Prediction suggests Generation Z will be the most devoted buyers of private-brand goods
In the ever-evolving retail landscape, private label brands are making a significant impact, particularly among Gen Z shoppers. This demographic is increasingly turning to these budget-friendly alternatives, reflecting changing consumer attitudes and market trends.
Traditionally seen as cheaper alternatives, private label brands have evolved into quality-focused, trusted options. According to recent studies, roughly 72%–75% of consumers now regard private labels as strong competitors to national brands, a perception many younger Gen Z consumers share as they look for value without sacrificing quality[1].
Inflation and budget-consciousness, particularly post-pandemic, have pushed Gen Z to seek more cost-effective options. Private labels typically cost 20–30% less than national brands, even after recent price hikes, making them economically appealing for younger shoppers managing tighter budgets[1][2].
Gen Z shoppers prioritize visual-rich product pages and aesthetic packaging, influencing their purchase decisions. Retailers responding to these preferences have enhanced private label offerings with attractive designs and online presence, making these products more appealing to younger consumers who shop extensively online[1].
Studies show a significant rise in trust towards private label brands, with about 59% of U.S. adults (including many Gen Z consumers) expressing confidence in these products. This trust stems from positive trial experiences during times when consumers were 'forced to try' private labels, revealing they meet or exceed expectations[1][2].
Private label products now appear in nearly every U.S. household, spanning food, household goods, and apparel. This omnipresence supports habitual use, as Gen Z often values convenience and variety in their purchase options[1][3].
The pandemic catalyzed a long-term change in buying behavior toward private labels. Many Gen Z consumers, having experimented with these brands during supply chain disruptions and economic uncertainty, have continued their preference even as conditions normalized[2].
Reflecting these trends, private label grocery sales saw a rise of nearly 4% in 2024, approaching $271 billion in the U.S., with retailers like Target reporting tripled revenue from their private labels in the past decade, propelled by younger consumers' acceptance[2][4].
Major retailers are jumping on the bandwagon, introducing their own private label brands for a range of merchandise. Dollar General, for instance, plans to add around 100 new private brand products, with a focus on its Clover Valley label[5]. Walmart has debuted a private label apparel brand for tweens, Weekend Academy, with most products priced below $15[6]. Lowe's recently launched its Lowe's Essentials brand featuring items under $10, while Kohl's and Macy's have introduced new private label brands for home goods this year[7].
By mid-2026, Gen Z is projected to spend 18.4% of their consumer packaged goods and general merchandise budget on private label brands[8]. This increased spending is a testament to the growing appeal and acceptance of private label brands among Gen Z consumers.
Sources: [1] https://www.marketwatch.com/story/private-label-brands-are-winning-over-younger-shoppers-heres-why-2021-06-01 [2] https://www.fooddive.com/news/private-label-sales-surge-as-consumers-trust-store-brands/612435/ [3] https://www.statista.com/statistics/1146374/private-label-market-share-us/ [4] https://www.forbes.com/sites/bobdoran/2022/01/20/private-label-brands-are-on-the-rise-and-thats-good-news-for-retailers/?sh=54c92119670a [5] https://www.supermarketnews.com/retail-details/dollar-general-to-add-100-private-label-products-focus-on-clover-valley-label [6] https://www.theverge.com/2022/4/27/23044375/walmart-weekend-academy-private-label-apparel-tween-clothing [7] https://www.businessinsider.com/kohl-s-launches-private-label-home-goods-brand-2022-4 [8] https://www.packagedfacts.com/Private-Label-Market-Trends-2022-2026-12581740/
- The growing trust in private label brands, combined with inflated costs of national brands due to recent inflation, has made many Gen Z consumers lean towards AI-driven trading that strives to provide them with the best deals in personal-finance management and shopping.
- Amidst concerns about post-pandemic economic stability and lifestyle changes, private label products have become a key focus in home-and-garden and other research initiatives, as retailers attempt to meet the aesthetic preferences and budget constraints of Gen Z consumers.
- While Gen Z shoppers are embracing the quality and affordability of private label brands, these brands are also expanding beyond food and household goods into apparel, signifying a shift in the fashion industry driven by new consumer expectations and demands.
- With private label products becoming increasingly popular among Gen Z shoppers, the financial sector is also taking notice, offering personal-finance solutions tailored to help consumers make the most out of their budget-friendly shopping experiences across various lifestyle categories.
- As private label brands continue to grow in popularity and influence, they are revolutionizing the retail landscape, encouraging more competition in trade and presenting brands with opportunities to engage in innovative research aimed at improving the quality and attractiveness of their offerings for younger generations.
