Private Label Penetration Rates High In Several Product Categories
Private label sales continue to grow and now enjoy nearly full household penetration in several important categories, according to a new report from Numerator.
The Private Label Perceptions report leverages verified purchase data and a March 2025 sentiment survey of more than 21,000 private label buyers across more than 130 brands in the CPG and general merchandise sectors.
For the 12-month period ended December 31, 2024, private label products had a household penetration rate of 98% or more in several categories: grocery, 99.9%; health & beauty, 99.2%; household, 98.9%; and home & garden, 98.0%. Categories with private label household penetration rates above 80% include tools & home improvement (86.3%), apparel (84.8%), and party & occasions (82.9%).
The strong penetration of private label products across these categories follows a five-year period of robust growth. Since 2020, private label sales have increased by 29%, compared to a 15.4% increase in national brand product sales during the same period.
Growth has been fueled by more shopping trips and increased spending. In 2024, private label trips rose 2.3%, spend per unit grew 1.9%, and the number of households purchasing private label products increased by 0.7%. The price gap between private label and national brands has widened by 38% since 2019. On average, consumers are paying more than $2 extra for a nationally branded product compared to its private label equivalent.
When asked what words come to mind when thinking about private label products, 65% of respondents said "budget-friendly," 33% said "reliable," 31% mentioned "generic or basic," 24% said "trustworthy," and 23% chose "family-friendly."
While more consumers are purchasing private label products, Numerator’s survey found some barriers to purchase remain. These include limited variety or availability (30%), habitual purchasing of the same-name brands (25%), concerns about quality or consistency (24%), and preference for specific national brands (21%). Consumers said that promotions and expanded assortments were the top two improvements private label brands could make.
Brand ownership recognition in private label is higher in CPG than in general merchandise. Household (78% of respondents), grocery (77%), and health & beauty (73%) showed the most awareness, while toys (43%), tools & home improvement (43%), and electronics (46%) had the least.
Store brands with the highest recognition as private labels include Member’s Mark/Sam’s Club (95%), Kirkland Signature/Costco (92%), Up & Up/Target (88%), and Cat & Jack/Target (87%). Those with the lowest recognition include Spring Valley/Walmart (25%), Vigoro/Home Depot (24%), Better Homes & Gardens/Walmart (18%), and Expert Gardener/Walmart (16%).
Two newer retail private brands — Target’s Dealworthy and Walmart’s bettergoods — were spotlighted in the report.
Launched in February 2024, Dealworthy is a value-driven private label offering everyday essentials. Focused on affordability and reliability, the brand includes practical products — from tech accessories to home basics — designed to meet everyday needs on a budget. Dealworthy has a 12% household penetration rate, with $9 in spend per household and a 34% repeat purchase rate.
Launched in April 2024 to much fanfare, Walmart’s bettergoods focuses on elevated ingredients. The brand offers a modern look and health-forward options and is designed to meet rising demand for stylish, quality groceries without the premium price tag. Bettergoods has achieved a 20.6% household penetration rate, with $16 in spend per household and a 46% repeat purchase rate.
Numerator’s Private Label Perceptions survey was conducted in March 2025, surveying more than 21,000 purchase-verified private label buyers across 130+ private label brands in both the CPG and general merchandise sectors. Purchase data was compiled using Numerator’s 150,000-household Total Commerce Panel.
