Two new reports from Circana, Global Private Labels: Category Transformation or Simply Competition and Private Labels in the U.S.: Meeting Consumers Where They Are, reveal that the private label market continues to gain momentum, albeit at a more moderate pace in 2025 compared to the two preceding years. In the U.S., private label represents nearly one-quarter of unit share, with dollar sales exceeding $300 billion. In Europe, private label accounts for roughly half of all unit sales, and in Australia, private label has nearly 40% unit share, expanding beyond food into general merchandise.

While price has long been a factor in the appeal of private label offerings, the latest insights indicate that store brand expansion continues beyond inflationary periods. Beyond the ongoing macroeconomic pressures that affect choices at the point of sale, growth is stemming from shoppers’ lifestyle shifts and their desire for innovation.

So, what’s next? Circana’s global report and deeper dive into U.S. markets identify four trends shaping the future of private label, with implications for retailers, manufacturers, and consumers.

Beyond Belief

It’s increasingly important for retailers and their manufacturer partners to build unshakable trust in private label products. Circana’s research shows that 80% of shoppers think it’s important to buy a brand they trust. In today’s U.S. market, an even 60% of shoppers say they “completely trust” or “somewhat trust” private label and national name brands, although name brands garner 20% of the “completely trust” vote sentiment compared to 16% for store brands. To prove store brand integrity among their customers, retailers are taking steps like focusing on clean ingredients and transparency, emphasizing sustainable practices and responsible sourcing, and backing private label quality with extended return policies and satisfaction guarantees.

All’s Well

Driven by shoppers’ interest in quality, sustainability, and clean ingredients, the push for healthy living is set to influence private label trends as retailers become wellness hubs. Consumers recently shared their top wellness goals with Circana researchers, including their interest in losing weight, staying healthy and living longer, and looking and feeling better. Retailers are aligning to those goals by adding more wellness-focused private label products, including those aimed at GLP-1 medication users and sub-ranges that address different health needs. Bundling health-related products and services, like fitness training memberships, under store brand umbrellas is another emerging trend.

Experiential Excellence

As retailers and brands collaborate to deliver experiences that delight shoppers, many continue to focus on innovation. From promoting one-stop stops to serving customers at experiential onsite cafés to using technology to create better navigation, retailers are enhancing the shopper journey at many points with products and services that elevate their own brand.

Advances in AI bring instant commerce into the mix. This technology enables highly personalized product recommendations and autonomous, agent-based purchasing decisions that streamline the shopping experience.

Taking It Personally

Even as AI and solutions such as retail media networks provide more personalization and inspiration, private label players will be guided by the importance of making deeper, smarter connections with consumers. That human-centric perspective improves trust and loyalty among shoppers, especially younger consumers who are influencing current and future habits. Circana’s research shows that Gen Z shoppers in the U.S. rate the quality of private label products higher than every other generation. Store brands around the world are engaging these younger consumers through social media channels and by creating viral moments.

Circana’s insights point to further private label growth, with retailers and their manufacturer partners making a variety of plays to appeal to shoppers who are driving trends. Circana projects a growth range between –0.2 to +1.5-points for private label unit shares in the aforementioned European countries in 2026, with a –0.2 to +0.5-point range in the U.S. and a 0.0 to +0.2-point range in Australia.

To explore more findings and analyses from the reports, watch Circana’s recent webinars.