Are Store Brands Actually Cheaper? A Complete Price and Quality Breakdown

How Much Money Store Brands Actually Save

The price difference between store brands and name brands is real, but it varies dramatically by product. When industry experts compared store-brand and name-brand versions of 19 products in blind tests, the savings ranged from 5 percent on frozen lasagna all the way to 60 percent on ice cream. This wide range tells you something important: some categories offer massive savings while others deliver only modest discounts.

To put this in perspective, one independent shopper tested the same market basket of groceries four different ways. Buying store brands resulted in spending about $66 total. That same basket cost about $164 when buying name brands without any discounts or sales. The difference matters at checkout and compounds over months of grocery shopping.

Store brands are cheaper mainly because you are paying for marketing, advertising, and brand recognition when you buy name brands. National brands invest heavily in advertising campaigns and premium packaging, which adds significantly to the retail price. Store brands, by contrast, prioritize value over marketing hype. They also benefit from lower marketing and distribution costs since they are sold in only one retailer or small group of retailers.

Quality and Taste: Where Store Brands Match Name Brands

One of the biggest myths about store brands is that lower price means lower quality. In reality, many store brands are made by the same manufacturers as name brands. Big-name companies like Hormel, McCain, and Reynolds produce store-brand products for retailers. In many cases, the only noticeable difference is the packaging and label.

When trained sensory experts conducted blind taste tests comparing store brands and name brands directly, the results were revealing. Store brands and name brands tied in 10 out of 19 comparisons. Name brands won in 8 cases, and store brands actually won once. This means that in roughly half of all products tested, consumers could not taste a meaningful difference. The 74 percent of shoppers surveyed who reported being highly satisfied with store-brand quality at their supermarket appear to have sound reasons for that confidence.

The ingredients in store brands are often nearly identical to name brands. You may find the same core ingredients in both versions of canned vegetables, pasta, snacks, and dairy products. The key is to read labels carefully if you have specific dietary needs or preferences, but for most people shopping for everyday essentials like sugar, flour, or canned goods, store brands perform just as well.

Which Categories Offer the Biggest Savings

Some product categories offer far better deals on store brands than others. Ice cream showed savings as high as 60 percent, making store brands a particularly smart choice for frozen desserts. Cheese crackers, with store brands costing roughly half the name-brand price or less, also deliver substantial savings.

Beverages show mixed results. In taste tests, cranberry juice from store brands and name brands showed roughly equal quality, though with different flavor profiles. Greek yogurt presented another close match, with some tasters finding the store brand slightly sweeter but otherwise difficult to distinguish from premium name brands.

Broth and chicken stock revealed larger quality gaps. One store brand broth tasted simple and mild, while a name brand version came across as highly processed with hints of dehydrated spice and off-tastes that varied between samples. This suggests that store brands do not perform equally well in every category.

Where You Might Want to Stick with Name Brands

Some product categories justify paying the name-brand premium. Specialty items and products where you have strong taste preferences may warrant the extra cost. For example, wheat breads showed different flavor profiles between brands: one had mild grain and malt flavors while the store version had a sourdoughlike character. If you prefer one style over the other, the name brand might be worth buying.

Similarly, products designed for specific dietary goals or health needs might benefit from the extra research and development that name brands invest in. National brands have more resources dedicated to R&D, which can matter for items like specialty health products or items formulated for particular nutritional outcomes.

The best approach is to try both options for products you buy regularly. You may discover you prefer the store brand and save money in the process, or you may find that the name brand justifies the cost for certain items. When 72 percent of shoppers reported buying store brands in the past month, many are likely following a hybrid strategy, choosing store brands where quality is comparable and name brands only for items where they notice a real difference.

Premium Store Brands Offer More Options

Modern retailers now offer multiple tiers of store brands, giving you choices beyond just the cheapest option. Trader Joe’s and Costco, for example, have built entire reputations on store-brand quality. Target’s Good & Gather line, Walmart’s Great Value brand, and Kroger’s private label products come in regular and premium versions. Some retailers like Publix sell dozens of organic store-brand foods, and Costco offers Kirkland Signature bourbon, Greek yogurt, and specialty items.

These premium store brands cost more than the budget versions but typically cost less than comparable name brands. They offer a middle ground for shoppers willing to spend more than the minimum while still avoiding the highest price points of major national brands.

How to Shop Smart Between Store and Name Brands

Start by testing store brands on items you buy frequently and where taste is less critical. Everyday essentials like sugar, flour, pasta, canned vegetables, and paper products are low-risk places to try switching. If you dislike them, you have not wasted much money, and you have gained information about your preferences.

For items where taste matters more to you, such as certain snacks, beverages, or specialty foods, buy both options side by side and compare them at home. You might be surprised to find the store brand meets or exceeds your expectations. Keep a simple list of which categories work well for you with store brands and which ones do not. Over time, this experimentation leads to a shopping strategy tailored to your own tastes and budget.

When you find store brands that work for you, stick with them. Building loyalty to store brands means you benefit from consistent pricing without the premium marketing costs baked into name brands. Your wallet will thank you, and your taste buds will likely approve.