The supermarket landscape in 2025 is set for another major shift, with a projected 7% increase in consumers switching from national brands to private label products. This trend reflects growing consumer confidence in supermarket-owned labels, driven by affordability, improved quality, and economic pressures.
Private Label on the Rise
Private label products, once considered lower-quality alternatives, have evolved into strong competitors against national brands. Supermarkets have invested heavily in their own-label offerings, improving ingredients, sustainability, and branding to match or surpass big-name competitors. In 2025, price-conscious consumers are expected to make the switch in greater numbers as inflationary pressures and economic uncertainty persist.
Key Factors Driving the Shift
- Cost Savings – Private label products are often 20-30% cheaper than national brands, making them an attractive option during financial uncertainty.
- Quality Improvements – Supermarkets have enhanced their private label ranges, offering organic, premium, and eco-friendly alternatives.
- Brand Loyalty Decline – Younger generations are more willing to try different brands, reducing traditional loyalty to household-name products.
- Retailer Investment – Major chains like Tesco, Aldi, and Lidl are expanding their private label portfolios, pushing their own products over branded ones.
- Sustainability & Ethics – Private labels are aligning with consumer demand for responsibly sourced and environmentally friendly products.
Private Label Growth: A 10-Year Perspective
| Year | Private Label Market Share (%) | Consumer Switch from Brands (%) |
|---|---|---|
| 2015 | 35% | 2% |
| 2016 | 36% | 2.5% |
| 2017 | 37% | 3% |
| 2018 | 38% | 3.5% |
| 2019 | 39% | 4% |
| 2020 | 41% | 4.5% |
| 2021 | 42% | 5% |
| 2022 | 44% | 5.5% |
| 2023 | 46% | 6% |
| 2024 | 48% | 6.5% |
| 2025* | 50% | 7% |
(*Projected figures for 2025)
What This Means for Retailers
Supermarkets must continue to innovate and promote their private label lines to retain customers. Branding, marketing, and product differentiation will be critical in converting more shoppers from established brands to in-house alternatives. Retailers with strong private label offerings stand to gain the most in an increasingly competitive grocery market.
As 2025 unfolds, private label’s dominance is expected to continue growing, reshaping consumer habits and the supermarket industry as a whole.
