July 2, 2025 – Innova Market Insights’ 360 Report Private Label Trends in Food & Beverage in the US explores how rising consumer trust and growing retailer investment are fueling steady growth in the US private label market. While value remains central, evolving quality expectations and innovation are redefining the competitive landscape. This report analyzes product launch trends, consumer insights, and future opportunities—revealing how private label is gaining ground despite continued gaps in emotional appeal, indulgence, and functional claims. Part of Innova’s broader 360 Trend Reports series, this in-depth report connects global data, market performance, brand strategy, and ingredient developments to help companies make smarter, faster decisions.
Price Defines Quality
When asked about what criteria US consumers use to assess the quality of food and beverages, price came out on top, with 57% of respondents citing it as a key criterion. Perhaps instinctively, brands that trade primarily on low prices will have to work harder to demonstrate quality. Ingredient sourcing and quality can play an important role in establishing how private label brands stack up in the big picture.
Private Label Purchases Rising
Nearly one-third of US consumers report increased private label purchases; a 19% net gain. In contrast, name brands saw a 13% net decline, with nearly 1 in 3 consumers reducing their purchase of name brands. 34% of US consumers say they will buy cheaper items and 26% will buy fewer items to spend less on food and drink in 2025, teeing up not only store brands but also retailers to go on the offensive, to support, and win consumers.
Reinforce Quality as Much as Value
Consumers’ first instinct is savings, not necessarily store brands, indicating that retailers will have to do more than rely on price. The grocery retail environment is already competitive and is poised to become even more so, with promotions and incentives to sustain traffic.
Even with substantial recognition of improved quality, value perceptions still dominate consumer perceptions of US private label programs. The economic volatility of 2025 is likely to bring more opportunities for brands to gain traction by value, but they can earn loyalty through taste. While perceptions are improving and private label purchases are growing, the reasons US consumers have increased their purchasing of national brands (albeit to a lesser extent) is because they still hold the advantage on many of the product characteristics that define quality. Developing and marketing private label lines and products should resemble those of a branded product.
Brands Still Win on Key Qualities
Despite rising perceptions, private labels continue to trail name brands in areas such as quality and novelty, yet are often considered comparable in key features such as health, variety, and sustainability. While for the time being it may be essential to compete first on price and quality comparisons, to drive traffic and manage product shifts, it’s also a good time to grow consumer awareness of full lines, tiered offerings and better-for-you positioning. Think about mix-and-match bundling incentive promotions, in-store merchandizing, and classic sampling programs.
Appeal to Gen Z and Millennials
Generation X and Boomers drive most shifts in private label, but focusing on young consumers like Gen Z and Millennials is key for long-term growth. Private label trends show that these younger groups are increasing private label purchases in the US, but less strongly, possibly trading down in dining and food habits. They are prominent snackers, suggesting that expanding the snack aisle with fresh, portable, and creative options might attract them. Millennials and Gen Z value environmentalism, functionality, novelty, and ethics, seeking affordable products that meet sustainability, health, and innovation expectations. Private label strategies should differentiate, emphasizing value for older consumers and enhancing quality, social impact, and experiential elements for younger consumers.
Expand Private Label Lines
Accelerated store portfolio expansion and product promotion, particularly in fresh, premium and functional food and beverage, should move throughout the store. Increasing trial launches will be key to creating fans of private label brands and retailers. Retailers have increased the number of private label launches, addressing growing consumer demand for affordability with high-quality products. Private labels also provide retailers with a strategic lever, not just to meet demand but to differentiate, build loyalty, and enhance control over category dynamics.
Turn Transparency into Trust
Consumers will find price increases more tolerable if they understand and buy into the reason for the increases. Price increases must be accompanied by honesty, transparency and, when possible, connection to efforts to combat corruption and unrest. Private label trends reveal that 30% of US Consumers consider honesty and transparency a core value. 33% look for more honesty and transparency from food and beverage brands.
Private Label Product Launch Trends
Private label launch activity is strongest in fresh, staple and impulse categories, aligning with existing market strengths. Private labels in these categories help retailers drive store loyalty through competitive pricing on staples while obtaining higher margins in impulse and fresh-prepared offerings. Growth in snacks, bakery, and hot drinks innovation as a percentage of those category launches highlights increased retailer investment in impulse-driven and convenience-led private label products.
Aside from Aldi, which operates almost exclusively with private labels, Walmart stands out as the leading US retailer driving private label innovation. Recent launches under Bettergoods reflect a strategic focus on premium, prepared and health-forward formats, signaling a broader push beyond core value. Ahold Delhaize expanded private label innovation in 2024, particularly through Nature’s Promise and Taste of Inspirations, aligning with its goal to grow private label sales share to 45% by 2028.
Innovation in private label is outpacing branded (non-private label) and total food and beverage, with a 4% CAGR in new product launches since 2020. Growth is mainly driven by retailers’ efforts to capture consumer demand for value without sacrificing quality, and external factors such as inflation, economic uncertainty, and supply chain disruptions, prompting retailers to develop in-house solutions.
What’s Next in F&B Private Label Trends in the US?
Retailers can continue expanding private label innovation in the US, especially in premium and value-driven segments, as consumers grow more trusting of store brands. Private label suppliers have an opportunity to invest in agile supply chains to respond quickly to shifting consumer demand and pricing pressures.
Retailers can focus on health and functional claims to enhance product value in private label F&B. Marketing efforts should be tailored to younger consumers through bold packaging and social impact storytelling. Increased emphasis on environmental impact, social responsibility, and health-focused claims can help connect with Millennials and Generation Z. Retailers that offer more snackable, fresh-prepared, and impulse-driven products, such as grab-and-go snacks, bakery items, and small portions, can increase consumer appeal further.
This article is based on Innova’s Private Label Trends in Food & Beverage in the US report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more
