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Dive Brief:
By mid-2026, Gen Z is projected to spend more on private label brands than other generations, according to a new report from Numerator. By that time, Gen Z is project to spend 18.4% of their consumer packaged goods and general merchandise budget on private label brands, outspending baby boomers (18.3%), millennials (17.5%) and Gen X (17.2%).
Private label products from brands and retailers like Ulta Beauty, Wild Fable, Trader Joe’s and Costco’s Kirkland Signature are popular among Gen Z shoppers, per the report.
Though Gen Z consumers are forecast to spend more on private label, the cohort has concerns about quality, retailer trust, packaging and design of such brands, according to the report.
Dive Insight:
Though Gen Z previously had hesitation around buying private label products, their budgets and changing perception of store brands are driving an increased consumption of items the category. The category is opening the door for younger consumers to obtain affordable luxuries, per the report.
Beyond the lower prices that private label brands offer, Gen Zers are associating these brands with “innovation, trendiness, and premiumization,” according to Numerator.
“In a retail landscape shaped by economic headwinds, generational turnover, and changing definitions of value, private label brands are emerging not only as budget-friendly alternatives but also as reflections of consumer values,” Numerator said in its report. “And at the forefront of this shift is Generation Z.”
Other research indicates that consumers overall are increasingly seeking store brands. Last year, private label brand sales reached a record high of $271 billion, according to Circana data cited by the Private Label Manufacturers Association. While national brand sales rose 1% last year compared to 2023, private label sales saw a 3.9% bump during that period.
Inflation is one of several factors driving price-conscious consumers to purchase private-label products, according to another Circana study. Gen Z and younger millennials are leading the way with trying owned labels for the first time.
As shoppers warm to store brand products, major retailers have introduced their own private label brands for a range of merchandise. Kohl’s and Macy’s have debuted their own home goods brands this year, Lowe’s recently introduced its Lowe’s Essentials brand featuring items that sell for under $10. Meanwhile, Dollar General announced a plan to add around 100 new private brand products to its lineup, with a focus on its Clover Valley label.
Walmart this week announced the debut of a private label apparel brand for tweens, dubbed Weekend Academy, wherein most products are priced below $15.