Save money on food - or groceries store vs name brand.
Store brand groceries and food is generally 15 to 30% cheaper than name brand products. Yet the quality is just the same, if not better in some cases. Find how buying store brand foods, you can significantly cutback on your monthly grocery bill.
According to the U.S. Bureau of Labor Statistics, in 2021, the average American family (using 2.5 people per family) allocated about $5,275 annually for food at home. The amount spent is also increasing by 4 to 6% per year. It is possible to reduce that amount though by shopping for store brand stuff, and per studies (including from Consumer Reports), that same household could save as much as $1,700 per year (30%) by using store brand groceries. Not to mention also using coupons or rebates at the same time, and locate coupons for free grocery items.
One method that has proven effective is switching from name brands to store brand groceries. Contrary to some beliefs, opting for store brand foods doesn't mean sacrificing quality or taste. The $5,300 spent by families for food, groceries or produce comprises various categories, including the following. Per the US Bureau of Labor Statistics, the amount spent per year, by category, is.
- Dairy products: $490
- Meat, poultry, fish, and eggs: $1115
- Fruits and vegetables: $1030
- Cereal, Grains, and Bakery Products: $675
- Miscellaneous: $1950
What are store brands?
Store brands, often termed as generic or private label products, are retailed under a brand that is owned by the retailer. Walmart’s Great Value, Kirkland Signature, Kroger Simple Truth and Target’s Market Pantry are examples of store brands that are generally 15-30% cheaper than their name brand counterparts, even when considering unit pricing. But almost all major retailers have their own brands. According to the Private Label Manufacturers Association, consumers save approximately $50 billion annually by choosing store brand groceries over name brands. Learn what is unit price.
Private label stuff is typically less advertised, resulting in lower costs to the end shopper - you. On the surface, they may seem less appealing compared to the flashy packaging of name brands, but they frequently match or even exceed the quality of their name brand counterparts.
A study by the National Bureau of Economic Research revealed that there's little difference in quality between name brand and store brand groceries, food, cleaning supplies or anything. In some instances, store brands have even outperformed name brands in taste tests.
Savings from buying store brand groceries
It is possible to save a significant amount of amount, and as noted, it may be as much as 30% of your annual grocery bill. Families will save money category-wise if a household were to switch to store brand groceries:
- Dairy Products: Dairy products can be a significant expense, but opting for store brands can help people cut back on the costs. Kroger's Simple Truth Organic milk or Target's Good & Gather Greek yogurt are prime examples that offer excellent quality at lower prices. By opting for store-brand dairy items such as milk, cheese, or yogurt, you could save an average of 15-30%. This translates into annual savings of $70 - $150.
- Meat, Poultry, Fish, and Store Brand Eggs: Store brand options in this category are likely to offer 10-20% savings. By making the switch, an average household can save around $90 - $220 per year.
- Fruits and Vegetables: Choosing store-brand frozen, fresh produce (when offered) or canned fruits and vegetables can save you 10-30%. This can amount to $100 - $300 in annual savings. Or look into saving money at a local Community Supported Agriculture (CSA) farm.
- Canned Private Label Goods: From tomatoes to beans, canned goods are pantry staples. When grocery shopping, select store brands like ALDI’s Simply Nature or Costco’s Kirkland Signature for quality that's on par with name brands at a much lower cost.
- Cereal, Grains, and Bakery Products: With colorful boxes and enticing characters, name brand cereals can be alluring, especially to kids. They also tend to have a big marketing budget that shoppers are “paying for”. However, store brand cereals are high quality yet cheaper; they offer similar nutrition and taste for a fraction of the cost. For example, Trader Joe's O’s is a fantastic alternative to Cheerios. Opting for store brand bread, rice, pasta, and other grains can save you between 20-40%. This can lead to a yearly saving of $140 - $270.
- Pasta and Store Brand Sauce: Whether you're making spaghetti or fettuccine, switching to a store brand like Walmart's Great Value for pasta and sauce can cut that part of your food budget in half. Their products often fare well in taste tests and offer savings of up to 50%.
- Miscellaneous: Store-brand spices, condiments, and other miscellaneous items can save you around 15-30%. Expect annual savings of $300 - $600.
- Snacks: Instead of reaching for the Doritos, try grabbing a bag of Kroger's Kroger Brand Tortilla Chips. You might be surprised at how similar they taste, while saving almost 30%.
There are other savings to be had using store brand, or private label products. From coffee to juice, store-brand beverages are generally 15-30% cheaper. With store brands, expect to save around 20-40% on snacks and sweets. This adds up to annual savings of $130 - $260.
While the exact savings will vary for each family on household, if you use the Bureau of Labor Statistics in which a household of 2.5 people spends just over $5,200 on annual groceries, using store brand food and other stuff can lead to a total savings of $1,200 to $1,700 per year. For an even more significant impact on your budget, consider coupling store brand purchases with coupons and shopping during sales.
The common misconception is that cheaper store name brands or private labels equals lower quality, taste, or health. However, numerous store brands maintain high-quality standards. Sometimes, these products are even manufactured in the same facilities as name brands such as from Proctor and Gamble, Kraft, or other companies.
 While the quality is often the same, as with any shopping done anywhere (for food or something else), it’s crucial to read labels, compare ingredients, and be open to experimentation to determine which store brand products meet your quality expectations.
Store brand drawbacks
While the savings are there to be had by consumers using these cheaper products there are some considerations and cons to keep in mind. Certain people may have brand loyalty or specific dietary preferences that store brands cannot fulfill, however if the issue is only “loyalty”, always be open to store brands for food to save money. Additionally, some store brands may not have the same variety as name brands.
If you're contemplating making the switch to private label food stuff, consider doing it gradually. Begin by substituting one or two items, and gradually expand as you gauge your satisfaction with the quality and taste.
Another trick to do and to ensure that you’re making the right choice, conduct a taste-test at home. Purchase a store brand and a name brand of the same product, and compare them blindly, including your family. This exercise can be fun and eye-opening, as you discover that in many cases, there is little to no difference in taste or quality.
Conclusion – Save money with store brands
Making the switch to store brand groceries is a great way to lower your monthly grocery bills without compromising quality. Study after study shows they are 15 to 30% cheaper, even when factoring in unit price. Other studies show brand name food has the same quality and taste. By being an informed and savvy shopper, you can make choices that are not only beneficial for your household food budget but also for your family's health.
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