Why retailers are betting big on their own brands — and what it means for the rest of the industry
Private Label Is No Longer the Backup Option — It’s the Plan A
There was a time when private label meant plain packaging, low expectations, and a price war with the cheapest thing on the shelf.
Not anymore.
In 2025, store brands aren’t just catching up — they’re leading. From packaging and innovation to loyalty and margins, private label has become the strategic core of supermarket retail. The rise is no longer a quiet trend — it’s a full-blown power shift.
Retailers know it. Consumers love it. And national brands? They’re watching carefully.
The Numbers Don’t Lie — Consumers Are Fully On Board
Let’s talk data.
According to multiple global market studies:
More than half of consumers say they now buy more private label products than they did last year.
In the U.S., private label sales hit $271 billion in 2024, outpacing national brand growth by almost 2:1.
Across Europe, private label share is projected to climb to over 31% by 2029 in hypermarkets and supermarkets.
In the UK, it’s not uncommon for private label to dominate entire categories — from chilled ready meals to household cleaning.
What’s changed? Trust, quality and relevance.
Retailers have quietly improved their offer — and shoppers have noticed.
Retailers Are Thinking Like Brands Now
Private label has evolved from a margin play to a full-fledged brand-building strategy.
Supermarkets today are launching in-house products like real CPG players:
Woolworths extended its budget line and now actively promotes its own brands across social, digital and in-store.
Natural Grocers saw private label growth help lift earnings — sending all the right signals to investors.
Dollar General rolled out over 100 new Clover Valley SKUs this year, including clean-label and plant-based items.
This isn’t just about value — it’s about retailers owning the shelf, the brand, and the shopper relationship.
So What’s Driving the Private Label Boom?
It’s not just about saving pennies anymore. Here’s what’s really fuelling the fire:
1. Quality you can actually trust
Retailers now work with the same top-tier manufacturers as national brands — sometimes even better ones.
And they know that if quality slips, loyalty disappears.
2. Sustainability & health trends
Private label is often first to market with plant-based, free-from, or plastic-free options. Why? Because it’s faster, less political, and directly tied to buyer insight.
3. Loyalty and ownership
A strong own brand locks customers into a retailer’s ecosystem. Think Tesco Finest, Sainsbury’s Taste the Difference, or Carrefour Bio.
4. Profit margins (of course)
Let’s not forget: private label can double or even triple margin compared to national brands — without trading down in quality.
The Big Question: What Does This Mean for Brands and Suppliers?
If you’re a traditional brand, you’ve got a decision to make.
Either you compete harder — or you collaborate smarter.
Here’s what national brands should consider:
Differentiate or die: Your product has to be more than a label. You need innovation, brand equity, or exclusivity to justify the space.
Partner with retailers: More suppliers are now co-manufacturing private label lines to fill capacity and stay relevant.
Own your niche: Premium, ultra-specialised, or experiential brands still hold ground. Private label hasn’t fully cracked indulgence… yet.
The 2025 Private Label Opportunity
For suppliers, the private label gold rush isn’t something to fear — it’s something to get involved in.
Here’s how to win:
Pitch with insight: Show how your product helps a retailer’s category outperform.
Offer exclusivity: Supermarkets want SKUs they can’t get anywhere else.
Think retail-first: Your packaging, shelf appeal, and price structure should be built for supermarkets — not just distributors.
And remember: the fastest way to get seen?
Be where buyers are already looking.
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Conclusion: It’s Time to Stop Calling It “Private” Label
Private label is public, powerful, and permanent.
It’s no longer the cheap alternative — it’s the strategic centerpiece.
Retailers own the shelf, the shopper, and increasingly, the story.
The brands who succeed in 2025 won’t be the ones with the loudest ads — they’ll be the ones who understand where retail is going… and move faster than it.