Private Label's Premium Push Is Eating National Brands

Private label dollar share crossed 21% of US grocery in 2025, with the fastest growth in premium tiers — frozen entrees, organic dairy, craft snacks. National brand SKU rationalizations have accelerated at every major retailer.

Inflation taught shoppers private label is often as good as national brands. They're not switching back, even as their wallets recover.

Expect mid-tier national brands (the 'between premium and value' middle) to lose the most shelf. CPG M&A will pivot toward truly distinctive brands that private label can't easily clone.

Younger shoppers have no brand loyalty to the cereal-and-cleaning-product national brands their parents bought. They trust the retailer's badge — Trader Joe's, Costco, Target's Good & Gather — as much as a CPG name.

If your brand can be replicated by a private-label dupe within 18 months, you don't have a brand — you have a product. Invest in proprietary ingredients, formats, or experiences private label can't copy.