New research from NIQ found that globally, private labels have been “steadily gaining momentum, with their growth often outpacing that of national brands,” according to a report. Research showed that over the past year, private label delivered nearly 8% of CPG sales growth.

“Economic uncertainties have made value a priority for many shoppers, prompting them to consider private labels as reliable options that deliver quality at an attractive price. Simultaneously, retailers are elevating private labels through customization and innovation, introducing premium and niche offerings that cater to trends like sustainability, wellness and convenience,” wrote the research firm.

NIQ found that 40% of surveyed consumers would switch to buy a private label product they enjoy even if it costs more, while 50% said they’re likely buying more private label products than ever before.

In 2009 private label accounted for 15% of CPG spending, and it currently accounts for 22%.

NIQ said that private labels have the potential to become not just alternatives to national brands, but essential assets that drive loyalty, retail growth and long-term success.

Looking ahead, the “private label landscape is set to evolve even further. Retailers must navigate an increasingly dynamic market by constantly understanding their consumer preferences and leveraging real-time data to preempt market shifts. Success will be defined not only by the ability to introduce private label products but by the capacity to continuously adapt and optimize offerings based on data-driven insights,” wrote NIQ.

Separately, earlier this week, Love’s Travel Stops President Shane Wharton said that Love’s is expanding its private label line. “We’re working to optimize our supply chain around that, to make sure that we have efficiency and sustainability,” he said. Wharton said Love’s will be launching new fresh juice options in its private label line as well as a gummy candy line and flavored popcorn.

Sales of private label store brands hit a record $271 billion last year, increasing $9 billion from 2023, according to the Private Label Manufacturers Association’s (PLMA).