rice/pasta/beans) during tighter weeks.
Build proof, not promises
Velocity (units/store/week), repeat, and contribution vs. private label—bring receipts to the line review. Private-label dollar and unit shares are at record levels, so you’ll need proof to secure space.
Fictional example (for illustration only): A mid-priced pasta sauce trims the 24-oz to $4.99 and launches a 3-pack online for SNAP/EBT shoppers, bundling pantry fill-ins. The brand pairs a “feed-four, under $8” recipe card with a two-week multi-save. Result: private-label share holds, but the brand’s promo lift beats target without nuking baseline.
What to ask your merchant
“What thresholds convert best in this aisle right now?”
“Can we co-feature our value pack near rice or pasta for two weeks?”
“Here’s our good–better–best ladder if shoppers trade down—OK to load?”
Bottom line
Private labels’ surge is real. So is your path to win—if your PPA, attribute story, and promo math are tight.
