The era where store brands were merely the budget-friendly, often lower-quality cousins of national brands is definitively over. A seismic shift is underway in the retail landscape, with private labels not only matching but often surpassing their branded counterparts in consumer appeal and market share. This transformation is creating unprecedented opportunities for packaging partners, compelling both retailers and national brands to rethink their strategies, from product development to shelf presence.

Once perceived as a compromise, private labels are now the preferred choice for an increasingly discerning consumer base. Higher-income households are embracing these offerings, drawn by a combination of value and evolving brand identities. This trend is further underscored by the fact that unit sales of store brands are experiencing robust growth, while national brands are seeing a decline. Crucially, a significant majority of Gen Z consumers, a powerful emerging demographic, believe private label products are on par with, if not superior to, their branded equivalents. This isn’t just about saving money; it’s about intelligent purchasing decisions.

"Being price savvy has become more of a badge of honor," observes Lisa Peteet, Creative Director and Co-Founder of Atlas Branding, a renowned branding and packaging agency. "Younger consumers have embraced buying private label, but they still value design." This sentiment highlights a critical evolution: private labels are no longer solely competing on price; they are actively engaging consumers through sophisticated branding and compelling packaging.

The numbers paint a clear picture of this dramatic market recalcitude. According to the Private Label Manufacturers Association, private brand unit share in the U.S. reached an all-time high of 23.5% in 2025. This upward trajectory is further evidenced by a 0.2% growth in private brand unit sales in the U.S. through September 2026, contrasting with a 0.8% decline in national brand unit sales during the same period. These figures are not merely statistical anomalies; they represent a fundamental recalibration of consumer priorities and market dynamics.

The Rise of the Retailer as a Brand Architect

This confluence of factors is compelling retailers to invest heavily in cultivating distinct identities for their store brands. Giants like Aldi, Amazon Grocery, and Walmart have all undertaken significant packaging redesigns in the past year. They are moving away from treating private labels as a monolithic department and are instead elevating them to the status of individual, distinct brands.

"Retailers are treating private labels more like individual brands than a singular department within the company," explains Eran Mizrahi, Founder and CEO of Source86, a company specializing in sourcing bulk ingredients and manufacturing private label products. This strategic pivot signifies a recognition of the immense potential and equity that well-executed private label brands can command.

As the private label sector experiences this boom, it is simultaneously opening new avenues for packaging suppliers. The growing and evolving segment demands innovative solutions, pushing national brands and their suppliers to differentiate themselves through packaging that unequivocally communicates premium quality and justifies a higher price point.

"Packaging is where a retailer brand shows shoppers what it stands for," states Peggy Davies, President of the Private Label Manufacturers Association. "On the shelf, it is the product’s most immediate opportunity to make its case." This underscores the critical role of packaging as a primary communication tool, capable of forging an immediate connection with the consumer and conveying brand essence.

Private Label: Building Distinct Identities on the Shelf

The transformative impact of private labels on brand perception is often attributed to pioneers who demonstrated the power of value-driven branding. Mizrahi credits Trader Joe’s as a key influencer in this regard. "Trader Joe’s did a really good job at educating the market that you can build a whole brand around value," he remarks. The success of Trader Joe’s, where an astounding 82% of unit sales come from store brands, serves as a powerful testament to this strategy, according to data from market research firm Numerator.

One of the most striking recent developments in private label packaging is the shift in logo placement and prominence. As private labels mature and establish their identities, retailers are increasingly opting for larger, more visible logos on their packaging, with product imagery often taking a secondary role. "That is a complete flip right now in the industry," notes Peteet, highlighting a significant departure from traditional branding approaches.

To capture attention on crowded store shelves and resonate with online shoppers, private labels are leveraging bold color palettes, legible typography, and clear, concise messaging. Michelle Leong, a partner at consultancy Simon-Kucher with a focus on consumer goods and retail, emphasizes the need for designs that not only stand out visually but also render well in digital spaces, ensuring consistency across both on-shelf and on-screen packaging.

Retailers are adept at using their private label packaging to signal a deep understanding of their target customers’ priorities. Trader Joe’s, for instance, employs playful copy and hand-drawn graphics to connect with its unique customer base. Meanwhile, packaging for Aldi and Walmart often appeals to budget-conscious shoppers, while Sprouts Farmers Market utilizes a clean aesthetic and its signature green leaf logo to communicate its focus on organic ingredients. "It communicates, ‘We know who you are,’" Davies explains, illustrating the personalized connection retailers are forging through their packaging.

The dynamism of private label offerings is also expanding. Mizrahi notes that private labels are increasingly experimenting with limited-edition products and trendy flavors, a departure from their previous approach of offering a singular, core flavor. This innovation creates new opportunities for packaging manufacturers to supply materials for short-run or specialty stock-keeping units (SKUs), catering to the agile nature of modern retail.

Beyond aesthetics and variety, sustainability is also becoming a key consideration in private label packaging. Retailers are exploring lightweighting options, implementing monomaterial designs, incorporating more recycled content, and transitioning to paper-based alternatives. However, Davies cautions that the adoption of sustainable packaging solutions will likely be contingent on their impact on the final price point. "If a sustainable redesign drives up the price point, brands likely won’t do it," Peteet concedes.

A Timeline of Transformation: Recent Private Label Packaging Refreshes

The evolution of private label packaging is not an abstract concept; it is a tangible reality reflected in a series of strategic refreshes by major retailers:

• 2024: Target’s Up & Up Expansion: Target significantly expanded its "up&up" private label line, accompanied by a comprehensive packaging revamp. The new designs featured vibrant colors, large fonts, and an emphasis on user-friendliness, including easier-to-open packaging and a reduction in plastic use where feasible.
• 2025: Aldi’s Portfolio Rebrand: Aldi announced a significant rebrand of its extensive private label portfolio. While established lines like Clancy’s, Simply Nature, and Specially Selected retained their names, their packaging was updated with a prominent "Aldi Original" stamp. This year also saw the launch of Aldi’s first namesake brand, underscoring a commitment to building a unified brand identity. "Aldi’s approach is especially interesting because it puts the retailer’s name prominently on the package – a clear statement that the store itself is the brand," Davies observes.
• 2025: Amazon’s Streamlined Grocery Brand: Amazon consolidated its private label grocery offerings under the new "Amazon Grocery" brand, replacing Amazon Fresh and Happy Belly. The company highlighted that the new packaging features a "modern, clean and distinctive design with bold, easy-to-read typography" and clear nutritional information, while also utilizing less plastic than its previous iterations.
• 2026: Hannaford Supermarkets’ Quality Emphasis: Hannaford Supermarkets refreshed its private brand packaging, responding to customer feedback that the previous designs did not adequately reflect the quality and value of their products. The new packaging features clear product descriptions, high-resolution photography, and a prominent Hannaford wordmark, rolling out across categories such as pasta, flour, cold brew, pickles, and condiments. "We saw ‘strong interest’ in our private label but were also hearing customer feedback that the packaging needed to better reflect product quality and value," stated Sarah Guzmán, Hannaford’s Vice President of Marketing.
• 2026: Walmart’s Modernized Great Value: Walmart undertook its first redesign of the "Great Value" brand in a decade, aiming for a more modern aesthetic and consistent placement of nutritional information and product benefits. This move is particularly significant given that Walmart owns the six private labels with the largest household penetration in the U.S., according to Numerator.

Packaging Private Labels: Navigating Opportunity and Litigation

For packaging companies looking to capitalize on the private label boom, Davies advises framing their services as brand-building initiatives rather than simply providing containers. This consultative approach positions packaging partners as strategic allies in a retailer’s brand development journey.

Conversely, packaging firms working with national brands face the imperative to enhance their offerings to convey superior value and justify premium pricing. This necessitates a focus on packaging that communicates innovation, quality, and a distinct brand story.

While private labels are increasingly forging their own identities, the issue of design mimicry remains a concern. Packaging partners must exercise caution to avoid inadvertently replicating national brand designs, thereby risking legal entanglements. The industry has witnessed several high-profile lawsuits in this area. Last year, J.M. Smucker sued Trader Joe’s, alleging that the retailer’s packaging for its sandwich product copied the distinctive blue color and imagery of Smucker’s Uncrustables. A federal judge ultimately ruled that the lawsuit could proceed, highlighting the legal ramifications of perceived design appropriation. Similarly, Mondelēz International has previously sued Aldi, accusing the discount grocer of copying the packaging of iconic brands like Oreos and Chips Ahoy!.

To mitigate these risks, agencies like Atlas Branding employ proactive measures. "When Atlas works on redesigns, it uses Google reverse searches if a packaging design begins to feel familiar and adjusts accordingly," Peteet explains, demonstrating a commitment to originality and legal compliance.

Furthermore, packaging partners must possess the agility to meet the rapid pace of private label development. Retailers with a strong focus on private labels, such as Aldi and Costco, are known for their ability to bring products to market swiftly and to discontinue underperforming items just as quickly. This speed is driven by increasing in-house capacity at the retail level, creating a competitive pressure on national brands to maintain their market share and avoid becoming complacent.

Mizrahi anticipates no slowdown in the private label surge, even if inflationary pressures subside. Consumer buying habits have fundamentally shifted, and retailers have made substantial investments in their rapidly growing store brands. "I think it definitely makes the national brands more nervous," Mizrahi concludes, underscoring the ongoing disruption and heightened competition in the retail sector. The private label revolution is not just changing what consumers buy; it’s reshaping the entire ecosystem of product development, branding, and packaging.