Private labels are tightening their hold on health and beauty shelves, putting growing pressure on established brands to fight for relevance, according to new research by Trade Intelligence.
The Trade Intelligence Health & Beauty report shows that retailer-owned brands are rapidly expanding their share of sales, driven by competitive pricing and growing shopper trust.
At Clicks, SA’s largest listed beauty and pharmacare retailer by market capitalisation, more than 31% of front shop sales now come from private labels, while personal care growth was boosted by a 20.5% uptick in private brand sales by mid-2025.
This presents a challenge for traditional health and beauty brands, which are being squeezed by retailer power and changing shopper behaviour.
Trade Intelligence insight lead Andrea Slabber said shoppers are increasingly price-sensitive and research-driven, with 89% researching before buying and 98% of younger consumers doing so online before entering a store.
“Healthcare shopping is becoming increasingly research-driven,” she said.
“Retailers’ digital platforms are often the first point of influence, which raises key questions for brand owners: how can their messaging break through to ensure visibility in this retailer-controlled conversation? How can you ensure your message reaches your consumers when the path to purchase starts online, long before the shelf? The answers lie in a nuanced, channel-specific strategy informed by shopper mindsets.”
As retailers such as Clicks and Dis-Chem strengthen their private label ranges and dominate digital influence, Slabber said, brands risk losing visibility and market share unless they find new ways to differentiate through quality, innovation and emotional connection.
“Shopper behaviour differs notably across retail formats. For personal care, Clicks and Dis-Chem are seen as stock-up destinations for deals, while online platforms serve both for value-driven bulk buys and as discovery hubs for new products. Healthcare shoppers, meanwhile, use pharmacies for specific needs but lean on online platforms for planning and browsing. These insights highlight the importance of tailoring promotions, innovation, and range positioning to the unique role of each channel,” said Slabber.
The latest FNB/BER Consumer Confidence Index reinforces the pressure facing retailers and brands alike. Consumer sentiment fell to -13 in the third quarter, driven by a sharp decline among middle-income households grappling with higher living costs and weak job prospects.
With household spending expected to slow further in the months ahead, Slabber said the future of brand growth in health and beauty now depended on sharper channel strategies and stronger shopper engagement to compete effectively in a market where retailers are setting the pace.
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