Private label brands have secured a record share of the United States grocery market, fundamentally altering the competitive setting for consumer goods manufacturers. Store brands captured 23.8% of unit market share during the first half of 2026, marking a significant milestone as shoppers increasingly abandon national name-brand products. This shift isn’t a temporary fluctuation; data indicates a structural change in how consumers value and purchase everyday items.
According to Circana’s monthly reporting, store brands outperformed national brands in unit sales during five of the first six months of this year. While private label unit sales increased by 0.2%, national brand unit sales dipped by 0.5%. The divergence suggests that the traditional dominance of big-name manufacturers is eroding under pressure from economic factors.
Consumer loyalty to national brands has collapsed. Zappi research shows the percentage of shoppers who buy only national brands plummeted from 21% to just 10% in less than a year. This rapid decline highlights a fraying bond between long-standing manufacturers and their customer base. The survey data further reveals that nearly 70% of consumers are willing to accept fewer product options if it means securing lower prices at the register.
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Numerator’s Consumer Goods Price Index shows prices for everyday household purchases rose 0.70% in June alone, following a 0.51% increase in May and 0.44% in April. Year-over-year, prices are up 3.4%, the highest annual rate in nearly three years. Low-income households have now seen everyday prices rise 35.7% since January 2018, well above the 33.8% national average.
That persistent inflation has forced budget-conscious shoppers to make hard choices. The consumer who is already switching down is doing so against a backdrop of accelerating prices that show no sign of cooling. The stickiness of the change is higher than what manufacturers anticipated.
The persistence of this trend suggests that national manufacturers may be fighting a losing battle if they rely solely on promotional pricing to win back market share. If the inflationary environment remains sticky or prices simply do not roll back to previous levels, the “new normal” for a large segment of the population might permanently prioritize store brands. This could force major companies to restructure their entire portfolio rather than waiting for a return to historical loyalty norms.
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Inflation Drives the Shift to Store Brands
Peggy Davies, president of the Private Label Manufacturers Association (PLMA), noted that unit sales remain the best measure of consumer choice. She stated that Circana’s midyear results indicate the continued strength and growing appeal of private label. Her interpretation suggests that the move isn’t driven by a lack of availability, but by active consumer preference.
The strategic problem for national brand manufacturers is that this is not a loyalty gap that promotional pricing can close. The Zappi data shows shoppers are actively redefining what value means to them. When the cost of living rises, brand heritage becomes a luxury that many households can no longer afford.
The Redefinition of Value
Manufacturers must acknowledge that the return to growth isn’t just about marketing but about addressing the physical reality of shopper budgets. The unit share numbers from the first half of the year confirm that the shift toward store brands is not just a short-term reaction to economic shocks, but a sustained evolution in consumer behavior.