In new research, Circana reports U.S. private label sales have reached $330 billion, capturing a 24% unit share and a 23% dollar share of the total market.

Circana’s global research, Category Transformation or Simply Competition: A Global Private Label Perspective, explores regional approaches to private brands across the European Union, Australia and the United States, while the second report, Private Labels in the U.S.: Meeting Consumers Where They Are, provides a deeper analysis of private label trends shaping the U.S. market.

In the U.S., the food and beverage sector continues to lead this expansion. Private label products now hold a 24% value share within food and beverage aisles. Growth is visible across the store, but recent momentum is strongest in emerging spaces. Club channels are currently the primary growth engine, accounting for nearly half of all private brand growth as consumers seek sustained value.

Additional U.S. Insights:

• Private label innovation remains a critical growth engine with retailers focusing on sustainable sourcing, wellness-oriented products, and premium offerings. Elevated private brands have seen outsized innovation levels, particularly in indulgent snacking and beverages.
• Consumers report trusting store brands as much as name brands for quality products, with private label quality perception growing across categories like food, beverages and non-food items, such as kitchen and paper goods.
• Sustainability and wellness-focused product lines are becoming key drivers of private label growth, with private label loyalists often prioritizing wellness and environmentally friendly options.

Younger consumers, particularly Generation Z, are driving this momentum in the U.S. market. Shoppers increasingly view private labels as high-quality alternatives to name brands. Retailers are meeting this demand by expanding their portfolios to include premium, functional and wellness-focused product lines that rival traditional brands.

The research also highlights strong global performance. In the European Union, private labels maintain a 50% unit share, with significant growth in countries like Spain and France. Across the globe, retailers are building distinct brand equity through investments in product innovation, clean ingredients and sustainable sourcing.

“As we look ahead to 2026, the outlook for private label remains positive, though more balanced,” says Sally Lyons Wyatt, global executive vice president and chief advisor at Circana. “While we anticipate continued unit share growth, the pace will likely be more measured as private label transitions from an acceleration phase into a normalized growth cycle. The key drivers — financial pressures on households, improved quality and trust, strong Gen Z adoption, and the growing influence of loyalty and exclusivity — remain firmly in place, positioning private label for continued success. However, the competitive landscape is intensifying, with name brands stepping up innovation, sharpening pricing and amplifying their social and digital engagement. These dynamics will undoubtedly shape the trajectory of private label growth in the years to come.”

To capitalize on these shifting dynamics, manufacturers and retailers rely heavily on advanced market data to align their private brand strategies with evolving shopper preferences.

“As private brands mature, staying aligned with shifting consumer needs is essential, but inspiring shoppers is what will set leaders apart,” says Lauren Hazenfield, industry advisor at Circana. “Our research indicates that building authentic, deeper consumer connections, especially through wellness, sustainability and meaningful experiences, is essential for retailers looking to create long‑lasting trust and loyalty.”