Private label on the rise

DENVER — Consumers are prioritizing value over brand loyalty, according to new data from Ibotta, Inc., a digital promotions provider for consumer packaged goods (CPG) brands.

The observation comes from the network’s 2026 State of Spend report, which compiles data from online surveys.

“The findings in our State of Spend report confirm a critical shift: value isn’t just a trend, but the center of gravity for the American consumer,” said Chris Riedy, chief revenue officer at Ibotta, Inc. “Years of economic volatility have forged a new type of shopper, which represents a massive opportunity for CPGs to redefine how they show up.

“To win in this new normal, brands can’t just be ‘guests’ in the retail ecosystem; they must move beyond traditional playbooks and leverage intelligent offers to meet shoppers exactly where they are, whether that’s a planned trip or spontaneous deal-driven discovery.”

The first of the report’s findings showed that fewer consumers said they are negatively impacted by inflation, standing at 67%, down 3% from 2025. The report also found consumers increasingly were choosing value-focused retailers such as Dollar General or Walmart, and 62% of consumers said affordability was a higher priority than brand names.

Consumers are choosing retailers that offer lower prices.

| Photo: Ibotta, Inc.

The second finding showed consumers were straying away from planned grocery lists. By entering grocery stores with a “loose idea” of what to purchase, consumers were more likely to capitalize on in-store sales, the report said. Thirty-two percent of consumers approach grocery shopping loosely or without a plan, and 68% of consumers make a grocery list before shopping, down from 75% in 2023, according to the data.

The report suggested that the majority of products purchased by consumers are “repeat buys,” with 26% of products being an unfamiliar purchase. For food and beverage shoppers, the data showed 62% of shoppers needed at least a 25% discount to try a new brand. For beverages, 52% would switch to a new brand for an offer up to 25% off.

As value grows in popularity, 38% of consumers believe that name brands are of higher quality, the report found, down six percentage points from 2025. Private labels are surging — the data showed a 44% increase in shoppers choosing store brands over name brands than in 2025, and 88% plan to maintain or increase their private label-based shopping habits.

While value is a rising priority for consumers, shoppers are still willing to spend more on products that are aligned with their health goals, according to the report. Fifty-one percent of food shoppers and 46% of beverage shoppers showed interest in purchasing “better-for-you” products this year.