In a retail landscape shaped by economic headwinds, generational turnover, and changing definitions of value, private label brands are emerging not only as budget-friendly alternatives but also as reflections of consumer values. And at the forefront of this shift is Generation Z.
Once considered skeptical of store brands, Gen Z is now positioned to become their most influential champion. According to Numerator’s latest generational analysis, Gen Z’s share of private label spending is projected to surpass that of Boomers by mid-2026, driven by tightening budgets and evolving expectations around quality, values and purpose.
Inflation triggered the shift. Gen Z is cementing it.
The COVID-19 pandemic helped normalize private label among many shoppers. But it was inflation that entrenched the behavior, particularly for younger consumers facing diminished purchasing power.
Numerator research found that both Gen Z and Millennials are now among the most price-pressured shoppers, with a growing share falling into the bottom third of purchasing power (income adjusted for cost of living and household size) compared to a year ago. In January 2020, 72% of Gen Z and 41% of Millennials were in the lowest third of purchasing power. By 2023, those figures had declined by 13 and 10 percentage points, respectively, but remained largely unchanged and has started to reverse through the start of 2025.
That stall has made private label a necessity and, increasingly, a preference. Gen Z is driving the largest gains in private label and is on pace to overtake Boomers, long considered the most loyal store-brand shoppers, within the next year and a half. It challenges historical assumptions and opens the door for brands and retailers to engage Gen Z in new, more meaningful ways—ways that reflect their values, their constraints, and their growing influence on the market.
What private label means to each generation.
Private label isn’t a one-size-fits-all category. Each generation’s preferences reflect their life stage and broader lifestyle patterns.
Gen X, for instance, is 25% more likely than the general population to own three or more vehicles. Their top store-brand choices include Kwik Trip and Wawa which are brands aligned with a commuter-centric lifestyle. Boomers, meanwhile, favor private labels at Lowe’s and Harbor Freight, mirroring their high rates of homeownership. More than 80% own their homes, and over half have lived in them for a decade or more.
For Gen Z and Millennials, brand engagement is more nuanced. Store labels like Ulta Beauty, Wild Fable, Cat & Jack, Costco’s Kirkland Signature, and Trader Joe’s rise to the top. These aren’t placeholders for national brands; they are purposeful choices that blend style, value, and identity.
Both generations are also leading the charge into premium private label. While all age groups have increased spending in this tier, Gen Z and Millennials saw the largest jump—up five percentage points year-over-year. For these shoppers, store brands are no longer generic. Some are plant-based, design-forward, or ethically positioned. Case in point? Walmart’s bettergoods has served the aspirational middle where a product can be both look aesthetically like a premium brand but still have a more accessible price point. In short, they reflect a desire to buy products that align with both budget constraints and personal values, echoing the post-2008 mindset that once defined Millennials.
Gen Z Is rewriting the private label playbook.
Although value remains the dominant private label narrative from a total market view based on prior Numerator research, Gen Z is reshaping it from within. Compared to older shoppers, their sentiments around store brands stand apart. Numerator’s data highlights four key dimensions where Gen Z is over 50% more likely than other generations to diverge:
- Discovery: Social media platforms like TikTok and Instagram—often guided by influencers—are becoming the primary on-ramps to new private label products.
- Drivers: Packaging design and transparent labeling are essential, not optional. These elements carry more weight for Gen Z than for any other age group.
- Perception: Store brands are seen as trendy, innovative, and increasingly premium as the old stigma is fading.
- Values: Sustainability and better-for-you claims play a central role in decision-making.
These trends are a signal to the market: winning younger consumers requires more than low prices. Meaning, aesthetics, and intention matter just as much.
Can national brands stay competitive?
Private label’s momentum poses a growing challenge to name brands. In the U.S., store brand development remains less than half the level seen in markets like the U.K., France, and Spain, according to Numerator’s global data. This gap signals clear opportunity for retailers to invest in their owned brands and in a cost-conscious retail climate, private label has become a key lever for margin growth. At the same time, the price gap between private and national brands has widened by 38% since 2019, making it easier for consumers to stick with store brands and even trade up within private label, all while spending less overall.
That said, national brands still have room to maneuver. One lever is social mobility. As household incomes shift, so too do brand loyalties. Consider Millennials who rose from the bottom to the top purchasing power tier: their penetration of Whole Foods’ private label increased by 8.5 percentage points. These shifts illustrate how consumer behavior evolves as economic circumstances change and brands should look to replicate these views if job rates and wages are in flux.
Another opportunity lies in perception. While 46% of Gen Z and 50% of Millennials say store brands offer better value than name brands, those numbers still trail Boomers, 60% of whom agree. This suggests that younger consumers see potential in private label but haven’t fully committed.
Category-level data supports this idea. In electronics and office supplies, younger shoppers express concerns about quality which must be communicated in marketing messaging. In grocery and health & beauty, packaging and brand identity are sticking points. These are emotional and visual signals that matter deeply to Gen Z and Millennials and should be accounted for in product design and positioning.
Two actions for brands and retailers.
To succeed in this evolving environment, Numerator recommends two strategic approaches:
- Track Private Label Momentum by Life Stage and Category
Use survey and panel data to monitor how generational behaviors shift around key life
events that influence purchasing power such as becoming a parent or buying a
home. These insights can help identify white space for launching new private
label offerings or co-creating products with retail partners. - Use Sentiment Data to Identify Gaps
Even with rising private label usage, satisfaction is not uniform. By mapping where
expectations specific to your categories around innovation, transparency, or
sustainability fall short through survey, brands can adjust packaging,
messaging, and retail experience to better resonate with younger shoppers.
Taken together, these steps help ensure brands move with the next generation of consumers—rather than trailing behind them.
If you’d like to understand how your brand is performing in an increasingly private-label-driven marketplace, or how to better reach Gen Z and Millennials, connect with your Numerator account partner or reach out to our team directly.
