Walmart’s Private Brand Surge: What It Means for Suppliers

The Rise of Private Brands at Walmart

Private brands used to mean generic. Today, they mean growth.

Walmart has evolved its private label strategy into a powerful flywheel—offering affordability, relevance, and innovation at a scale few national brands can match. As of early 2024, nearly half of all unit sales at Walmart (48%) come from private label products, signaling a meaningful shift in shopper trust and preference.

And with the recent launch of Bettergoods, a bold new food brand built on trends like clean label, plant-based eating, and culinary exploration, Walmart is making it clear: store brands are no longer chasing—they’re leading.

Why Walmart Is Betting Big on Private Brands

Walmart’s push into elevated private label offerings like Bettergoods isn’t just about price—it’s about:

• Margin control – Private brands offer better cost-to-serve and fewer intermediaries
• Customer stickiness – Exclusive brands build loyalty and reinforce Walmart’s differentiation
• Omnichannel flexibility – Walmart-owned brands are optimized for in-store and online, with full control over packaging, PDPs, and promotion

Bettergoods, which launched with over 300 SKUs, is segmented into three consumer-centric pillars:

• Culinary Experiences (globally inspired frozen meals and snacks)
• Plant-Based (modern alternatives across dairy, meat, and beverages)
• Made Without (free-from and allergen-conscious offerings)

Most items are priced under $5, signaling both mass appeal and margin potential.

The Private Label Boom: A Broader Context

Walmart isn’t alone. Across the U.S., private label sales hit $271 billion in 2024, up nearly 4% year-over-year, according to Circana. And while branded products still account for over $1 trillion in sales, private labels are growing faster in both dollars and units.

Retailers like Target (Good & Gather, Favorite Day), Costco (Kirkland), and Aldi are investing in store brands, but Walmart’s scale, operational agility, and fulfillment footprint make its private label expansion more disruptive.

Walmart isn’t just adding more store-brand items—it’s reshaping its categories around them.

What It Means for Suppliers

This shift isn’t temporary—and it isn’t something suppliers can afford to ignore.

Rethink Your Role on the Shelf

With Walmart prioritizing private brands in resets, branded suppliers must clarify their value proposition. That might mean:

• Premium trade-up – Justify your price with differentiated ingredients, functionality, sustainability, or brand story
• Complement, don’t compete – Position SKUs that fill gaps in the private label lineup—like unique flavors, ethnic profiles, or on-the-go formats
• Earn the right to stay – Bring data that proves your SKUs drive incremental trips, loyalty, or basket lift

Treat Modular Reviews as Strategic Checkpoints

As private label gains shelf space, suppliers must come prepared:

• Benchmark against new private label entrants
• Highlight incrementality and avoid duplication
• Be ready to propose alternate placements: secondary locations, seasonal programs, or online exclusives

Win on the Digital Shelf

Private brands are getting smarter online. Suppliers should:

• Audit and optimize PDPs (images, bullets, SEO, reviews)
• Lean into Walmart Connect to hold or grow category visibility
• Emphasize assets private brands may lack: heritage, third-party certification, usage inspiration

Explore Strategic Alignment, Not Just Competition

Some suppliers may find opportunity not in fighting private label—but powering it. Consider:

• Co-manufacturing or formulation partnerships
• Category leadership roles that influence private brand planning
• Advisory relationships that help Walmart expand its innovation pipeline

A Strategic Framework for Supplier Response

Here’s a simple matrix to help suppliers calibrate their next moves:

Final Thoughts

Walmart’s private brand momentum is real—and accelerating. For suppliers, the message is clear:

Being national is no longer enough. Being essential is the new bar.

Whether that means sharpening your pricing strategy, overhauling your PDPs, or pitching a co-developed SKU with Bettergoods, the opportunity is there—for brands willing to adapt.

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Buster Arnwine

Buster has over 21 years of diverse and deep CPG experience. He has experience across every size and stage of brand at Unilever, Reckitt, and Fusion Retail Group.

Buster has a burning passion for driving sustainable & profitable revenue growth for CPG brands.

With expertise in eCommerce, channel management, retail sales, commercial strategy, 4P optimization, financial modeling, performance management, and operations, Buster will make sure that tactics fit into holistic strategy and vice versa.

Buster partners with CPG brands from all categories and channels to find and execute their best sustainable revenue growth paths.

Buster can partner to build P&Ls, find trade spend efficiencies, win line reviews for Mass/Club/Drug/Grocery, grow Amazon revenue, design performance management, brand management strategy, full omni strategy, building out sales/marketing/eComm teams, or special projects.

Buster has a full team of experts to draw upon to enrich the output.