A US perspective on Simon-Kucher’s Global Shopper Study 2026
Simon-Kucher’s Global Shopper Study 2026 points to a clear shift: private label has moved past a tipping point. While uptake of private label purchasing might have begun as a temporary reaction to economic pressures and rising cost of living, it now represents a structural change in how people shop.
Within the US, consumers driving private label growth are not the ones most brands expect. They are not budget-constrained shoppers looking to save, but rather increasingly higher-income earners making deliberate choices based on quality and value.
Compared to 2025, 44% of higher-income shoppers (earning $5,000 or more per month) are buying more private label, versus 34% of consumers earning less. Private label growth in the US is not being pulled by budget pressure at the bottom. It is being adopted at the top.
This reinforces a broader global pattern. Private label has built trust by consistently delivering quality, value, and choice. In the US, that foundation is now enabling something more: consumers are choosing private label intentionally, not as a fallback.
Private label: A market in motion
Private label has moved from a price-driven substitute to a credible alternative to branded products, with shopper behavior now stabilizing around this shift.
Overall, 42% of US shoppers now predominantly or almost exclusively buy private label products. That figure is unchanged from last year, which signals that these behaviors are sticking.
While price still plays a role in the adoption of private label, it's become less important, with only 49% of shoppers indicating that price matters more to them than it did a year ago, down from 66% in 2025. At the same time, 31% say quality has become significantly more important in their decisions.
This shift reflects a broader change in perception. Shoppers are choosing private label not only because it is cheaper, but because its quality compares favorably to branded products. As private label becomes more competitive on both price and quality, perceptions of brands are weakening. More than half of US consumers, 55%, believe branded products are overpriced without offering a meaningful quality advantage, and 28% say brand plays little to no role in their decisions compared to a year ago.
The premium turn: How quality is driving adoption
Private label growth is increasingly driven by premium offerings, signaling that it is no longer confined to value-seeking segments.
Basic private label remains the entry point, with 36% of consumers buying more than they did a year ago, but premium private label is close behind at 27%.
This marks a clear break from the past when private label was associated mostly with lower quality and more price-sensitive households. Retailers have expanded their strategies and introduced good-better-best architectures that capture different willingness-to-pay levels within the same category. As retailers have invested in quality, packaging, and product development, creating new premium tiers for shoppers to explore, private label now appeals to a wider set of consumers.
As a result, private label is attracting higher-income consumers. Among households earning $5,000 or more per month, 39% regularly buy high-quality or premium private label, compared to 31% of those earning less. For these shoppers, high quality is no longer synonymous with branded products.
As private label strengthens at the top end, the competitive pressure on brands intensifies. If consumers are not trading down, but actively trading across, brands must work harder to justify their premium.
Private label's new strategy: Competing on quality, value, and premium positioning
Private label has moved beyond price-led growth. The next phase will depend on its ability to reinforce value, sustain quality gains, and continue expanding upmarket.
The broader economic backdrop remains supportive. Inflation is expected to rise again in 2026, and while consumer confidence has edged up slightly, expectations for personal finances, especially among middle- and higher-income households, have weakened. Even without acute financial pressure, shoppers remain cautious and value-conscious.
But the bigger shift is structural. Private label is no longer just a fallback when budgets tighten. Consumers are actively choosing it for its quality, meaning what began as a price-driven behavior is becoming a value-driven one.
Three priorities to sustain private label momentum
First, reinforce value without reverting to price competition. As price becomes less central, success will depend on consistently delivering a strong price-quality equation rather than simply being cheaper.
Second, double down on perceived and actual quality. Quality is now a primary driver of choice. Continued investment is critical, but so is making that quality visible and credible to shoppers.
Finally, accelerate premium expansion while defending credibility. Growth is increasingly coming from higher-end private label, including among higher-income consumers. Expanding premium tiers and good-better-best architectures will be key, but maintaining trust is critical. Any inconsistency in quality risks undermining the broader shift in perception that private label has worked to build.
The future of private label in the US: Competing beyond price
As private label quality continues to rise and perceptions shift, brands face growing pressure to clearly justify their premium. The next phase of competition will not be defined by price alone, but by the ability to deliver and communicate real, differentiated value.