# Private-label brands captured 23.7% of US grocery unit sales in H1 2026, widening their lead over national brands

*Retailers proved shoppers will buy store brands at volume when quality meets price, giving CPG founders a clear path to shelf space.*

By **Jenny Huang Goodman MPA MSc MHSA, Principal** — The Stash Edge, Hako Shikin LLC.
Published 2026-08-07.

Canonical: https://www.pops4.com/stash/articles/private-label-brands-retail-pattern-2026-08-07t18-7
Subject: Private-label brands (retail pattern)
Tags: private-label, grocery, retail, cpg, shelf-strategy, manufacturing

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Private-label brands accounted for **23.7%** of all US grocery unit sales in the first half of 2026, according to Food Navigator, extending a multi-year trend that began accelerating during inflation cycles in 2022-2023. National brands still commanded higher dollar sales growth during the same period, but lost ground in the metric that determines shelf allocation: how many units actually leave the store.

Retailers doubled down on private-label investment because the economics work on both sides of the transaction. Store brands typically carry **25-30%** higher retail margins than national equivalents while offering consumers **15-25%** lower prices at checkout. The gap between unit share and dollar share signals that private-label is winning on volume while national brands hold price. For a physical product founder, this creates an opening: retailers now view private-label partnerships as a growth lever, not a fallback for recession shopping.

The mechanism that makes this durable is perceived quality convergence. A decade ago, store brands occupied the value tier with legitimately inferior formulations and packaging. Current private-label programs in grocery run **R&D partnerships with the same co-manufacturers** supplying national brands, often using comparable ingredient decks and similar production runs. The shopper who bought Kirkland Signature or Trader Joe's house brand in 2020 found it performed at or near national brand parity, returned for a second purchase, and shifted basket composition over time. Retailers captured that loyalty and defended it with **in-store placement, end-cap features, and loyalty program integration** that national brands must pay slotting fees to access.

For a founder of a physical consumable product, the play is to position your brand as the **manufacturing or innovation partner behind a retailer's next private-label line**. You are not competing with store brands; you are becoming one, with your facility and formulation doing the work. Contact the private-label buyer at a regional or national grocery chain with a **short capability deck**: your current production capacity, your SKU range, your compliance certifications (organic, non-GMO, B-corp, etc.), and two or three finished goods you can white-label under their brand within **90 days**. Include unit economics that show their landed cost per unit, your minimum order quantity (aim for **5,000-10,000 units** to start), and a comparison to the national brand incumbent they want to undercut. Lead with categories where you have a differentiated formulation or sustainable packaging that the national brand has not matched. The pitch is speed to shelf and margin accretion, not brand storytelling.

If your production scale is too small for a national grocer's **100,000-unit** minimum buys, target **regional chains** (10-50 stores) or direct-to-consumer subscription platforms launching their own store-brand lines. A regional chain can test a private-label SKU in **two to four stores** with **2,000-5,000 units**, gather sell-through data in **60 days**, and expand if velocity hits their hurdle rate (typically **1.5-2.0 units per store per week**). You provide the formulation and fill; they provide the brand, the shelf space, and the repeat orders. Structure the deal with a **12-month exclusivity window** in their geography, a **unit cost that drops 8-10%** at volume tiers, and a **quarterly business review** where you present line extensions. This is not a one-time fill; it is an annuity if the product moves.

The broader pattern is that private-label growth is now **structural, not cyclical**. Retailers learned during the 2022-2023 inflation surge that store brands defend traffic and increase basket size when national brands take price. Unit share gains held even as inflation moderated in 2024-2025, and the first half of 2026 data confirms the trend is durable. For a founder, the implication is that the fastest path to **seven-figure revenue** in physical goods is not building a DTC brand and fighting for Meta ad efficiency; it is building a **private-label manufacturing partnership** with a retailer who will buy in bulk, reorder on a forecast, and put your product in front of millions of shoppers under their flag.

## The takeaway

Retailers now view private-label as a growth engine, not a recession hedge, creating a clear path for product founders to become their manufacturing partner.

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## Publisher

**Hako Shikin LLC** — Virginia Beach, Virginia. Founded 1997. ASI 217876 · DUNS 18-204-6339.
Principal and author: **Jenny Huang Goodman MPA MSc MHSA**.

- Author: https://www.huanggoodman.com/about
- LLM context: https://www.pops4.com/stash/llms.txt
- MCP endpoint, for AI agents: https://mcp.pops4.com/mcp
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- Catalogue: 70,000+ products, 200+ brands