Happi Mentions First Insight | Gen Z Favors Private Label, Premium and D2C Products
Gen Z continues to rank national brands No. 1 in purchase preference across every shelf-test category, beating store brands, premium and direct-to-consumer (DTC) alternatives alike. But more than half (59%) of consumers in this demographic are actively trading down in one category to fund a premium purchase in another, according to market research firm First Insight.
Little Known Brands Preferred Over Tried and True?
This data means national CPG brands “stand out” less to Gen Z or “Zoomer” consumers. These shoppers are also significantly less driven by the prestige and name recognition of national brands. When asked which brand stands out first, Gen Z respondents consistently trailed Boomers in naming established national brands compared to private label, DTC and premium alternatives.
For example, when shown photos of multi-purpose cleaners across these brand types, 68% of Boomers said the national brand stood out first versus just 44% of Gen Z.
Similarly, analysts say 79% of Boomers selected the leading national brand of facial cleanser compared to 52% of Gen Z, with similar gaps appearing with dog food and vitamins. Yet, when asked to rank brands by purchase preference, Gen Z still chose national brands No. 1 in every category — ahead of store brand, premium and DTC challengers alike.
Analysts say national brands lose engagement from “standout” to “learn more” interest, while store brand, premium and DTC challengers gain attention. CeraVe stands out to 52% of Gen Z, but only 33% want to learn more — a 19-point drop.
Blueland, a DTC brand of cleaning products, stands out to only 18% of Gen Z, however, 30% want to learn more—a 12-point gain, analysts said. These statistics don’t spell out rejection for national brands: Gen Z’s “least likely to choose” scores barely differ from the total population, never more than three points.
Analysts say the erosion is indifference at the top of the funnel, not hostility. This pattern reflects findings from First Insight’s 2025 private label research, in which 45% of consumers reported permanently switching from a national brand to a store brand when quality met expectations.
Read on Happi.
