Private Label Packaging Grows Up as Store Brands Build Own Identities

Private brands captured 23.5% of U.S. unit share in 2025, an all-time high according to the Private Label Manufacturers Association, and retailers are responding by treating their store brands as standalone brands with distinct packaging identities.

The momentum has continued into 2026. Private brand unit sales grew 0.2% in the U.S. through September, while national brand unit sales declined 0.8% over the same period, according to PLMA data. Higher-income households are embracing private label, and a majority of Gen Z consumers believe private label products are just as good as branded items.

"Being price savvy has become more of a badge of honor," said Lisa Peteet, creative director and co-founder of branding and packaging agency Atlas Branding. Younger consumers have "embraced buying private label, but they still value design."

Over the last year, Aldi, Amazon Grocery and Walmart have all redesigned private label packaging. Eran Mizrahi, founder and CEO of Source86, which sources bulk ingredients and manufactures private label products, said retailers now treat private labels as individual brands rather than a singular department within the company.

"Packaging is where a retailer brand shows shoppers what it stands for," said Peggy Davies, president of PLMA. "On the shelf, it is the product's most immediate opportunity to make its case."

Trader Joe's set the template

Mizrahi credits one retailer with changing the perception of store brands. "Trader Joe's did a really good job at educating the market that you can build a whole brand around value," he said. Trader Joe's draws 82% of its unit sales from store brands, the highest share of any retailer, according to market research firm Numerator.

One of the biggest shifts in private label packaging design involves the logo, according to Peteet. Retailers "want their logos really big on their packaging now," while product imagery takes less real estate. "That is a complete flip right now in the industry," she said.

Michelle Leong, a partner at consultancy Simon-Kucher focused on consumer goods and retail, said private labels can stand out through bold colors, legible fonts and "punchy and clear" wording. Designs must also render well online, with consistency between on-shelf and on-screen packaging.

Retailers use store brand packaging to signal that they understand their customers. Trader Joe's uses playful copy and hand-drawn graphics, Davies said. Aldi and Walmart shoppers tend to be budget-focused, while Sprouts Farmers Market customers seek organic ingredients — reflected in packaging with "a clean aesthetic and the stylized green leaf in its logo." "It communicates, 'We know who you are,'" Davies said.

Private labels are also experimenting with limited-edition products and trendy flavors where they once offered a single flavor, Mizrahi said. That shift creates opportunities for packaging manufacturers to supply materials for short-run or specialty SKUs. Retailers are considering lightweighting, monomaterial designs, more recycled content and paper-based alternatives, Davies said — though Peteet noted brands likely won't pursue a sustainable redesign if it drives up the price point.

A wave of redesigns

Target expanded its up&up private label line in 2024 and revamped packaging with colorful designs and large fonts, easier opening, reduced plastic and paper substitutions where possible.

In 2025, Aldi announced a rebrand of its private label portfolio. Lines like Clancy's, Simply Nature and Specially Selected kept their names but gained updated packaging with "an Aldi Original" stamp, and the discounter launched its first namesake brand. "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 said.

Amazon introduced Amazon Grocery in 2025 to replace its Amazon Fresh and Happy Belly names. The company said the new line's packaging "features a modern, clean and distinctive design with bold, easy-to-read typography" and clear nutrition information while using less plastic than previous packaging.

Hannaford Supermarkets refreshed its private brand packaging in 2026. The grocer saw "strong interest" in its private label but heard customer feedback that the packaging needed to better reflect product quality and value, said Sarah Guzmán, Hannaford's vice president of marketing. The new packaging features clear product descriptions, high-res photography and a Hannaford wordmark, and is rolling out on pasta, flour, cold brew, pickles and condiments.

Walmart redesigned its Great Value brand this year for the first time in a decade, with a more modern aesthetic and consistent placement of nutritional information. Walmart owns the six private labels with the largest household penetration, according to Numerator.

What it means for brands and suppliers

For packaging companies exploring private label business, Davies said the key is to frame the work as brand building, not just filling a container. Firms serving national brands face the opposite mandate: packaging must convey that the product is worth a premium.

Copycat designs remain a legal risk. J.M. Smucker sued Trader Joe's last year, alleging its Crustless Peanut Butter & Strawberry Jam Sandwiches copied Uncrustables packaging with a similar blue color and an image of a round sandwich with crimped edges and a bite taken out. In August, a federal judge ruled the lawsuit can proceed. Mondelēz International previously sued Aldi, alleging the grocer copied packaging of Oreos, Chips Ahoy! and five other brands. Atlas uses Google reverse searches when a design begins to feel familiar and adjusts accordingly, Peteet said.

Packaging partners also need short lead times and flexible operations, Davies said. Retailers with heavy private label focus like Aldi and Costco can bring products to market quickly — and pull them just as fast if they don't sell, Mizrahi said. The speed is disrupting the "comfortable seat" national brands once held in their categories.

Mizrahi doesn't anticipate a slowdown in private label's boom. Even if inflation tempers, consumer buying habits have changed and retailers have invested in their fast-growing store brands. "I think it definitely makes the national brands more nervous," he said.