# Private Label Takes 25% of US Grocery Units as National Brands Charge More Per Item

*Dollar growth trails unit growth — the pricing gap reveals the arbitrage smaller brands can exploit.*

By **Jenny Huang Goodman MPA MSc MHSA, Principal** — The Stash Edge, Hako Shikin LLC.
Published 2026-08-20.

Canonical: https://www.pops4.com/stash/articles/private-label-us-grocery-market-2026-08-20t06-5
Subject: Private label (US grocery market)
Tags: private label, grocery pricing, unit economics, value positioning, category strategy

---

Private-label brands captured nearly **25%** of all US grocery units sold in the first half of 2026, according to Food Navigator citing midyear industry data. National brands grew faster in dollar sales over the same period, but lost ground in unit volume. The divergence is a pricing story: shoppers bought more store-brand items while national brands extracted higher revenue per unit sold.

The mechanism is straightforward. Private label wins on price per unit, national brands defend on margin. When a category sees private label gain unit share while trailing in dollar share, the national player is charging materially more per item — and holding just enough brand equity to sustain it. The grocery channel tolerates this because private label delivers volume and national brands deliver margin mix. For a physical-product brand outside grocery, the insight is the same: if you cannot win on absolute price, you must justify a premium with a feature the buyer cannot replicate at lower cost.

The **25%** unit-share figure reflects sustained consumer behavior, not a one-quarter anomaly. Private label has been gaining for years, but the persistence through 2026 — a period when inflation moderated and discretionary income improved — signals that price sensitivity is structural, not cyclical. Shoppers who traded down during inflation did not all trade back up. That creates an opening for any brand that can credibly deliver national-brand quality at a private-label price, or that can justify a premium with a tangible, immediate benefit the buyer experiences before purchase.

The steal works in two directions. If you sell a consumable physical product and your price sits above the category median, you need a reason visible at shelf or in the product shot. Ingredient callout, material upgrade, user validation, performance metric — something the buyer can verify without opening the package. If your price sits at or below median, you lean into that and make the value case explicit. The mistake is sitting in the middle with neither story.

A small brand running this play starts with competitive pricing research: pull the top **10** items in your category on Amazon or at a specialty retailer, note the price per unit or per ounce, and map where you land. If you are premium, audit your product detail page or packaging for the justification. If it is not there in under **five seconds** of buyer attention, add it. If you are value, state the price advantage in the listing title or on-pack callout. One DTC cookware brand added "30% less than Le Creuset, same enamel spec" to its hero image and saw conversion lift within a week. Another added "$8.50 per pound, grocery aisle frozen is $12" to its jerky packaging and moved **40%** more units at a farmers market the following month.

The broader pattern: when a category polarizes on price, the middle weakens. Private label takes the value end, premium national brands hold the top, and the middle-tier national brands lose unit share to both. A new entrant or small brand should pick a side and build the entire go-to-market around it. Price at the median and you compete on everything at once. Price at an extreme and you compete on one variable with a clear counter-party.

## The takeaway

When private label gains unit share but trails dollar share, the pricing gap is your entry wedge or your coffin.

---

## 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