Americans Are Buying More Store Brands Instead of Big Name Brands

For years, plenty of shoppers bought the same cereal, snacks, cleaning supplies, and pantry staples without thinking twice about the brand on the package. If a particular name had always worked, there was little reason to try something else. Paying a little extra for a familiar label often felt like a small price for knowing what to expect.

That habit is changing for a lot of shoppers. Grocery bills have gone up, and people are paying closer attention to what they’re getting for their money. Once shoppers start comparing the store brand sitting beside their usual favorite, they may find that the cheaper option tastes just as good or works just as well.

What started as a way to cut a few dollars from the grocery bill has become a regular habit for many households. Store brands now cover almost every part of the grocery store, from milk and frozen foods to snacks, cleaning supplies, and pantry basics.

Here are some of the reasons more shoppers are giving store brands a permanent spot in their carts.

Store Brands
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1. Lower Prices Can Make a Big Difference

Price is probably the easiest reason to understand. Store-brand products are often cheaper than the national brands sitting right next to them, and the difference can become pretty noticeable when you’re buying several items at once.

For a family trying to stretch their grocery budget, replacing a handful of name-brand products can lower the total at checkout. One cheaper item may not seem like much, but making that switch week after week can add up.

That makes store brands especially appealing for everyday products people buy over and over again.

2. Higher Grocery Prices Have Changed Shopping Habits

Rising grocery prices have made many shoppers rethink some of their old habits. When nearly every trip to the grocery store costs more, small price differences become harder to ignore.

Instead of grabbing the same familiar package out of habit, shoppers are checking the shelf price and comparing similar products. If the store brand costs less and looks like it will do the same job, there’s less reason to automatically pay extra for the familiar name.

For some shoppers, trying store brands has become one of the easier ways to keep grocery costs under control.

3. Store Brands Don’t Always Feel Like the Cheap Option Anymore

Store brands used to have a reputation for being the cheaper version that you bought only if you were trying to save money. That perception has changed as retailers have put more time and money into their private-label products.

Some store-brand foods taste remarkably similar to national brands, while household products can perform just as well for many everyday tasks. Once shoppers find a few store-brand products they genuinely like, they often keep buying them.

That first successful swap can make it easier to try another one the next time they’re at the store.

Related: 11 Food Opinions That Americans Just Can’t Agree On

4. The Packaging Looks Better Than It Used To

Store-brand packaging has changed quite a bit over the years. Instead of plain labels that made a product look like the cheapest option on the shelf, many retailers now use attractive colors, modern graphics, and packaging that looks right at home beside national brands.

That can make a difference before a shopper even tries the product. If the package looks appealing and the price is lower, there’s less hesitation about putting it in the cart.

For some shoppers, the old idea that store brands look cheap simply doesn’t apply anymore.

5. Some Store Brands Come From Large Manufacturers

There’s a common belief that every store-brand product is made by a small manufacturer in a completely separate facility from the big brands. The reality can be more complicated.

Retailers hire manufacturers to produce private-label products, and some manufacturers make products for multiple companies. That doesn’t mean a store-brand product is identical to a particular national brand, but it does mean the idea that store brands are always made by completely different companies isn’t accurate.

For shoppers, the bigger takeaway is that the name on the front of the package doesn’t tell them everything about who made the product.

Related: Money Stress Is Pushing Americans Into Existential Crises, New Survey Finds

6. The Difference Can Be Hard to Notice

Shoppers often have strong opinions about their favorite brands, especially with foods they’ve been buying for years. But blind taste tests and other comparisons can sometimes produce surprising results. Without the familiar packaging in front of them, people may have a harder time identifying which product is the national brand.

This can be especially true with everyday staples such as canned foods, baking ingredients, snacks, and basic household products. Once shoppers realize they like the cheaper option just as much, it becomes easier to make the switch.

A few successful swaps can slowly change what ends up in the grocery cart every week.

7. Retailers Are Putting More Work Into Their Own Brands

Store brands have become a much bigger part of the business for many retailers. Instead of treating private-label products as a basic alternative for shoppers on a tight budget, stores are creating entire product lines with their own names and identities.

Aldi, Trader Joe’s, and Costco are good examples of retailers with products that shoppers actively seek out. People often visit these stores with specific store-brand items on their lists rather than treating them as substitutes for national brands.

That’s a big change from the old idea that shoppers buy private-label products only because they’re cheaper.

8. The Overall Value Can Be Hard to Ignore

For many shoppers, the question is less about whether a product has a famous name and more about whether it does what they need. If two products seem similar but one costs considerably less, the cheaper option can make a lot of sense.

That’s especially true for products that get used quickly. Spending less on cereal, paper products, canned goods, cleaning supplies, or snacks can free up money for other things on the grocery list.

Once a store-brand product proves itself, there may be little reason to switch back to the more expensive version.

9. Store Brands Aren’t Just for Tight Budgets

Private-label products have also become more popular with shoppers who aren’t necessarily struggling to afford groceries. Some middle- and higher-income households buy store brands because they see little reason to spend extra on a familiar label if they’re happy with the cheaper product.

For these shoppers, it can be more about getting a fair price than making drastic cuts to the grocery budget. They may still buy certain name brands they love while choosing store brands for everything else.

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