U.S. shoppers are increasingly choosing private-label products as high prices pressure household budgets, weakening demand for established food brands. McCormick, the world's largest spice and seasoning maker, reported a 2.5% year-on-year volume decline in its U.S. consumer business during the third quarter, despite raising prices by an average of 2.2% to support revenue. Its shares have fallen about 32% this year. Conagra Brands recorded a 2.1% volume decline last quarter, expects a mid-single-digit drop for the full year, halved its dividend in July and began reviewing the sale of non-core brands. A Food Industry Association survey released in July found that 53% of Gen Z and 50% of millennials planned to buy more private-label products over the following year, while 76% of all consumers rated their quality equal to national brands. Private-label products' share of the U.S. food market rose from 17% in 2013 to 19% in 2023 and is projected to reach 25% to 30% within the next decade. Walmart and Target are expanding their own-label ranges, and 97% of grocery retailers surveyed by McKinsey said they would increase private-label investment over the next two to three years. The shift leaves food companies balancing higher prices that risk losing shoppers against absorbing rising costs, including freight expenses. Analysts say the balance of power is shifting away from famous brands in the food market.