Private Label Chips Are Gaining Shelf Space in the Global Snacks Market

Private Label Chips Are Gaining Shelf Space in the Global Snacks Market

Go to any supermarket and check out the snack section. What was once monopolized by international brands now has a new entrant: private label chips. From budget stores to high-end organic markets, stores are now focussing on and expanding their in-store snack brands at a pace never seen before.

And it's not just about price anymore. The focus is mainly on improving the overall quality, flavour options, and packaging. Whole Foods' private-label chips, for example, demonstrate this transition by featuring artisanal-style packaging and flavors such as Himalayan Salt and Black truffle. These premium, clean-label chips compete with major brands in terms of quality and innovation while providing better value, making them appealing to consumers looking for both distinctive flavors and inexpensive, upscale snack options.

Retailers Are Using Snacks to Build Brand Identity

Private label chips have transformed from generic products into strategic tools for retailers to differentiate themselves in competitive markets. Value-driven chains emphasize cost-effective family packs to appeal to price-sensitive shoppers, while premium retailers focus on clean-label, artisanal-style chips that align with health and quality trends. Meanwhile, regional grocers leverage private labels to offer hyper-localized flavors like peri-peri, tandoori, wasabi, or truffle, catering to evolving consumer palates. This shift allows retailers to enhance margins, build brand loyalty, and respond quickly to market trends, making private label chips a key growth driver in the snack category.

In both developed and emerging markets, these items provide higher margins for the retailer and a new choice for consumers who want variety and do not want to pay a brand premium. One example of this is the company, Trader Joe’s from the United States, offers their own private-label chips in original flavours like Peruvian Potato Chips, Ghost Pepper Potato Chips, and Everything But The Bagel Kettle Chips. Such offerings help the company in reinforcing its artisanal, quirky and premium brand image while offering consumers distinctive flavors at a lower price than big-name brands.

Contract Manufacturing Makes Scaling Easier

Most of these chips come from the same facility that makes for the bigger and popular brands. Branding, packaging, and custom flavor profile are the only differences between these brands.

As more contract snack manufacturers build automation capabilities, even mid-sized retailers are able to enter the space with low minimum order quantities (MOQs). This lowers the barrier to launching SKUs, testing niche flavors, or rolling out seasonal promotions. Aldi's private-label chips, for example, are manufactured by the same firm as top brands but come in distinctive tastes such as Thai Sweet Chili and Maple Bacon. With automated production and low MOQs, Aldi routinely releases seasonal or limited-edition variants, allowing it to compete effectively and affordably with national brands.

Flavors and Ingredients Are Getting More Targeted

From Himalayan salt and avocado oil to baked lentil chips and low-oil wafers, private labels are tapping into wellness trends. In some markets, gluten-free, air-fried, and low-sodium variants have started to outperform older formulations.

Retailers also rely on real-time sales data and customer feedback to rotate or retire underperforming flavors, a level of agility that legacy brands often can’t match. Retailers utilize real-time sales data as well as direct customer input to swiftly determine which private-label chip flavors are popular and which are not.  They can then quickly offer new flavors or remove low-selling ones, modifying assortments right away.  Legacy brands, which have longer manufacturing cycles and more rigid supply networks, may lack flexibility and take much longer to adjust to market shifts or consumer preferences.  This agility gives merchants a competitive advantage by allowing them to keep their product range fresh, relevant, and in line with client demand.

To understand broader category shifts, see our Potato Chips Market Size and Share Outlook 2025-2034

Private Labels Are Redefining Loyalty in the Snack Category

Price is still part of the equation, but today’s private label chips are built around value for money, not just low cost. As consumer trust in store brands grows, many are making these chips their first choice, not just a fallback.

For manufacturers, this opens the door to long-term B2B relationships with high-volume buyers. For retailers, it’s a chance to differentiate in a saturated aisle and lock in repeat business.