In a new report by The Food Industry Association, a majority, 54%, of shoppers say they plan to buy "much more" or "somewhat more" private-label brands in the future.
Only 26% of those surveyed said the same of national brand groceries, such as Charmin, Tide or Frito-Lay.
Private-label groceries at big-box and warehouse retailers — such as Target's Good & Gather and Costco's Kirkland Signature — have been slowly gaining favor with consumers, according to data from Morningstar.
The most obvious and commonly cited benefit of purchasing private label is price, but it seems shoppers also believe these products are better.
Fifty-one percent of those who plan to buy more store-brand groceries said they would do so because of taste and 47% said because of quality.
Brands like Costco's Kirkland Signature are considered "cool," says Michael Krupski, a clinical assistant professor of operations management and strategy at the University at Buffalo.
"They are providing what feels like an experience beyond what private labels have been able to provide in the past," he says.
Where consumers used to see a worse product for a low price, many now see a comparable or even a superior product for a better price.
'Kirkland now provides some meaning'
The shift in consumer attitude could be because retailers are presenting their private-label products differently now than in years prior, says Noah Rohr, an analyst at Morningstar.
"They are giving private-label products better shelf space and advertising them more," Rohr says.
Target, for example, is promoting sweets from its private label Favorite Day next to name-brand treats from Pillsbury and Frito-Lay in its weekly ad. Seeing an in-house brand on the same ad sheet or same shelf as a name brand signals to consumers that perhaps the quality isn't so different.
Krupski believes the Covid-19 pandemic catalyzed private-label growth, while inflation and a "shrinking consumer wallet" forced shoppers to adapt.
Walmart's Great Value groceries saw a 9% increase in sales between 2021 and 2023. Costco's private-label grocery sales went up 4% between 2017 and 2022.
The quality of store-brand products might actually be getting better, as retailers use national-brand groceries as a blueprint to create and manufacture their own offerings.
"Stores, to an extent, are reverse engineering national brands down to specific ingredients," he says. A big fan of Ritz crackers? Walmart sells a 13.7-ounce box for $3.88. But for more than a dollar less, $2.72, you get their store-brand version, which clearly mirrors the name brand.
Private labels now have some cachet, Krupski says. There are TikTok and Instagram accounts dedicated to finding the best Kirkland Signature products, including branded clothing such as sweatshirts and sandals.
"Private labels used to be brand-agnostic," he says. "Kirkland now provides some meaning."
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