What’s contributing to the rise of private label?

The dominance of brands is under serious threat: at a global level, private label has almost half of grocery volume share (45.7%) and is growing in volume at double the rate of brands (1.4% vs 0.7%) according to NIQ.

In 2025, Europe will continue to lead the global private label market, with North America following as the fastest-growing region. However, private label's market share has declined in some European countries this year as brands have increased promotional activities to regain market share.

Private labels were once seen by shoppers as a budget-friendly option - a compromise in quality for a lower price. Now they have evolved beyond an emblem of value into an increasingly attractive, brand-equivalent choice, and a strategic cornerstone for retailers and suppliers.

McBride, a leading supplier of private label household products, highlighted in its latest annual report that private label now accounts for 35.5% of the household market. It also noted that private label growth rate is outperforming brands in key categories such as household, laundry, and cleaners. This category-level momentum reflects a broader shift in how private label is being positioned and perceived.

What’s driving this shift? A key change is retailers treating private label products as an extension of their brand identity and a lever for gaining competitive edge through differentiation and distinct brand experiences. There are several private label product trends which exemplify this strategic approach.

Staying on-trend

Private label suppliers and retailers are quickly adapting to emerging consumer trends, using their agility to outpace and out-diversify established brands. Examples include seasonal products, products inspired by other cultures, limited editions, and dupes (copies of popular branded products).

Cross-collaboration

Retailers are creating distinctive and meaningful private label experiences for shoppers by partnering with established and trending brands, ranging from celebrity chefs and famous designers to major food brands and well-known charities.

Responsible shopping

As we are also seeing in brands, increasing consumer demand is driving retailers to create or update products with enhanced environmental and health credentials.

Beyond food

Retailers are also expanding their private label offerings into non-food categories, tailoring products to specific consumer needs. These include items which address different life stages, premium products at more accessible price points, back to school items, and healthier pet treats.

There are, of course, various factors feeding the growing importance of private label. A main one being economic challenges changing shopper behaviour.

But one of the major threads in the success story of private labels is retailers demonstrating the flexibility and insight to seize the initiative, react to emerging trends, and adapt to the changing needs and preferences of shoppers. Retailers have redefined private label.