In recent times, private label products, commonly known as store brands, have been making significant strides in the grocery sector. According to the latest Private Label Trends Tracker by Numerator, every U.S. household purchased at least one private label grocery product in the last year, illustrating the widespread acceptance and demand for these offerings.

Private label products currently command a substantial 23.7% market share within the grocery sector. This impressive figure places it among the largest store brand segments, trailing only behind categories such as office supplies and home improvement tools. Notably, ALDI imports private label items, with an astonishing 80% of its unit sales attributed to store brands. Trader Joe’s follows closely, with a 69% share, showcasing the deep integration of private labels into their business models.

Walmart, a leading player in the retail industry, continues to strengthen its private label presence. The retailer boasts brands like Great Value and Equate, which have reached over 50% penetration in U.S. households. Other retailers such as Costco and Sam’s Club also report substantial volumes of private label sales, demonstrating a clear trend in consumer preference for these products.

Shoppers are increasingly recognizing the value of private labels, with 58% believing that these products offer above-average quality for their price. This perception shift is critical for retailers looking to expand their private label offerings and can drive future sales growth in the sector. As the landscape continues to evolve, the dominance of private labels is something that both retailers and consumers will keenly watch.