(Bloomberg) -- Walmart Inc. is starting a new line of store-brand groceries, with an eye toward Gen Z shoppers who are prioritizing value.

The Bentonville, Arkansas-based company is calling the line bettergoods. It’s the retailer’s largest private-label grocery launch in two decades, with about 300 items across categories ranging from dairy to snacks, Walmart said in statement Tuesday.

The new products, including items like Oatmilk Non-Dairy Frozen Desserts and Hot Honey Seasoning, aim to capture emerging food trends and use specialized ingredients. About 70% of these items will sell for under $5, though they can cost as much as $15, the retailer said.

“Walmart’s private brands have seen strong growth over the last several years” in particular due to the pandemic and inflation, said Scott Morris, senior vice president of private brands, food and consumables at Walmart. 

Sales of store brands are growing across all demographics at Walmart, especially Gen-Z, he said, adding that younger consumers are brand-agonistic and driving interest in private-label products. 

Private-label products, which are typically cheaper than branded items, bring in higher margins and boost loyalty among shoppers. Retailers have expanded their offerings in recent years, adding more premium, cuisine-specific or lower-cost versions. 

US consumers have been buying more store brands in recent years, looking to save money amid the highest inflation in decades. Some retailers have used costs of their own store brands as leverage in pricing discussions with suppliers. Private-label dollar market share in food and beverage reached about 26% in 2023, the highest in US history, according to research firm Circana LLC.  

Walmart has said in recent months that demand for private-label products has also increased outside the US. Kroger Co. said earlier this year that it expects to add more than 800 new private-label products this year. 

--With assistance from Sam Hall.

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