Younger U.S. Grocery Shoppers Are Buying Less Private Label: Why Driving Growth is About More than Just Prices

Private label products have long served as a way for grocers to win and retain customers on the basis of low prices, but new NPS Prism data suggests a different approach may be needed to drive Gen Z and younger Millennials to them.

While 72% of shoppers 35 or older purchased private label during their last trip to their primary grocer, only 65% of shoppers ages 18-34 did so. The percentage of younger customers who name private labeling offerings as a driving factor in their choice of grocer is also lower than older age groups.

While low awareness could be partially responsible, with fewer younger customers reporting they are aware of private label offerings, this shift can also be attributed to the different priorities of younger demographics. By understanding and appealing to these priorities, grocers can ensure private label penetration remains high across generations.

Well-stocked shelves are a critical loyalty lever for younger customers

While older generations base their choice of grocery stores more heavily on who has the best prices, younger customers prioritize being able to reliably find the products they need.

53% of customers 35 and up list “everyday low prices” as one of their top criteria for selecting where to shop, versus only 45% of customers 18-34. A greater selection driver for this age group is “always has what I need in stock”, with 50% of respondents placing this in their top criteria.

Younger shoppers that purchase their primary grocer’s private label frequently are not only finding the products to be a good value, but also, crucially, in-stock when they need them.

In looking at the correlation between perceptions of private label offering and customer purchase of private label during their last grocery trip, older generations purchase most in accordance with strong value and high quality, while younger generation’s private label purchasing aligns more closely with strong value and in-stock regularity.

Value-based propositions must be paired with strong in-stock reliability

With price playing a less dominant role in Gen Z and younger Millennial’s purchasing habits, private labels must also compete based on what matters even more to these groups—consistent availability.

Strengthening supply chains, improving stocking strategies, and raising awareness of private label offerings as not just cost-saving but reliably in-stock options, are steps that grocers can take to keep this category strong. By doing so, U.S. grocers can also strengthen overall customer loyalty across generations.

See how your in-stock reliability and private label purchasing compares to top U.S. grocers

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