Private Label vs. National Brand: Most Shoppers Can’t Tell the Difference

Private Label vs National Brand: Shoppers Struggle to Spot the Difference

The battle between private label vs national brand has never been closer. Today, most shoppers can barely tell the difference between them.

A new study from First Insight reveals that while 71% of shoppers believe they can spot store brands, only 28% actually can. When presented with side-by-side product images, most consumers fail to identify which is private label and which is national brand.

Shoppers Love Finding Brand Duplicates

The popularity of store brands continues to grow, and many shoppers actively look for brand “dupes.” In fact, 47% of consumers have tried a private label product just because it looked like a famous national brand.

This trend even reaches high-income shoppers. About 70% of consumers earning over $150,000 per year are more likely to try private label products that resemble premium national brands.

Private Label Continues to Dominate Grocery Sales

Data from the Private Label Manufacturers Association shows store brands outperformed national brands in the first quarter of 2025. Private labels captured 21.5% of total dollar sales and 23.7% of unit sales across U.S. retail outlets.

Incredibly, for 30 straight months, store brands have led national brands in year-over-year sales growth. Shoppers today care more about price, quality, and convenience than sticking to familiar brand names.

Consumer Preferences Are Changing Rapidly

The First Insight study highlights how consumer loyalty is evolving:

• 77% of shoppers don’t care how others perceive their private label purchases.
• Only 48% still consider themselves loyal to national brands.
• Over half admit they choose based on price, savings, or curiosity.
• 71% would try a private label if their favorite national brand was unavailable.
• 45% permanently switch to private labels when they meet expectations.
• 66% actively recommend private label products to friends and family.

The Private Label Legal Battle

With store brands growing so rapidly, conflicts with national brands are inevitable. For example, Mondelez International is suing Aldi. The lawsuit claims Aldi copied its packaging for popular items like Oreos and Wheat Thins, leading to consumer confusion.

This legal fight could reshape the entire private label vs national brand dynamic. Retailers may need to tread carefully as store brands become harder to distinguish from their big-name competitors.

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