Higher-income households are leading the shift to store brands and discount grocers, and most shoppers say private-label quality matches or beats name brands
Start with “low-risk” swaps (staples, basic dairy, frozen veggies), keep what passes the family taste test, and save name brands for a few “special” favorites
Do a monthly stock-up at discounters and quick fill-in trips at your regular store so you’re not paying full price where you don’t need to
A new consumer survey from Alvarez & Marsal shows that higher-income households (over $100,000/year) are actually leading the shift toward store brands and discount grocers.
Here’s what’s going on, and how you can use the same strategy to keep your grocery bill in check.
Store brands aren’t just for tight budgets anymore
Alvarez & Marsal’s fall 2025 Consumer Sentiment Survey found the following:
Surprisingly, more than 82% of shoppers making over $100K say they’re buying more private-label products than ever before.
Just over half of those high-income shoppers say they buy store brands “very often” in grocery stores. That’s more than lower-income shoppers, where 42% said the same.
Across all income levels, 68% of people say private-label groceries are as good as or better than national brands on quality.
In other words, store brands are no longer the “if we have to” option. They’re a deliberate tradeoff where you happily spend less per item and free up cash for other things.
Plus, as we’ve talked about before, many store brands are actually produced by the more expensive name-brand then simply re-labeled.
What this means for your grocery budget
The fact that shoppers who can afford the more expensive name-brands are opting for store-brands and discount grocery stores is pretty telling. It tells me that store brands are clearly getting better and are providing an excellent value.
Here’s how to borrow the same playbook without feeling like you’re sacrificing quality.
1. Start with “low-risk” swaps
Most shoppers get nervous about swapping everything to store brand all at once. You don’t have to, just start with a few.
Begin with categories where quality tends to be very comparable:
Staples: sugar, flour, salt, rice, canned beans, and canned tomatoes.
Dairy: milk, half/half, butter, sour cream, and shredded cheese.
Frozen basics: veggies, plain fruits, pizza, fries, tater tots.
I love the advice of trying one or two private-label items at a time and keep what passes the family taste test.
Think of it this way, if you hate it, you’re only out a few dollars. If you love it, you’ve just permanently lowered your costs for that grocery item.
2. Use national brands for “special” items, not everything
Get in the habit of thinking of your big national brands as a “special treat” or “specific need” purchase. Here are a few examples that jump to mind:
That favorite box of cereal the kids devour in 2 days.
A particular “fancy” pasta sauce that you would serve to guests.
That one gotta have it hot sauce or snack where nothing else compares to it.
If you reserve those more expensive brand names for things you really care about, you’ll feel better about swapping to store brand on all the “doesn’t matter” stuff.
3. Combine discounters with your main store
The survey also shows shoppers across all income levels think that discount grocery stores have the quality and assortment to match traditional grocers. Use that tidbit of information to your advantage:
Do a once-a-month stock-up trip to Aldi, Lidl, Grocery Outlet, Winco, or another discount chain for shelf-stable staples, snacks and cleaning supplies.
Use your regular grocery store for fresh produce, meat and any specialty items you can’t find elsewhere.
Don’t think of it as “breaking up” with your favorite store, just stop paying full price for items you could get cheaper without a quality hit.