Own brand’s share of UK grocery sales has been rising for several years. Now standing at 52.2% of spend in Worldpanel by Numerator data for the 12 weeks to 25 January, the highest point recorded.

Tesco, through its premium own brand range Tesco Finest, has been at the forefront of this shift. Finest passed £2.5 bn in annual sales in the 2024/25 financial year and reached 16% year-on-year growth in Tesco’s interim results for 2025/26, marking the third consecutive year of double-digit growth.

With Finest firmly established as the market leader, the question arises: where does Tesco take the brand next?

Why premium own brand – and why Finest?

The double digit growth of Finest significantly outpaces the wider market at a time when much of overall growth is inflation-led. As a result, premium own brand has become an increasingly important route to margin growth and differentiation.

Its expansion has been shaped by two complementary forces. Ongoing pressure on household budgets has encouraged shoppers to reassess branded purchasing. At the same time, retailers have responded decisively, investing in quality, packaging and innovation to ensure premium own brand is not perceived as a compromise, but an upgrade.

At Tesco, this commitment is clear. Finest products now account for around half of all new products and product improvements brought to market annually. For suppliers looking to grow with Tesco, premium own brand is no longer optional, it must be embedded within innovation pipelines.

The role of innovation extends beyond expanding range choice. In a market where loyalty mechanics, price matching and EDLP propositions are increasingly aligned, premium own brand offers retailers a distinctive competitive lever.

When volume growth is often dependent on winning shoppers from rivals, differentiation matters.

Having reinforced its value credentials through Aldi Price Match and Everyday Low Prices, Tesco’s attention is increasingly focused on strengthening quality perception. Finest plays a central role — not only through greater in-store visibility, but through consistently delivering on its promise of delivering an elevated taste experience.

Importantly, once shoppers trade from brands into own brand and are satisfied with the outcome, perceptions shift. Trust in own brand grows, and the perceived gap between branded and private label narrows further.

Where could Tesco Finest go next?

With three consecutive years of double-digit growth and sales exceeding £2.5bn, the opportunity for Finest is not simply continued expansion, but evolution.

One direction already visible on shelves is further premiumisation. Across full-line retailers, ranges delivering out of home quality are emerging. Tesco is participating in this trend, with ranges such as Finest Steakhouse and Finest Chef’s Collection being designed to replicate dining-out experiences at home, tapping into a structural shift as the cost of eating out rises faster than the cost of eating in.

Competition with the away-from-home sector is likely to intensify. Tesco reported that its Finest party food range grew sales by 22% at Christmas. While in the run-up to Valentine’s Day, Google search data showed Tesco reaching the firms breakout status, with a 5,000% increase in searches as shoppers sought what Google terms “contained indulgence”.

Seasonal and event-led occasions therefore present significant headroom. Easter, major sporting events such as the World Cup with its evening kick-offs, and Christmas all provide opportunities for Finest to reinforce its role in premium entertaining and shared experiences.

To explore how Tesco is shaping the future of own-brand innovation, join the afternoon breakout sessions at the Tesco Business Update on 29 April in London, where Commercial Directors Dom Morrey and Jack Brabin will share priorities, strategy and opportunities for the year ahead.

These streams will dive deeper into plans for both own brand and branded suppliers, offering practical insight into where partnerships, product development and growth momentum are heading in 2026.

“Own brand is central to how we deliver value, quality and differentiation for our customers. As shopper expectations evolve, the role of premium own brand in driving both experience and performance will only become more important.”
~ Matthew Kay, Group Brand Director, Tesco

To hear directly from Tesco on how it views the next chapter for Finest, and what this means for suppliers, join the Tesco Business Update 2026 from IGD.