The largest grocery chains across the nation are investing heavily in private-label brands and aiming to capture consumers seeking better-for-you and functional products.
Kroger, Hy-Vee and wholesale food distributor United Natural Foods, Inc., launched dozens of wellness-focused products in January that offer high-protein, clean-label and plant-based options.
With store brand dollar sales growing at nearly three times the rate of their name-brand competitors, the US private-label market is undergoing a period of rapid expansion.
The Private Label Manufacturers Association (PLMA) said that in 2025, private-label sales grew at 3.3% year over year, while national brands grew at a rate of 1.3%. Private-label sales were up by more than $9 billion year over year in 2025 to a record $282.8 billion, PLMA reported, citing Circana Unify+ data.
“Store brands are outperforming national brands across the US, growing faster, expanding share and delivering record-setting sales results,” said PLMA President Peggy Davies.
The rise of private label
The PLMA report did not detail how better-for-you product sales performed in 2025 compared to other food categories, but noted that the fastest growing categories were pet care at 5.4%, liquor (4.4%), beverage (2.3%), frozen (0.9%) and both refrigerated and general food (0.7%).
Over the last five years, store-brand dollar sales have grown by $64.8 billion (up 30%), and dollar share jumped from 19.1% to 21.3%, PLMA reported.
The rising popularity is the result of changing consumer priorities, where private-label brands are competing on “value, quality, health and sustainability, not just price,” according to Davies.
While roughly one in five products sold by US grocers is a store brand, the US private-label industry significantly lags behind European countries, where store brands capture 25% to 50% of all shopper dollars. Private-label sales make up 49.5% in the UK, 47.2% in Switzerland and 43.5% in the Netherlands, for example, according to Neil Saunders, managing director at GlobalData, during his keynote address at the PLMA Trade Show in November.
Kroger beefs up better-for-you
The nation’s largest pure-play grocer, Kroger, is the latest major retailer to expand its better-for-you private-label brand with the expansion of its Simple Truth portfolio to include 24 new protein-focused products.
The product launch grew the grocery retailer’s Simple Truth portfolio to more than 110 products, Kroger said.
“As customers focus on their wellness goals in the new year, they are looking for high-quality options that fit their lifestyles and budgets,” said Ann Reed, group vice president of Our Brands at Kroger. “With the expansion of our Simple Truth Protein line exclusively at Kroger, we are supporting customers as they work towards their goals with nutritious, affordable and great-tasting protein offerings that are simple and free from unwanted ingredients.”
Kroger highlighted a handful of its new products in a press announcement, including Simple Truth High Protein Cereal, Beef Sticks, Protein + Electrolyte Water Enhancers, Cottage Cheese and Energy Bars.
Those products offer between 9 grams and 21 grams of protein, and Kroger noted other wellness traits of each, such as low sugar and no artificial colors.
UNFI private-label wellness grows
UNFI also kicked off 2026 with the announcement that it will roll out 50 new products over the spring and summer of 2026 at its product shows in Long Beach, Calif., and Orlando, Fla.
While not all of those products are focused on wellness, UNFI said in a press release that the new lineup is “designed to align with emerging shopper preferences and behaviors.”
“Consumers are embracing a ‘back-to-basics’ approach to wellness, especially when it comes to nutrition and hydration,” according to UNFI. “They’re seeking simple products that help reduce sugar, increase protein intake and support healthy eating – paired with clear, honest packaging that makes it easy to understand what’s in a product and what’s not.”
That follows the trend of more households using GLP-1 medications, UNFI said.
“By 2030, households with GLP-1 users are projected to account for 35% of all food and beverage consumption, further accelerating demand for natural, more functional options,” according to UNFI.
Highlighting wellness preferences can help to boost sales, UNFI said, adding that plant-based beverages, such as its Woodstock Banana Water, is attracting consumers. Products featuring high-protein, high-fiber, healthy fats, zero sugar and fermented ingredients are also driving sales, UNFI said.
Hy-Vee doubles down on health
Midwestern grocery chain Hy-Vee is also betting big on the popularity of wellness-focused store-brand products with the release of Nothing But the Truth portfolio.
“Customers are increasingly looking for foods that are healthy with high-quality ingredients,” said Elisa Sloss, assistant vice president of Hy-Vee’s HealthMarket department and dietitian services.
The West Des Moines, Iowa-based grocer is rolling out the product line in phases, starting with premium organic Italian products, snacks and chips, condiments and breakfast and grain products.
“Developed start-to-finish by Hy-Vee’s team of registered dietitians, Nothing But The Truth features products made with high-quality ingredients that are primarily organic, plant-based, non-GMO, low sugar and high in protein. The line follows clean-label standards and intentionally excludes more than 150 ingredients, including high-fructose corn syrup, artificial additives and dyes,” Hy-Vee said.
