The rise of private label is reshaping how consumer products companies approach inclusive marketing in the health and wellness market. Private labels are helping narrow the affordability gap in healthy eating, expanding access to healthier options for more consumers. However, meaningful access goes beyond price, requiring products that align with consumers’ everyday needs and preferences.  

For CP companies, this shift presents opportunities to strengthen consumer trust, redefine value beyond price, make healthier choices more practical, and develop inclusive strategies that better reflect the needs of diverse consumers. 

Below, we explore how these opportunities can drive more inclusive and sustainable growth. 

Overcoming the “Health Premium” and Building Consumer Trust 

Historically, the term “health premium” has meant that healthier foods – products marked as organic, gluten-free, plant-based, or high in protein – carry a higher price tag than other foods. Companies like Walmart and Target are overcoming that premium by expanding their private label alternatives to national brands, offering consumers access to healthier products at more affordable prices. Across the broader grocery market, national brands typically carry a 25% premium over private label products. 

Consumers are responding too, with 59% of U.S. shoppers saying they trust retailer-owned brands. There is a growing willingness among consumers to consider private labels not just as low-cost substitutes, but as credible choices to meet their needs, especially when those products are endorsed by retailers they already depend on. Costco’s Kirkland Signature is a strong example of this broader market trend, with retailers building shopper loyalty by delivering more budget-friendly options without requiring them to sacrifice quality or convenience. 

As private labels continue to expand, shoppers increasingly expect the combination of affordability, quality, and convenience rather than viewing these as separate benefits. Still, lower shelf prices and greater convenience for some customers don’t necessarily translate into meaningful access for all. 

Making Value Meaningful for Consumers 

For shoppers trying to make healthier choices while on a household budget, affordability is often the starting point. Yet, price is only one part of the value equation. A product’s true value depends on whether it can fit into a shopper’s everyday life: is it filling, easy to prepare, accessible, unlikely to go to waste and aligned with household preferences? 

USDA’s research on food expenditures and diet quality among lower-income households provides important context for understanding how financial and perceived time constraints influence food purchasing decisions and household waste. For example, a household may get more value from a $4.50 product everyone eats than a $5 alternative that goes to waste. 

Even when cost-effective private label options are available, shoppers may face additional barriers, including limited access to stores carrying those products or insufficient time to prepare meals. Healthy products with a longer shelf life and simple preparation requirements can make healthier choices more realistic for consumers managing tight budgets and limited time. 

Opportunity #1: For CP companies, this is an opportunity to redefine value by looking beyond price and better understanding how convenience, food waste, and household preferences can influence purchasing decisions.  

Turning Affordability into Practical Access 

Competitive pricing helps consumers consider healthier options, but those products also need to fit into everyday life. CP companies have an opportunity to make them easier to understand and prepare, while addressing barriers to purchase. 

Researchers from UNC Gillings Public Health modeled how taxes on less healthy products could fund subsidies for healthier foods. Their findings suggested that this approach could improve the nutritional quality of grocery purchases for lower-income households without increasing overall costs.  

Kroger’s December 2025 launch of its Verified Savings Program offers a retail example of targeted financial support. The initial produce discount was available through January 31, 2026, to eligible government assistance recipients, including SNAP and WIC participants. The launch also included reduced-cost grocery delivery memberships. 

Beyond financial incentives, improving health literacy can also help consumers make more informed choices about healthier products. CP companies can support this through practical product messaging, recipes, and meal-preparation tutorials that make healthy practices easier to understand and apply. For example, a recipe with a verified cost of under $15 and a preparation time of less than 20 minutes could help families see how a product fits their budget and routine. Partnerships with food influencers could also demonstrate quick, healthier meals. 

Opportunity #2: For CP companies, making healthier choices more practical means looking beyond the product itself to understand and address the barriers that consumers face when purchasing, preparing, and attempting to incorporate healthier foods into their everyday lives. 

Inclusive Customer Growth  

As private label products expand, CP companies have an opportunity to move beyond the traditional “average consumer” approach to better understand the needs and preferences of diverse consumer markets. Inclusive merchandising strategies can help companies use localized consumer insights to inform product assortments and merchandising decisions.  

Texas-based grocery retailer H-E-B is one example of how retailers can use private label to address different consumer needs through a more inclusive product portfolio. Its Central Market Organics line offers organic options, while its Mi Tienda line features Mexican-inspired foods. Its Select Ingredients program also gives shoppers a way to explore products based on ingredient preferences. These offerings illustrate how private label portfolios can reflect different dietary needs and cultural preferences without assuming a single profile for every household. 

Opportunity #3: For CP companies, inclusive growth means using consumer insights to develop product portfolios that reflect the diverse needs and preferences of the markets they serve. 

Looking Forward 

Private label products can help narrow the affordability gap for healthy foods, but future growth will depend on how well they meet household needs. Affordable products need to meet quality expectations, while convenience influences whether consumers can use them consistently. CP companies can translate those expectations into product decisions and marketing that reflect the consumers they serve.  

Multicultural customer growth hinges on making healthier options practical and accessible, building stronger consumer relationships, and creating new opportunities for inclusive growth. The next competitive advantage will be delivering value that consumers can realistically use in their everyday lives, which starts with understanding and catering to the shifting consumer journey.  

Learn more about our consumer products and culture transformation consulting services. 

Contributions from Spencer Simco