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A NEW global report by NielsenIQ (NIQ) reveals that more consumers are opting for private label products over branded ones, with 53% of shoppers increasingly purchasing store-brand items.
This shift comes as the world's top 10 global brands show signs of a resurgence in sales momentum in 2024, indicating ongoing competition among retailers and consumer packaged goods (CPG) manufacturers to capture consumer attention across various retail platforms.
Marta Cyhan-Bowles, Chief Communications Officer and Head of Global Marketing COE at NIQ, highlighted the importance of collaboration between manufacturers and retailers in response to this changing consumer landscape.
"The report emphasises the critical need for manufacturers and retailers to work together in order to drive the next phase of CPG growth and effectively respond to the evolving preferences of consumers," she said.
NIQ’s latest findings, part of the "Finding Harmony on the Shelf: 2025 Global Outlook on Private Label & Branded Products" report, offer a comprehensive look at how consumer attitudes towards private label and branded products are shifting globally.
The study outlines key trends, such as growing consumer confidence in private labels, with 68% of respondents viewing them as viable alternatives to name-brand products, and 69% acknowledging their value for money.
Additionally, 60% of consumers indicated they would purchase more private label products if a greater variety were available. Among the Millennial and Gen Z demographics, a majority (61% and 58%, respectively) are open to upgrading to premium-brand offerings.
This positive shift in consumer sentiment is mirrored by global sales data. NIQ Retail Measurement Services reported a 4.8% sales increase for the top 10 global brands, slightly outpacing the 4.3% annual growth in private label sales.
For retailers and CPG manufacturers, the report offers strategic advice on capitalising on these trends. For private labels, leveraging the brand halo effect—where proximity to premium brands enhances the appeal of store products—can be a powerful tool.
Additionally, using price anchoring strategies could encourage consumers to explore new or comparable products.
As for branded products, boosting in-store traffic through retailer endorsements and expanding market presence in popular categories like ready-to-drink coffee and snack bars could present valuable opportunities.
The global survey, conducted between December 2024 and January 2025, involved over 17,000 online consumers across 25 countries in regions including Asia Pacific, Europe, Latin America, the Middle East & Africa, and North America.
These insights offer valuable guidance for both retailers and manufacturers aiming to navigate the increasingly competitive and intertwined dynamics of private label and branded product sales. - March 28, 2025
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