Why Shoppers Are Choosing Private Labels Over Big Brands

In recent years, private label cannabis products have gained significant traction in dispensaries across the United States. Once overshadowed by flashy, well-marketed big-name brands, private label options are now becoming the go-to choice for an increasing number of consumers. The reasons behind this shift are multi-layered, ranging from affordability and trust to evolving consumer behavior and retail strategy.

Price and Value Take Center Stage

One of the strongest drivers steering consumers toward private label cannabis is price. Private label products are typically 20–30% less expensive than equivalent branded options, according to data from Headset, a cannabis analytics firm. For many consumers—particularly during inflationary times—lower prices without compromising quality create a strong incentive to try store-branded products.

Big brands often allocate significant resources toward marketing, celebrity partnerships, and premium packaging. While these investments help build recognition, they also raise product costs. Private label products bypass much of this overhead, allowing retailers to pass savings directly to the consumer. In competitive markets such as California and Nevada, this value-based appeal has become a deciding factor for shoppers who prioritize affordability.

Shifts in Consumer Trust

Trust plays an equally vital role. The cannabis industry has matured rapidly, and many consumers now value consistency and transparency above flashy branding. Retailers with strong reputations can extend that trust to their private label lines. For example, consumers who have positive experiences at a dispensary are more likely to assume that the dispensary’s private label products meet or exceed standards for quality and safety.

According to a BDSA consumer insights report, more than 50% of cannabis shoppers said they would try private label products if they were recommended by dispensary staff. Budtender influence—combined with established retail trust—has made private labels a natural extension of the customer–retailer relationship.

The Desire for Local and Authentic Options

Another factor fueling the rise of private label cannabis is consumer preference for local authenticity. As national brands expand, some shoppers feel disconnected from products that seem overly commercialized. Private label lines often partner with local cultivators and producers, creating products that align with regional tastes and community values.

In states like Oregon and Colorado, where craft cannabis carries strong cultural weight, private label offerings are often marketed as “locally sourced” alternatives to big-box style brands. This approach resonates with consumers who prefer supporting smaller, community-based operations, even when the label technically belongs to a larger retail chain.

Evolving Consumer Behavior

The cannabis shopper of 2025 is savvy, budget-conscious, and open to experimentation. Younger consumers, especially Millennials and Gen Z, are more willing to explore non-branded products if the price-to-quality ratio is compelling. NielsenIQ reports that in other retail sectors, these same groups have driven private label sales in grocery and health products, and the cannabis industry is seeing similar trends.

Convenience also plays a role. With the rise of express pickup, drive-thru dispensaries, and digital ordering, consumers are increasingly relying on quick product recommendations. Private label lines offer retailers the chance to bundle products into loyalty programs, discounts, and memberships, making them more visible during the purchase process.

Retailer Strategy and Market Competition

From the retailer’s perspective, private labels are more than a consumer trend—they’re a competitive strategy. By offering exclusive products, dispensaries differentiate themselves from rivals while improving margins. In an oversaturated market, private labels give retailers control over pricing, product development, and branding.

The trend mirrors broader retail industries, where supermarkets and pharmacies have successfully built private label portfolios to rival household-name brands. In cannabis, private labels also allow retailers to respond quickly to market trends—such as solventless concentrates or infused pre-rolls—without waiting for larger brands to adapt.

What This Means for the Future

The rise of private label cannabis is unlikely to slow down. Consumers are signaling that affordability, trust, and authenticity matter more than big-name recognition. As retail markets become increasingly competitive, private label strategies will continue to evolve, offering shoppers a balance of quality and value while challenging major brands to rethink their dominance.

For cannabis consumers, the shift means more choice, better pricing, and products that often feel closer to home. For retailers, it represents an opportunity to build deeper relationships and loyalty with their customers in a crowded industry.