Retail
Private Label's Premium Push Is Eating National Brands
By FTF Editorial Team·May 13, 2026·6 min read
Kirkland, Trader Joe's, Aldi, and Whole Foods 365 are no longer the cheap option. They're winning premium occasions national brands used to own.
What happened
Private label dollar share crossed 21% of US grocery in 2025, with the fastest growth in premium tiers: frozen entrees, organic dairy, and craft snacks. National brand SKU rationalizations have accelerated at every major retailer.
Why it matters
Inflation taught shoppers private label is often as good as national brands. They're not switching back, even as their wallets recover.
Market impact
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.
Consumer insight
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.
Strategic takeaway
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 cannot copy.
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