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CHICAGO – Global sales of private label products have surged by 4.3% year-on-year, reflecting a shift in consumer attitudes and growing acceptance of store-branded goods, according to NielsenIQ’s newly released report, Finding Harmony on the Shelf: 2025 Global Outlook on Private Label & Branded Products.
While private label growth remains strong, the top 10 global brands have outpaced private labels with a 4.8% sales increase, signaling intensified competition and opportunities for collaboration between retailers and consumer packaged goods manufacturers.
The report highlights that more than half (53%) of global respondents are purchasing more private label products, demonstrating a diminishing stigma and greater consumer confidence in their quality. Simultaneously, top international brands are maintaining strong sales momentum, further driving competition on retail shelves worldwide.
“Consumers are continuously changing their shopping habits to adapt to today’s current market conditions. Our report underscores the critical need for collaboration between manufacturers and retailers to drive the next wave of CPG growth and effectively capture consumers’ shifting attention,” said Marta Cyhan-Bowles, NIQ’s Chief Communications Officer and Head of Global Marketing COE. “In finding creative ways to work together, both parties can capitalize on these trends to unlock new opportunities and enhance market presence.”
Evolving consumer perceptions drive growth
Changing consumer habits are shaping the market landscape, with an increasing willingness to explore private label products. The report identifies several key trends:
- Value perception shift: 68% of respondents view private labels as suitable alternatives to name brands, while 69% believe they offer good value.
- Expanding demand: 60% of global consumers say they would buy more private label products if a wider variety were available.
- Stabilizing growth: Private label sales share has risen by 1.4 percentage points globally, though growth has slowed in Europe from nearly 12% in 2023 to just under 4% in 2024.
- Premiumization trend: More than half (54%) of consumers indicate they are likely to treat themselves with premium-branded products, with Millennials (61%) and Gen Z (58%) leading the trend.
- Brand exploration: 58% of consumers report diversifying their brand purchases across multiple product categories, prioritizing necessity over brand loyalty.
While global private label sales continue to grow, regional differences are evident. Egyptian consumers demonstrate a stronger preference for private labels, whereas South Koreans remain more hesitant to embrace store-branded alternatives.
NIQ suggests strategies for both private labels and branded products to enhance market presence:
- For private labels: Proximity to well-known brands enhances credibility, while price anchoring—where branded products are sold at a 26% premium—can encourage consumers to try private label alternatives.
- For branded products: Store brand endorsements influence purchasing decisions, with top UK retailers driving over 70% of private label growth and over 86% of branded product sales in 2024.
“There’s never been a better time for organizations to rally together to find ways to grow the overall size of prize with consumers. Growth is attainable for many companies in this wildly diverse playing field. Retailers should maximize category traffic by balancing a strategic mix of both name-brand and private label products—and consider co-promotion programs to boost overall category growth. On the other hand, manufacturers need to safeguard and expand their market share by innovating with trade incentives, while working to preserve their brand’s overall value proposition,” said Lauren Fernandes, Vice President, Global Thought Leadership, NIQ.
About the report
Finding Harmony on the Shelf: 2025 Global Outlook on Private Label & Branded Products comprehensively analyzes global sales trends, consumer behavior shifts, and market opportunities. NIQ’s survey, conducted between December 2024 and January 2025, polled over 17,000 consumers in 25 countries across Asia Pacific, Europe, Latin America, the Middle East & Africa, and North America. The report offers strategic insights for retailers and manufacturers seeking to navigate the evolving consumer landscape.
Download the full report from NIQ’s website for a detailed market analysis.
