Private-label sales have been beating national brands for the past four years and 2020 was no exception, though according to a Coresight report, pandemic-fueled shopping habits cut into the overall strength of private-label performance. Industry experts expect the private-label boom to continue as major grocers such as Kroger and Albertsons expand their offerings, contributing to "a long-term swell in the private-label category," the report said.

Albertsons is adding 13 private-label frozen dessert products to stores, such as Signature Select Cinnamon Churro and Signature Select Unicorn Cotton Candy ice creams and six new nondairy flavors under its Open Nature brand. "We're passionate about innovating based on shoppers' needs, desires and the latest consumer trends," said Chad Coester, senior vice president of own brands at Albertsons.

Some large food brands are taking a hit as more retailers invest in private-label products. Kroger has nearly doubled its private-label offerings since 2005, Albertsons rolled out more than 1,000 of its own items during the 2018 fiscal year and Walmart has committed to improving its house brands.

Retailers including Kroger, Albertsons, Publix and Costco are revamping their private-label brands, offering quality products and eye-catching packaging to shed the reputation generic brands had for just being the products with the lowest prices. Today, 71% of global consumers have noticed an improvement in private-label products and 59% are willing to buy more private-label items, according to Nielsen data. At Kroger, 20 million households purchased items from its Simple Truth brand line last year, and private-label items accounted for nearly 28% of items sold in the third quarter, the company said.

Food makers such as Kraft Foods and General Mills are teaming up with retailers in an effort to beat the private-label competition. In-store displays and themed events, such as "pizza night" or "taco night," are some strategies.