Private Label Is Becoming the Star of Holiday Entertaining, Not Just the Budget Option

At its 2026 Holiday and Winter Selling Show, United Natural Foods identified a clear trend heading into this holiday season: private label brands are increasingly seen as a source of unique, premium-feeling holiday entertaining solutions, not just a lower-cost substitute for everyday staples.

That's a meaningful shift for a category that's spent years earning trust primarily on price. Holiday entertaining is an emotional, occasion-driven purchase, and private label is now competing for it directly, not just for the weekly staples list.

A few things are true about this shift:

●      Private label's reputation has moved from "acceptable substitute" to "genuine option," even for occasion-driven purchases

●      Holiday entertaining purchases are more emotionally driven than routine grocery trips, raising the bar for what private label needs to deliver

●      Shoppers are actively seeking private label products specifically for their holiday gatherings, not just settling for them

●      National brands can no longer assume holiday occasions are automatically their territory

Current Grocery Shopper Trends

1. Shoppers Are Willing to Feature Private Label at the Holiday Table

Once considered a purely practical, budget-driven choice, private label products are increasingly showing up in shoppers' actual holiday entertaining plans, not just their everyday cart.

2. Occasion-Driven Purchases Demand More From a Product Than Routine Ones Do

A shopper hosting a holiday gathering is evaluating a product on more than price. Presentation, uniqueness, and how a dish will be perceived by guests all factor into the decision in a way routine shopping doesn't require.

3. Premium Perception Is Becoming Achievable for Private Label

Retailers are actively developing private label products designed to feel premium and distinctive, closing a gap that used to clearly separate store brands from name brands during special occasions.

Industry Trends Impacting the Grocery Market

1. Retailers Are Investing Directly in Holiday-Specific Private Label Development

This isn't incidental growth. Retailers are deliberately building out private label lines designed specifically for entertaining occasions, treating it as a real strategic priority rather than a byproduct of everyday private label expansion.

2. National Brands Face New Competition During Their Strongest Season

Holiday entertaining has traditionally been a strong season for name brands specifically because of the occasion's emotional weight. That advantage is less automatic than it used to be.

3. Video and AI-Generated Images Can Make a Private Label Product Feel Occasion-Worthy

A shopper deciding what to serve for a holiday gathering responds to more than a product description. Shoppable video showing a private label item styled and presented for an actual holiday occasion helps it compete directly on the emotional terms the moment demands, not just on price. For retailers rolling out new private label packaging quickly this season, AI-generated images can produce styled, occasion-ready product visuals at a pace that matches an expanding holiday line.

Challenges and Opportunities in Grocery

The challenge for national brands is real: an advantage they've long taken for granted during the holidays is facing direct, deliberate competition from private label for the first time at this scale.

The opportunity for retailers investing in private label is significant. Holiday entertaining purchases carry higher margins and stronger shopper attachment than routine staples, making this a meaningful strategic prize, not just an incremental win.

Strategic Recommendations for Grocery Brands and Retailers

The first priority for retailers is treating private label holiday development as a real strategic investment, with content and presentation that match the occasion's emotional weight.

The second, for national brands, is recognizing that holiday season territory is no longer guaranteed and requires an active, specific value case rather than assumed seasonal advantage.

The third, for both, is using video and styled imagery to make products feel occasion-worthy, since holiday entertaining purchases are evaluated on presentation and confidence, not price alone.

Looking Ahead

Private label's move into holiday entertaining reflects how far the category's credibility has come. Retailers that invest in making these products feel genuinely special, not just affordable, will capture a bigger share of the season's most emotionally significant purchases.

Want your holiday products to feel occasion-worthy, not just cost-effective? See how leading grocery brands are using video and AI-generated images to make private label feel like a real choice, not a compromise.

FAQ

Is private label grocery growth extending into holiday entertaining?

Yes. Industry research presented at UNFI's 2026 Holiday and Winter Selling Show found that shoppers increasingly view private label brands as sources of unique, premium-feeling holiday entertaining options, not just budget substitutes.

Why does private label growth in holiday entertaining matter more than everyday category growth?

Holiday entertaining purchases are more emotionally driven and carry higher margins than routine grocery trips, making this a strategically significant category for private label to gain ground in, beyond typical everyday value shopping.

How are grocery retailers responding to this shift?

Some retailers are directly investing in private label product lines developed specifically for holiday entertaining occasions, treating it as a deliberate strategic priority rather than incidental private label growth.

How can grocery brands make private label products feel appropriate for holiday occasions?

Video and styled AI-generated imagery that show a product presented for an actual holiday gathering can help a private label item compete on the emotional and presentation-driven terms the occasion demands, not just on price.

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