The Private Label Threat

Competitive Intelligence | Brand Managers, Category Managers, Strategy

In the United States, private label products already represent over 25% of retail sales in food and general merchandise. But this phenomenon is not stopping at supermarket aisles. For several years now, private labels have been advancing into territory long considered impenetrable: consumer healthcare (CHC). And this progression is accelerating across digital channels—Amazon, CVS Pharmacy online, Walgreens, and other major e-pharmacy platforms.

For national health brands, this represents a strategic red flag. Consumer trust in established brands for health, wellness, and self-care is gradually eroding, driven by three converging dynamics: inflation pushing shoppers toward cheaper alternatives, the rising perceived quality of private labels, and marketplace algorithms that reward transactional performance over brand recognition.

This article analyzes the rise of private labels and store brands in online CHC in the United States, identifies the most vulnerable categories, and proposes concrete differentiation strategies for national brands looking to defend—and recapture—their digital shelf.

The Private Label Landscape in Consumer Health: Where Does the U.S. Stand?

The Structural Growth of Private Labels in CHC