A recent global report by consumer intelligence firm NielsenIQ (NIQ) has urged retailers and manufacturers to move beyond the competitive tug of war between name brands and private-label products and instead embrace collaboration.
According to the Finding Harmony on the Shelf: 2025 Global Outlook on Private Label & Branded Products report, private labels are no longer the underdog, with consumers placing greater importance on value and functionality over brand names.
The report revealed a shift in consumer attitudes, with 68% of global consumers saying private labels are good alternatives to name brands and 69% believing they offer better value for money.
The report said more than half of those surveyed around the world reported buying more private-label products than before, driven primarily by affordability and availability.
NIQ’s findings indicate that functionality and price now outweigh emotional or cultural connections to brands. While name brands still hold an advantage in areas such as notoriety and trust, private labels have narrowed the quality gap and have become credible and desirable across a wide range of categories.
“The debate is if consumers around the world are sold on private labels,” the report said.
“A total of 53% of global respondents say they are likely buying more private-label products than ever before and this strong measure of sentiment is a figure backed up by impressive worldwide sales data.
“In fact, NIQ Retail Measurement Services confirms that private- label sales are up 4.3% in annual global sales growth year on year. And, according to research by Technavio, they have speculated continued growth of global private-label food and beverages — to the tune of 6.64% compound annual growth rate through 2028.”
However, NIQ warns that continued gains will not come from further intensifying competition between brands. Instead, the firm advocates for a shift in strategy one where retailers and manufacturers work together to grow the pie rather than divide it.
“Evidence is starting to mount that in order for every player to win a little, the reins of control must shift in favour of collaboration. No-one will win a race to the bottom, so it becomes important for retailers and manufacturers to work together to grow and not further divide the size of the prize with consumers. This starts with understanding the drivers of consumer behaviour that are causing these brand performance shifts.”
The report identified several dynamics supporting this collaborative vision. Among them is the “brand halo effect” where trusted name brands lend credibility to private labels and “price anchoring” where premium pricing by brands makes private labels stand out as better value alternatives.
In many cases, popular private labels boost store traffic, benefiting both private and branded products. Moreover, the success of private labels can even expand entire product categories, lifting all brands within them, the report said.
“Here, we can see NIQ’s latest global assessment of some of the prominent symbiotic dynamics that both private labels and branded products can lean on for mutual success. Finding harmony lies in unlocking factors such as the brand halo effect and price anchoring for private labels and, for branded products, seizing the potential for increased traffic and market expansion,” said NIQ.
“You can struggle to survive alone or strive to grow the overall size of prize using these symbiotic dynamics to your advantage. Retailers can harness the credibility of well-known brands to boost the appeal of their own private labels. The perception that a store brand can match the quality or perception of a premium name brand builds consumer trust and drives sales.”
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