Nearly a quarter of all US grocery units sold are now private label, with private-label brands continuing to outperform national brands in unit sales in H1 2026, though national brands grew faster in dollar sales, per Food Navigator.
ReadingThe steal: if you are a national brand, you cannot out-private-label private label on price. Do not try. Instead, own a specific promise — organic, heirloom, performance, ritual — that justifies the higher unit price and becomes the reason a buyer reaches for you despite private label sitting next to you at 25% less. If you are building a brand from zero, private label distribution gives you unit velocity proof for wholesale. Sell DTC first, then use private label shelf presence to validate demand for a national brand buyer.
MY STASH TAKEPrivate label is no longer a threat; it is a signal. Consumers are willing to buy private label when there is no emotional reason to buy national. So the bar for national brands is clear: be the ritual, not the commodity. Operators launching CPG should study private label supply chains — they move units fast and with minimal marketing overhead. That is the benchmark.
WatchWatch for national CPG brands to reposition from 'better than private label' to 'different category' (premium, ritualistic, performance-first).