Private label sales grew by 4.1% in value during 2025, compared with 2.7% growth for manufacturer brands. The growth comes as shopper perceptions of private label continue to improve.
Nearly half (47%) of shoppers globally said price is no longer the primary reason they buy private label products, while 52% now believe private label quality is equal to brands.
Private labels compete with brands
According to IGD, the UK is one of the world’s leading private label makers, with retailer-owned products accounting for 44.3% of grocery value sales, compared with a 39% average across Europe.
A handful of European markets – including Switzerland, Portugal, Spain and Germany – reported higher levels of private label penetration than the UK; however, eight European markets now have private label shares above 40%, said IGD, demonstrating how “deeply embedded” retailer-owned products have become in shopping habits.
“Shoppers are not trading down to private label products; they are actively choosing them over brands.”
In the US, private label sales reached a record US$282.8 billion in 2025 and grew nearly three times faster than national brands, highlighting the strength of the trend beyond Europe.
Sneha Haria, insight manager at IGD, said: “Our findings show private label has moved beyond its traditional role as a value alternative and is increasingly competing with brands on quality, innovation and relevance. Shoppers are not trading down to private label products; they are actively choosing them over brands, which is why they have become one of the industry’s most important growth drivers.”
The report highlighted Costco’s Kirkland as the world’s largest private label brand, generating more than US$90 billion in sales during 2025. Meanwhile, the report found that retailers such as Migros and Lidl have built private label brands that command loyalty through quality, consistency and innovation rather than low prices alone.
Haria continued: “The line between private label and brands continues to blur. The most successful retailers are creating brands that shoppers actively seek out, recommend and trust.”
IGD identified health and wellness as one of the biggest opportunities for future private label growth. Retailers are increasingly using their own brands to enter high-growth categories such as protein, functional nutrition, supplements, gut health and broader wellness solutions.
The organisation said it believes health will play a “critical role” in the next phase of private label development because it enables retailers to compete on expertise, trust and innovation rather than price alone.
