The short
- Share step-up: Store brands sit near record share across regions; once switched, many households don’t revert.
- Gap driver: A 10–30% sticker discount vs national labels is now paired with better packaging and consistent quality.
- Next beachheads: Beauty and pet care are seeing new “premium private” lines with higher gross profit per unit.
- Watchlist: Fresh, baby, and OTC health — the last stubborn strongholds for big brands.
Why store brands are winning (three simple forces)
- Price you can see: Transparent gaps on shelf talkers convert trial; loyalty points close the loop.
- Parity that sticks: Better design, fewer additives, and clearer claims reduce perceived risk.
- Retailer control: Chains tune pack sizes, flavors, and launches faster than national suppliers.
Category × shelf share × price gap
| Category | Store-brand shelf share | Typical price gap vs brand | Notes |
|---|---|---|---|
| Dry grocery (pasta, rice) | 45–60% | −15% to −30% | Low recipe risk; high repeat |
| Dairy (milk, cheese) | 35–55% | −10% to −20% | Freshness & sourcing cues matter |
| Snacks & bakery | 25–40% | −12% to −25% | Flavor parity wins; kids drive repeat |
| Home & paper | 30–50% | −15% to −25% | Quality cues: ply count, scent, softness |
| Beauty & personal care | 10–20% | −10% to −20% | Emerging “premium private” lines |
| Pet care (dry/wet) | 10–25% | −10% to −25% | Vet-style claims, grain-free SKUs rising |
Ranges reflect current shelf realities across large chains; exact numbers vary by region and banner.
Country snapshot
U.K.
Discounters forced price transparency. Big four grocers doubled down with tiered store lines (value/core/premium), shrinking brand reliance in staples.
U.S.
Club and supercenter formats popularized “compare & save” endcaps. Fresh and baby still skew to brands, but paper goods and pantry have shifted.
Germany
High store-brand trust after years of consistent quality. Bio/organic private ranges keep margins while staying under brand price points.
India
Large chains push staples (dal, atta, oil) under store labels; beauty/pet is early but rising in urban catchments.
Retailer playbook (how chains press the edge)
- Tiering: “Value” to capture trade-down, “Select/Premium” to steal brand loyalists.
- Design: Clean labels plus bolder packaging catch the eye without heavy ad spend.
- Assortment: Faster flavor/size refreshes, holiday editions, and bundle pricing.
Risks & tells
- Quality slip: If reviews dip below brand benchmarks, repeat suffers — watch star ratings near endcaps.
- Supply bump: Import-heavy inputs (oils, cocoa) can hit availability; chains with dual sourcing fare better.
- Regulatory labels: For beauty/pet, claim precision matters; retailers now run central QA hubs.
What to watch
- New premium store lines in beauty and pet care at top banners.
- Endcap share — how often store lines occupy the prime slot.
- Delivery baskets: store-brand penetration in online orders vs in-store.