Store brands are usually cheaper than national brands, often by about 15% to 25% according to Consumer Reports. Private Label Manufacturers Association (PLMA) basket audits have found savings of one-third or more in selected comparisons. Those figures are averages, not guarantees: package size, formulation, promotions, loyalty pricing, location and timing can reverse the result on an individual item. The reliable way to decide is to compare like-for-like products by unit price, then check the final price after discounts.
What “store brand” and “national brand” mean
A store brand, also called a private label, is made for sale under a retailer’s own name or an exclusive label. A national brand is sold across many retailers under the manufacturer’s established name. Both products may be produced by large food manufacturers, and a store brand is not automatically a low-quality generic.
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Retailers commonly offer several private-label tiers: a value line, a standard line, and premium, organic or specialty lines. That range matters when comparing quality and price. The phrase “store brand” describes how a product is marketed and distributed, not one recipe, factory or quality level. PLMA lists examples across value and premium tiers, including Great Value, Kirkland Signature, 365 Everyday Value, Simple Truth and O Organics.
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How much cheaper are store brands?
There is no single discount that applies to every cereal, can of tomatoes or carton of eggs. The strongest broad consumer guidance puts the usual difference at 15% to 25% below a comparable national brand. PLMA’s selected basket audits have consistently reported savings of one-third or more. A selected basket can produce a larger gap than a shopper sees across an entire cart, so neither figure should be treated as a guaranteed discount on every product.
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| Measure | Reported figure | Scope and qualification |
|---|---|---|
| Typical store-brand price advantage | About 15%–25% less | Consumer Reports shopping guidance; applies as a general estimate, not a promise for each item |
| Selected-basket savings | One-third or more | PLMA audits of selected baskets; results depend on the products and retailers included |
| Estimated U.S. consumer savings | About $35 billion | PLMA estimate based on Circana data for 2025 regular grocery shopping |
| U.S. store-brand dollar sales | $282.8 billion | PLMA/Circana, 2025, across reported channels |
| Dollar-sales growth | 3.3% for store brands versus 1.2% for national brands | PLMA/Circana, 2025 |
| Store-brand share by dollars | 21.3% | PLMA/Circana period ending December 28, 2025 |
| Store-brand share by units | 23.5% | PLMA/Circana period ending December 28, 2025 |
The dollar and unit shares differ because private-label items often have lower prices. A product can represent more units than dollars when each unit costs less. These national figures also combine categories with very different pricing and quality patterns; they do not tell you which label will be cheapest at your local store today.
Why a store brand can cost less
Lower marketing and distribution costs
National brands generally fund broad advertising, sponsorships, packaging campaigns and distribution across many retailers. A private label is promoted primarily by the retailer, often in its own circular, app or shelf placement. Avoiding some national advertising and distribution expenses can reduce the wholesale cost that reaches the shelf.
Retailer control over the product line
A retailer can specify package size, ingredients, quality grade and production volume for its own label. It can coordinate purchasing across stores and use the product to fill a price tier or category gap. Those decisions can lower costs, although they can also produce a premium private-label item whose price is close to—or above—a national brand.
Different margin and promotion strategies
Retailers may use private labels to offer a dependable opening price or to earn a different margin than they earn on a national brand. National brands may receive temporary discounts to attract shoppers, while the store brand remains at a steady price. In another week, a national-brand promotion can make it cheaper. The shelf price is therefore a snapshot of a strategy, not a permanent ranking.
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Why the cheapest choice changes by product and store
Price differences are uneven across departments. Category mix, retailer strategy, local competition, package sizes, regional supply costs and promotional calendars all affect the comparison. A private label may be substantially cheaper for one item and only slightly cheaper—or more expensive—for another.
A 2023/2024 peer-reviewed study using U.S. beef-market data found that introducing a private label steered demand away from national brands and could increase store profits. The study’s abstract reports that private-label introductions and related assortment changes had small price effects on national brands but strongly cannibalized national-brand demand. This helps explain why retailers invest in their own labels; it does not establish that every private-label item is the lowest-priced option.
Geography matters as well. The same product can carry different prices in different cities, stores or online channels. Compare products at the same retailer and, when possible, on the same shopping date. A national average cannot substitute for the price tag in your basket.
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Use this process whenever two packages appear similar. It prevents a large-looking package or an eye-catching sale tag from creating a false bargain.
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- Match the quantity. Compare ounces, pounds, liters, fluid ounces or count—not just the package name. A larger package can have a lower unit price, while a “family size” package can occasionally cost more per ounce.
- Read the unit-price label. Look for dollars per ounce, pound, liter or item on the shelf tag. If the store uses different units, calculate the price by dividing the shelf price by the net quantity. Use the same unit for both products.
- Match the formulation. Check regular versus low-sodium, sweetened versus unsweetened, whole-grain versus refined, concentrated versus ready-to-use, and other recipe differences. A cheaper product is not a fair substitute if it solves a different need.
- Match grade and quality claims. For meat, eggs, produce and other graded products, compare the same grade or production claim. For packaged foods, check organic, gluten-free, non-GMO, kosher, halal or other certifications when they matter to your household.
- Compare the final transaction price. Apply loyalty pricing, digital coupons, paper coupons, multi-buy rules and other promotions before deciding. Confirm whether a discount requires a minimum quantity or a store membership.
- Check the date and location. Prices vary by store, region and time. A comparison made during a national-brand sale may not hold after the promotion ends.
- Test before changing the whole basket. For taste-sensitive products, buy one small package or the smallest practical quantity. If the household dislikes it, the apparent savings disappear through waste.
Is generic food as good as a national brand?
Quality is product-specific. Consumer Reports testing found many store-brand products equaled or beat national-brand counterparts, while also finding taste and formulation differences in some products. A lower price therefore does not prove inferior quality, and a familiar national name does not prove that a product will taste better to you.
When the difference may be hard to notice
For ingredients used in cooking rather than eaten alone, small differences may matter less. Canned vegetables, basic baking ingredients, frozen vegetables and many pantry staples are reasonable candidates for a one-package trial. Texture, salt level, sweetness and package yield still deserve a label check.
When taste or performance matters more
Coffee, chocolate, snack foods, breakfast cereals, ice cream, condiments and other products eaten for a distinctive flavor can vary noticeably. So can products where texture or performance is central to the result. Keep the national brand if the store version causes waste, requires extra ingredients or fails a recipe.
Dietary and safety requirements
Compare the complete ingredient list and allergen statement, not only the front label. Certification and manufacturing controls can differ between products that look equivalent. If a household member has a medically important allergy or dietary restriction, the product that clearly meets that requirement may be worth a higher price. Recheck labels when a formula or package changes.
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Grocery categories where store brands are a good starting point
No category guarantees a private-label win, but some are practical places to begin because the products are easy to compare by quantity and ingredients.
- Pantry staples: rice, pasta, beans, canned tomatoes, broth and similar basics can be compared by weight and formulation.
- Canned goods: match drained weight, sodium level, packed medium and other recipe-relevant details.
- Baking ingredients: compare net weight and whether the product is single-ingredient or includes additives.
- Frozen vegetables: compare package weight, vegetable mix and added sauces or seasonings.
- Paper products: compare sheet count, roll length, ply and sheet dimensions rather than the number of rolls alone.
- Household basics: compare concentration, capacity and the number of uses; a lower sticker price can be misleading when one formula is more diluted.
These are starting points, not universal rules. Promotions, local availability and your household’s preferred formulation can produce a different answer.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.When a national brand may be worth the extra cost
Paying more can be rational when the national brand provides a specific benefit that the store option does not.
- The recipe, texture or flavor is distinctive and the substitute is regularly rejected.
- You need a particular allergen-control statement, certification or ingredient formulation.
- The national brand is on sale, has a loyalty discount or has a coupon that removes most of the premium.
- The product performs better in a way that reduces waste, such as a cooking ingredient that consistently works in a difficult recipe.
- Local availability makes the store version unreliable, forcing an extra trip or an emergency purchase.
Evaluate the premium against the benefit you actually use. If the national product is only familiar, a small trial of the store version can show whether that familiarity is worth paying for.
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A practical decision rule for each item
Use a three-question test at the shelf:
- Is it genuinely comparable? Verify size, formulation, grade and certification.
- What is the unit price after discounts? Use the final eligible price, not the largest number printed on the package.
- Would a failed trial cost more than the savings? For a taste-sensitive or perishable item, start with one package. For a shelf-stable staple your household already accepts, switching more broadly may be reasonable.
If the store brand passes all three tests, it is the default value choice. If it fails the first or third, keep the national brand or test a different private-label tier. If a promotion reverses the second test, buy whichever product has the lower current unit price.
How loyalty programs and sales change the answer
Retail pricing often has several layers: a regular shelf price, a loyalty-card price, a digital offer, a paper coupon and a multi-item promotion. Read the conditions carefully. “Buy two” pricing may require purchasing two units; a digital offer may be limited to one redemption; and a sale price may apply only during a stated period.
Compare the net price for the quantity you will actually use. Buying extra units to obtain a lower per-unit price is not a saving if the food expires, the household dislikes it or the promotion leads to impulse purchases. For nonperishables and products you already buy, a promotion can make a national brand temporarily cheaper than its store-brand counterpart.
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What the growth of private labels means for shoppers
PLMA reported that U.S. store-brand dollar sales reached $282.8 billion in 2025, growing 3.3% compared with 1.2% growth for national brands. Store brands represented 21.3% of dollar sales and 23.5% of unit sales for the period ending December 28, 2025. PLMA President Peggy Davies called 2025 the most successful year ever for U.S. store brands by sales and share.
Those figures show that private labels are a major part of grocery retail, not a niche substitute. More shelf space and more product tiers can improve choice, but they can also make comparisons harder. A premium private label may sit beside a value label and a national brand, each with different ingredients and unit economics. Treat every package as a separate product rather than assuming that one label category always wins.
Common mistakes that erase the savings
- Comparing shelf prices instead of unit prices: different package sizes hide the real difference.
- Ignoring recipe differences: a low-sodium, organic or concentrated product may not be equivalent to the comparison item.
- Counting a temporary sale as a permanent gap: promotions change the ranking from week to week.
- Assuming every store brand has the same quality: value, standard and premium lines can use different formulations.
- Buying a large package before testing taste: an unwanted product creates waste, not savings.
- Forgetting household usage: the lowest price per ounce is not useful if the product requires more per serving or is used less efficiently.
- Overlooking availability: an out-of-stock store label can lead to a more expensive last-minute replacement.
A repeatable shopping checklist
- Write down the product’s net quantity and the unit used on the shelf label.
- Match ingredients, grade, certification and serving format.
- Record the regular and loyalty prices separately.
- Apply coupons and multi-buy conditions only if you will use them.
- Trial one package for products where taste or texture matters.
- Keep a short list of store-brand products your household already accepts.
- Recheck prices periodically instead of assuming the same label remains cheapest.
Bottom line for a grocery budget
Store brands are usually the lower-cost starting point, with Consumer Reports estimating a typical advantage of roughly 15% to 25% and PLMA reporting one-third-or-more savings in selected baskets. The winning habit is not choosing a label automatically; it is comparing equivalent products by unit price after all discounts. Use private labels freely for staples that meet your household’s quality and dietary requirements, test taste-sensitive items in small quantities, and switch back to a national brand whenever its formulation, performance or sale price provides better value.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
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