# Private Label Hits 24% of US Grocery Units as Shoppers Trade Down on Price

*National brands still win on dollars, but unit volume tells the migration story retailers are banking on.*

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

Canonical: https://www.pops4.com/stash/articles/private-label-us-grocery-2026-08-08t15-6
Subject: Private Label (US Grocery)
Tags: private label, grocery, retail strategy, shelf positioning, unit economics, price competition

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Private-label brands captured nearly **24%** of all US grocery units sold in the first half of 2026, widening their lead over national brands in volume share, according to Food Navigator. National brands still grew faster in dollar sales during the same period, but the unit divergence marks a structural shift: more shoppers are choosing store brands when price matters, and fewer are trading up.

The mechanic is straightforward. Private label grew unit share while national brands held dollar share because shoppers bought more lower-priced items. Retailers stock their own brands at price points **15-30%** below national equivalents, capture the margin difference, and still deliver perceived value. The customer sees savings. The retailer sees category control. National brands see volume erosion even as they raise prices to protect revenue.

This works because private label has closed the quality gap in categories where differentiation is low. Pasta, canned tomatoes, paper goods, batteries—functional parity is now table stakes. Shoppers no longer assume the national brand is better; they assume it costs more. Retailers reinforce this by placing private label at eye level, running promotional cycles that favour their own SKUs, and using loyalty data to target price-sensitive segments with tailored offers. The unit share gain is not accidental. It is merchandised.

For a physical-product brand selling into grocery, the lesson is position or price, not both. If your product competes on function alone, you are now competing with a retailer who controls the shelf, the data, and the margin structure. The play is to own a dimension private label cannot easily copy: a specific use case, a ingredient story, a format innovation, or a brand world that creates separation. If you cannot own that dimension, you sell on price and accept that you are renting space in a category the retailer will eventually colonize.

Smaller brands can steal this by building their own private-label relationships as manufacturers. White-label a proven SKU to a regional chain, a DTC subscription box, or a corporate gifting platform. You control cost, they control distribution. You get guaranteed volume without fighting for shelf space. Alternatively, if you sell direct, adopt the private-label pricing model in reverse: position your brand as the premium alternative to both national and store brands, but price it closer to national than to luxury. Capture the customer who wants better than store brand but refuses to pay the branded premium. That margin band is now **15-30%** wide and growing.

The pattern is clear. Retailers are using private label to reclaim margin and control. National brands are raising prices to defend revenue. The customer is voting with units, not dollars. If you are a small brand in a functional category, your move is to either own a story the retailer cannot tell or become the manufacturer the retailer calls when they want to build that category themselves.

## The takeaway

Private label wins units; national brands win dollars. Own a dimension store brands can't copy, or become their supplier.

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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
- Client dashboard: https://dashboard.pops4.com/
- Catalogue: 70,000+ products, 200+ brands