According to Numerator, a market research company, each U.S. household purchases one or more private label grocery items each week.
Emerging private brands include Better Goods by Walmart and Deal Worthy in Target stores. Both brands have grown rapidly since their early launch with triple digit annual expansion albeit from a small base. Competing chains with a high proportion of private label items include Aldi with 80 percent of sales volume, Trader Joe’s at 70 percent and Costco with 35 percent. Walmart and their warehouse subsidiary Sam’s Club have the potential to expand with 31 and 34 respectively of sales volume.
Nearly half of consumers claimed to have purchased private label products in 2024 in response to inflation and the need to remain within budget. Almost two-thirds of those surveyed considered that private label brands provide above-average value. A surprising finding was that only one-third of the respondents felt that private label brands were equivalent to their name-brand competitors. This observation is at variance with alternative surveys in which consumers expressed satisfaction with the quality of private brands and appreciation of lower prices.