Across the food industry, a growing number of suppliers are being urged—if not forced—to shift their focus from developing their own branded products to manufacturing private label goods for major retailers. As supermarket chains expand their private label offerings to compete on price and retain customer loyalty, many producers are finding themselves sidelined if they refuse to adapt.
This shift is not necessarily by choice. Retailers are increasingly favouring private label for its flexibility, higher margins, and the ability to control pricing and product specifications. As a result, suppliers are often given a stark choice: retool operations to support retailer brands or risk being dropped altogether.
The impact is especially felt by small to mid-sized food producers who previously relied on building and marketing their own brand identities. These businesses now face a dilemma—invest in supporting someone else’s brand or gamble on finding new distribution channels. For many, private label has become the only viable route to remain visible on shelves.
While the private label market continues to thrive, especially during inflationary periods when consumers seek value over brand loyalty, the long-term consequence may be a shrinking landscape for innovation and diversity. The more the supply chain becomes dominated by retailer-owned products, the harder it is for independent brands to compete or even survive.
This trend raises critical questions about the future of branding in food retail. If suppliers lose the ability to market their own names, what does it mean for consumer choice, product differentiation, and the industry’s creative energy?