Trendspotting: National brands vs. private label in fresh departments
Trendspotting: National brands vs. private label in fresh departments
It is no breaking news that the biggest differentiator a supermarket has is its fresh departments — especially produce. However, the way customers shop these categories, specifically how it relates to national brand and private label purchases, may be changing.
New Acosta Group research suggests shoppers are navigating trust, value and quality differently across fresh grocery categories, reshaping traditional assumptions around national and private label purchasing behavior. The research explores how shoppers evaluate fresh products, examining where national brands and private label each create value for shoppers and retailers.
“Freshness gets products considered, but brand often gets products chosen,” said Kathy Risch, senior vice president, shopper insights and thought leadership for Acosta Group. “What we found is that shoppers evaluate fresh categories differently than center store. Freshness and quality are table stakes, but trusted brands still serve as an important confidence cue, particularly when shoppers are weighing trade-offs or purchasing products where quality feels harder to judge.”
The study found that fresh shoppers consistently prioritize freshness, quality and value first, while national brands can enhance trust, preference and perceived value across many fresh categories.
Freshness or quality ranked as the top stated driver of choice for fresh shoppers overall, followed closely by price and trusted brands. The study also found that nearly half of shoppers report typically purchasing a mix of national and private labels in fresh categories, reinforcing that consumers increasingly view the two as complementary rather than competing choices. However, when shoppers were forced to make trade-offs between products, the role of brand became more pronounced, particularly in categories where quality or consistency can feel harder to judge.
National brands generated a 17 percent higher “fair price” perception versus store brands across the fresh categories studied, reinforcing the role brands play in driving confidence and perceived value.
The study found that brand behavior varies significantly by generation, shopper segment and category.
Millennials and Gen Z shoppers showed the highest willingness to pay premium prices for national brands in fresh, while using brands differently than older consumers. Notably, Gen Z shoppers assigned national labels a 21 percent higher “fair price” perception than private labels, the highest premium gap of any generation studied.
The research also found that even shoppers identified as “Private Label Loyalists” demonstrated higher price perceptions of national brands for certain fresh occasions.
“These findings reinforce that retailers do not need to think about fresh as a national brand versus private label equation,” said Mark Rahiya, group president of omnichannel sales and services for Acosta Group. “The strongest fresh strategies leverage both. Store brands anchor value and everyday loyalty, while national brands expand category reach, strengthen trust and attract incremental higher-value shoppers.”
According to the study, fresh category growth opportunities are strongest in shopper segments where brand importance and economic value intersect, including Millennials, national brand seekers and digitally engaged shoppers.
