We’re all feeling it at checkout. The grocery bill keeps creeping up. Instacart estimates a family of four is now spending between $1,100 and more than $1,600 each month on food. Even the most conservative number represents about a 10% jump from last year.

In past downturns, people responded by simply buying less. Back in 2008, grocery spending dropped by nearly 8% and shoppers chose price over convenience or brand loyalty. But today’s behavior looks different.

Consumers aren’t just trimming their lists. They’re reevaluating what belongs in their carts. They’re choosing products that earn their dollars, brands that bring value, and foods that feel worth it. The pressure is real, but the mindset is more intentional. People want to feel good about what they buy and who they buy it from.

Private Labels Are Leading the Conversation

Store brands aren’t the fallback anymore; in fact; they’re the front-runners. In 2024, private label sales reached $271 billion- growing four times faster than national brands. That momentum isn’t slowing down. In 2025, store brands continue to grow. Over the first 10 months of the year, store brands increased 3.7% vs. 1.1% growth for national brands. In unit sales, store brands also outdistanced national brands, rising .3% compared to a decline of .7% for national brands.

Consumers aren’t choosing store or generic brands just to save money. More than half say store brands meet or beat the quality of national names. This is a real shift in perception. For younger shoppers, especially Gen Z and Millennials, private label is often the first option they try. Although price matters, it’s not the only metric; they want clean ingredients, transparent sourcing, and a brand story that feels real. If it checks those boxes, the label doesn’t need to be familiar, it just needs to be honest.

Challenger Brands Are Winning Because They Move Like Consumers Do

On platforms like Amazon, legacy scale isn’t enough. Today’s challenger brands are outperforming established players in most CPG categories. What they lack in history, they make up for in speed. They’re optimizing for search, adjusting content quickly, and meeting trends in real time.

And it’s working. Shoppers aren’t searching by brand name anymore, they’re searching by benefit. If your product doesn’t show up in that moment, you’re not part of the decision.

People Are Spending with Intention

Across demographics, consumers are making more deliberate choices. They’re buying private label for pantry staples and household basics. But when it comes to wellness, skincare, or anything with a functional benefit, they’re still willing to invest.

This is especially true with younger consumers. Nearly 90% of Millennials and Gen Z are avoiding specific ingredients in food and beauty products. The demand for clean, high-function, values-driven products isn’t fringe anymore. It’s the baseline.

Shoppers are also blending how and where they buy. In a single week, they might hit a mass retailer, a farmers market, an online store, a specialty shop, and a grocery store. They expect convenience and flexibility—but they also want connection. They’re not just buying products. They’re choosing what fits their life.

The Brands That Win Make It Personal

Price is part of the equation. So is visibility. But the tipping point is often the experience.

Experiential sampling creates that bridge. Whether it’s on-shelf or at-home, giving people a chance to try before they buy builds trust. And trust builds relationships and drives loyalty.

It’s even more powerful when that sampling is part of a broader brand moment. Creator demos, IRL activations, and digital campaigns that reflect what people are talking about. These aren’t stunts, they’re strategies. When they’re done right, they generate content, spark connection, and give consumers a reason to come back.

The Takeaway: Meaning Moves Faster Than Scale

Legacy brands still have recognition. But in a world where every purchase is a reflection of personal values, that isn’t enough on its own.

Today’s consumers are curating their carts the same way they curate their feeds. They’re looking for products that make sense, show up authentically, and feel like they were made with them in mind.

Winning in this environment doesn’t mean being the biggest, or the loudest. It means being the most intentional. And the most human.

Sources:

1. Agenic Systems for Commerce and Intelligence Node, The Hidden Economy Taking Share from Big Brands, 2025;
2. SPINS, The Next Generation of Consumers, The Growth Engine Is Already Here, 2025;
3. Sales Factory, More Than Generic: The Strategic Shift that is Making Store Brands Category Consumers, 2025;
4. Private Label Manufacturers Association, Store Brand Facts