Store brands outpaced national brands in unit sales during the first half of 2026, widening a critical gap in the low-growth U.S. grocery market. Over the six months ending June 14, store brand unit sales rose 0.2% while national brand units fell 0.5%—a spread of 0.7 percentage points, according to the Private Label Manufacturers Association (PLMA), citing data from Circana. Store brand unit market share reached 23.8%, an all-time high.

Unit Sales Drive the Story Unit sales—a count of products sold regardless of price—remain the most telling metric of consumer preference. Among 166 food categories tracked, 52% posted private label unit growth over the 52-week period ending June 14. In nonfood, 39% of 164 categories showed private label gains. Pet Care led departmental growth at 4.8%, followed by Beverages (+1.8%) and Refrigerated (+1.5%). Store brands outperformed national brands in five of Circana's six monthly reporting periods so far this year, despite overall softness in household grocery spending.

Dollar Sales Tell a Different Story The picture shifts when measured in revenue.

Store brands posted flat year-to-date dollar sales while national brands climbed 2.2%, with store brand dollar share at 21.2%. The divergence reflects volatile national brand pricing as some competitors cut prices to reclaim switchers while others raised them to absorb higher costs. "Unit sales remain the best measure of consumer choice, and Circana's midyear results—including a record 23.8% unit market share for store brands—underscore the continued strength and growing appeal of private label," said Peggy Davies, PLMA President.

Consumer Behavior Shifts Structurally A Zappi survey underscores the magnitude of the shift: consumers claiming to buy only national brands fell from 21% to 10% in less than a year. More than 90% of respondents changed shopping behavior due to rising costs. "The era of growth driven by price increases is coming to an end," said Natali Kelly, Zappi's Chief Marketing Officer. "For CPG leaders to transform their businesses, they will need to compete on value instead of price, innovating and simplifying their product portfolios in the process. Nearly 70% of consumers would accept fewer options in exchange for lower prices." Kelly added: "This isn't a post-pandemic correction. It's a structural reset and brands still betting on loyalty to absorb their next price increase may be the last to realize it."

Why It Matters

For retailers and foodservice operators, the data signals sustained demand for private label products as a defensive value play. National brand manufacturers face pressure to compete on innovation and portfolio efficiency rather than pricing power alone, reshaping negotiation dynamics with retailers and potentially reshuffling shelf space allocation across channels.

For more insights and trends in the food and beverage sector, check out more articles in The Food & Beverage Magazine family of publications.

Written by FBM Publications Editors