FMI: Private labels grow as shoppers prioritize quality and value

ARLINGTON, Va. — Private label products continue to strengthen their position in grocery retail, with new research from the FMI – The Food Industry Association showing that store brands are now a staple in most American households and remain resilient even as inflation pressures ease.

According to FMI’s Power of Private Brands 2026: Consumer Trends – From Stores to Homes report, 92% of U.S. grocery shoppers have private-brand products in their homes, up from 89% a year ago. The study also found that private brand dollar sales increased 2.8% year over year, outpacing national-brand growth.

Nearly half of shoppers reported increasing their private brand purchases over the past year, compared with 31% who increased their national brand purchases. The trend appears likely to continue, as 94% of respondents said they would continue buying store brands even if grocery prices decline.

“This year’s consumer research makes clear why private brands continue to gather momentum,” said Tom Cosgrove, director of industry relations at FMI. “Consumers aren’t just choosing store brands out of habit or necessity; they’re choosing them because they’ve earned the trust of American families.”

The report suggests that factors beyond affordability are increasingly driving store-brand growth. Taste was cited by 37% of shoppers as a reason to buy more private-label products, up from 26% in 2023, while quality rose from 30% to 39% over the same period.

Health and wellness are also becoming more important purchase drivers. Among shoppers actively seeking health-related attributes in store-brand products, 78% said they can find items that meet their needs.

“The data from this year’s report reinforces that shoppers have developed genuine appreciation for store brands that goes beyond price,” said Steve Markenson, FMI’s vice president of research and insights.

The findings underscore the strategic importance of private brands to retailers. More than half of shoppers (56%) said a retailer’s private brand assortment is very or extremely important to their decision about where to shop.

Younger consumers are helping fuel growth. Fifty-nine percent of Gen Z shoppers and 52% of Millennials reported increasing their private brand purchases over the past year, compared with 49% of shoppers overall.

The report also found that social media is playing an increasingly important role in private label discovery. Among shoppers influenced by TikTok content, 82% went on to purchase a store-brand product they saw promoted on the platform.

Methodology: FMI's Power of Private Brands 2026: Consumer Trends – From Stores to Homes report includes findings from a nationally representative online survey of 1,495 U.S. grocery shoppers ages 18 and older, conducted March 13–18, 2026. The research carries a maximum sampling error of +/-2.5 percentage points at the 95% confidence level. The report also includes private brand data points and insights from Circana.