Affluent Shoppers to Shift to Private Label and Arn't Trading Back

Affluent Shoppers to Shift to Private Label and Arn't Trading Back

ATLANTA, GA – (April 2026) – Inflation is changing how Americans shop and is spurring high-income consumers, a group not typically associated with the category, to shift toward private label products. Once seen as a budget option, private label is now a deliberate choice for quality and value, with more shoppers across all income levels adding it to their carts. New consumer insights from Simon Kucher’s US Global Shopper Study point to a behavioral change. Consumers earning $5,000 or more per month purchased 10% more private label products than those earning less than $5,000 from 2025 to 2026. 

“It’s no longer about trading down. It’s shopping smart,” said Michelle Leong, Partner at Simon-Kucher. “Private label is reshaping grocery by delivering comparable quality to national brands while expanding into more categories. As a result, higher-income consumers are no longer seeing a reason to pay a premium.” 

Private label used to be tied to lower-quality ingredients and more price-sensitive households. 

That’s changed. To attract a broader range of consumers, retailers have built new premium tiers that span good, better, and best within their own assortments. They are investing in quality, packaging, and product development that offer a choice to trade up and explore. While stretching budgets, 56% of respondents say they are buying higher-quality, premium products, and 32% report value is a leading driver. 

Discerning high-income consumers have grown confident with private label. With less cost pressure, they curate their carts with a diversified mix of goods across all tiers for different needs and situations. According to Simon-Kucher, 39% of respondents earning more than $5,000 per month say they intentionally buy higher-quality or premium private label products more often, compared to 31% of those earning less. 

Now that the Consumer Confidence Index is at its lowest levels since 2014, inflation will likely push shoppers to weigh cost against value. In the study, 83% say they plan to buy more private-label products if prices continue to rise. 

As private label gains credibility with higher-income shoppers, brands have to work harder to justify higher prices and stand out beyond brand recognition alone. Already, basic private label staples are a preferred purchase for 44% of consumers across all income levels. That creates a real risk: the longer a brand is out of the cart, the harder it is to get back in. 

To stay competitive, brand marketers need to be more direct about what sets them apart: 

• Communicate the product value clearly and highlight differences. 

• Focus on innovation that consumers can see and are meaningful. 

• Build a more authentic and emotional connection to consumer needs. 

More than ever consumers are turning to private label not only because of its value for money but its delivery of strong quality. These steps will help legacy brands regain market share and win consumers. 

Simon-Kucher is a global consultancy with more than 2,000 employees in 31 countries. Our sole focus is on unlocking better growth that drives measurable revenue and profit for our clients. We achieve this by optimizing every lever of their commercial strategy: product, price, innovation, marketing, and sales, based on deep insights into what customers want and value. With over 40 years of experience in monetization across all topics, we are regarded as the world’s leading pricing and growth specialists. simon-kucher.com