Affluent American shoppers shifting to private labels
Higher-income consumers are increasingly driving private label growth in the United States, according to a recent report from Simon-Kucher.
While prior uptake in private label began as a response to Covid-era economic pressure and hyperinflation, the pricing consultancy says today’s growth in private label purchasing represents a structural change in how people shop.
The consumers driving this growth in the US aren’t budget-constrained shoppers angling to save money, but more affluent shoppers choosing private labels for both quality and value.
According to Simon-Kucher’s Global Shopper Study 2026, 44% of higher-income shoppers (earning $5K or more per month) are buying more private label compared to 2025, versus 33% of shoppers earning less.
This reinforces the global pattern, write Simon-Kucher experts Michelle Leong, partner; Nicole Zhou, senior manager; and Heidi Liu, manager. Private labels have built trust through the delivery of quality, value, and choice – so consumers are choosing store brands intentionally instead of as a fallback.
Overall, 42% of US consumers now predominantly or nearly exclusively buy private label products – such as Kirkland (Costco), Trader Joe’s, or Archer Farms (Target). This figure is flat from last year, meaning these behaviors are sticking.
Price is still a major factor, but declining in importance. Forty-nine percent of shoppers say that price matters more to them than it did a year ago, down from 66% in 2025. Meanwhile, 31% say quality has become more important in their purchase decisions.
As such, consumers are choosing private label because quality compares favorably with branded products. Fifty-five percent of Americans think branded products are overpriced without offering a meaningful quality advantage.
Although previously associated with lower quality or price-sensitive households, private label growth is increasingly driven by premium offerings. Basic private label remains the entry point, with 36% buying more than they did a year ago, but premium private label is closing in at 27%.
Retailers in recent years have invested in quality, packaging, and product development to create new premium tiers. Higher-income earners are (unsurprisingly) more likely to buy premium private label, at 39% regularly making purchases compared to 31% of those earning less.
With private label moving beyond price-led growth, Simon-Kucher says retailers will have to reinforce value, sustain quality, and continue expanding upmarket to maintain momentum. That means preserving a strong price-to-quality ratio and making quality visible and credible to shoppers.
“The next phase of competition will not be defined by price alone, but by the ability to deliver and communicate real, differentiated value,” Leong, Zhou, and Liu conclude.
