How Store Brands Are Reshaping Food & Beverage, Pet Food, and Supplements

Walk the aisles of any major retailer today and you’ll spot a striking trend.

Private label brands are leading, innovating, and winning share from legacy brands.

In food and beverage, pet food, and supplements, private label has moved from generic to go-to, powered by shifting consumer values, retailer ambition, and retailers’ ease of access to suppliers. No where is this more readily seen than Food & Beverage, Pet Food, and Supplements.

Read further for actionable insights and find out:

· What’s driving this growth?

· Why are these categories particularly vulnerable?

· How can brands fight back?

Why Private Label Is Booming

Consumer Value and Trust

Today’s shoppers are more value-conscious than ever, but their expectations for quality and innovation remain high. Private label brands now offer products that rival or exceed national brands in taste, nutrition, and packaging, usually at 10–30% lower prices.  In food and beverage, private label is forecasted to grow by $204.6 billion globally between 2025 and 2029, with categories like organic energy drinks, cold-pressed juices, and plant-based milks.

Private label brands are making particular inroads when it comes to staples:

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Retailer Investment and Strategic Expansion

Retailers are doubling down on private label, investing in premiumization, exclusive flavors, and even sustainability initiatives. In pet food, private label now commands 34% of the market value in Europe, with U.S. retailers quickly catching up.

Retailers like Petco are forming strategic alliances to address new nutritional needs and get ahead of consumer trends. Petco’s collaboration with JustFoodForDogs to offer a line of frozen nutrition for dogs is a prime example.

In supplements, private label brands are launching targeted, customizable products that mirror consumer wellness trends, such as CVS Health’s line of vitamins and Target’s Up & Up supplements.

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Channel Diversification and E-Commerce Growth

Private label is no longer limited to discount chains. Warehouse clubs, mass retailers, drugstores, and online platforms are all expanding their own brands, making private label products more accessible and visible than ever. Costco’s Kirkland Signature and Trader Joe’s private label lines are now household staples, while Walmart’s Great Value and Target’s Good & Gather are synonymous with quality and affordability.

In supplements, Amazon’s Elements and Walgreens’ Finest Nutrition have become go-to choices for value and trust. According to Numerator Research, 43 percent of consumers buy private label products to save money, and nearly six out of ten believe private label products offer above-average value.

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Major Retailers and Their Private Label Brands

Why Food & Beverage, Pet Food, and Supplements Are Especially Susceptible

Speed to Market and Flexible Innovation

Online and offline retailers have faster access to detailed consumer data and sales trends than most manufacturers. Categories with high retail concentration and low barriers to entry are especially susceptible.

In the pet food category, PetSmart and Petco together account for 40 percent of market revenue each year, while Chewy dominates e-commerce with a 55 percent market share. If they have the innovative capabilities in place, these retailers can continuously stay a step ahead of the branded competition.

These susceptible categories allow for rapid product development and quick pivots based on consumer trends. Retailers can launch a new kombucha, grain-free dog food, or immunity-boosting supplement within months, leveraging contract manufacturers and agile supply chains.

Premiumization and Health Trends

If grocery-store products used to be unremarkable, undesirable, and inferior, they have become a draw over the past decade or so. And they genuinely taste much better than they used to.

Private label brands are no longer the “generic” brand on the bottom shelf of the supermarket. These brands have done their homework when it comes to the consumer and are delivering on health, sustainability, and premium experiences.

Trader Joe’s Cold Brew Coffee, Costco’s Kirkland Signature Organic Coconut Water, and Whole Foods’ 365 Everyday Value Sparkling Water are examples of private label products that have excelled by tapping into improved taste, wellness, and quality, stealing share from established brands. Take these two cold brews. The branded version is 7 cents less per ounce than the private label option.

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In supplements, Amazon Elements’ multivitamins and Walgreens’ Finest Nutrition line have gained traction among consumers seeking quality and transparency at a lower price.

Recurring Purchases and High Household Penetration

Food, pet food, and supplements are purchased frequently, making consumers more likely to try and stick with private label alternatives.  In the U.S., grocery private label penetration has reached nearly 100% of households, with club and mass channels seeing the highest share of private label sales.

Sometimes, it’s difficult to determine if it’s branded or private label or maybe both?

Private Label Brands Excelling at Stealing Share

• Trader Joe’s Cold Brew Coffee has built a cult following, offering premium taste at a lower price than national brands, and is a leader in ready-to-drink coffee.
• Kirkland Signature at Costco, from organic coconut water to protein bars, has proven that store brands can be both premium and affordable, often outperforming national brands in blind taste tests.
• Aldi’s Simply Nature focuses on clean ingredients and health-forward products, capturing health-conscious shoppers who previously bought from leading organic brands.
• Kroger’s Simple Truth is a top choice for organic and natural foods, now a >$3 billion brand, taking share from legacy organic players.
• Amazon Elements multivitamins and supplements are gaining market share by emphasizing transparency, quality, and affordability.
• Walgreens’ Finest Nutrition offers a wide range of targeted supplements, from probiotics to omega-3s, and is positioned as a credible alternative to national supplement brands.

Fighting Back: The Case for True Innovation

Invest in Breakthroughs, Not Just Line Extensions

The days of relying on incremental flavor launches, mash-ups, or package tweaks are over. To compete, brands in these (and similar) categories must invest in true innovation: new formats, proprietary ingredients, and holistic wellness solutions. For example, instead of launching another protein bar flavor, develop a functional food that addresses emerging health needs, such as gut health or cognitive support, in an entirely new way using unique, science-backed ingredients.

Get to Know Your Consumers’ Needs, Wants, and Desires

Take the time to truly understand your consumers and engage with them in a personalized manner. Discover where your target consumers seek information and identify what’s still missing from their lives. Investing a little to learn a lot will help you build a deeper connection with your consumers from the start. This knowledge will help formulate a marketing plan that is relevant to your consumer, creating stickiness and differentiation from the competition.

Double Down on Brand Storytelling and Purpose

Consumers want to know the “why” behind your brand. Build emotional connections through authentic storytelling, sustainability efforts, and community engagement. These are areas where private label often lags, offering an opportunity for national brands, and start-ups, to differentiate themselves.

Key Questions for Brand Leaders

• What unmet needs exist in your category, and how can you uniquely address them?
• How can you build a brand story that resonates?

Are you ready for your success? Could a private label brand steal your share?

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About Compass Marketing

At Compass Marketing, we help brands navigate the rapidly evolving retail landscape. Our team has deep expertise in identifying growth opportunities and guiding products from concept to launch, especially in food, beverage, pet care, and supplements. We work with leading brands and disruptive newcomers to develop strategies that win in a world where private label is no longer an after thought, but a formidable competitor.

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