Inflation Drives 69% of Mexicans to Choose Store Brands

Amid persistent inflation, 69% of Mexican consumers are turning to store brands, reflecting broader shifts in consumer behavior influenced by price sensitivity and evolving perceptions of quality. Recent insights from NielsenIQ (NIQ), LendingTree, and The Atlantic underscore the growing appeal of private label products globally and in Mexico.

According to NIQ's 2025 Global Outlook on Private Label & Branded Products, 69% of Mexican shoppers consider private labels viable alternatives to national brands, with 58% rating them equal or superior in quality. Additionally, 70% of Mexican consumers believe private labels offer strong value, and 64% would purchase more if a greater variety were available.

This trend mirrors global patterns: NIQ reports that 53% of global consumers are buying more private label products.

Private label popularity is not confined to Latin America. A LendingTree survey of over 2,000 US consumers revealed that 88% have adjusted grocery shopping habits due to inflation. The changes include 88% have changed grocery shopping habits due to inflation, with 44% opting for generic brands and 29% paying closer attention to prices. Retailers like Walmart, Aldi, and Costco, known for robust private label portfolios, have benefited significantly. In 2024, Walmart led US private label sales, followed by Target.

“The fact that so many people have changed their grocery spending habits is further proof of just how hard inflation has hit families throughout the country,” said Matt Schulz, LendingTree’s Chief Credit Analyst.

While private label sales grew 4.3% year-over-year globally, major brands also saw gains, with the top 10 brands increasing sales by 4.8%, according to NIQ. This indicates consumer interest remains divided between affordability and brand loyalty.

Lauren Fernandes, Vice President of Global Thought Leadership, NIQ, explained:
“Retailers must maximize category traffic by balancing a strategic mix of branded and private label products and consider co-promotion programs to drive growth. Manufacturers, meanwhile, must innovate and protect their brand value while expanding market share.”

For retailers, private labels offer higher profit margins, bypass intermediaries, and foster customer loyalty. Companies like H-E-B in Texas have built strong followings around their store brands, similar to Trader Joe’s and Aldi, which primarily stock private label goods.

However, price remains a critical factor. NIQ data shows commercial brands typically sell at a 26% premium over private labels, pushing more consumers to explore store brands amid economic pressure.

Inflation is also reshaping restaurant behavior. According to LendingTree, 85% of US consumers have changed dining habits, with 59% eating out less frequently and others reducing or eliminating tips for takeout and delivery orders. The National Restaurant Association warned that potential tariffs on food and beverage imports could drive menu prices higher, further straining consumer budgets.