IGD reported that private label grew 52% faster globally than manufacturer brands in 2025, now accounting for more than 40% of grocery sales across several major European markets, including the UK (44.3%) and Germany (46.9%).

It warned that brands could “no longer rely on heritage, recognition or perceptions of superior quality to justify premium price points.

Rachel Sibson, senior insight analyst at IGD, commented: “Brands are not losing relevance, but they are losing the automatic advantage they once enjoyed.

“Now, brands must find new ways to activate the fundamental drivers of their success. Visibility means showing up consistently across a fragmented shopper journey, innovation extends far beyond new products, and emotional connection is increasingly built through stories, experiences and shared values.

“The brands that continue to succeed as private label closes the gap will evolve fastest and work hardest to continue earning shopper preference.”

Shopper perceptions of own brand improve

Despite growing competition from private label, trust remains the strongest reason shoppers choose branded products, said IGD, particularly in categories where efficacy, reliability and reassurance matter most.

However, the report warned that trust alone will not be enough to guarantee future growth as retailers continue to strengthen their own-brand ranges and improve shopper perceptions of private label quality.

In its report ‘How brands drive growth in a value-driven market’ IGD identified three “enduring drivers of long-term success”: visibility, innovation and emotional connection. The report argued that, while these fundamentals remain unchanged, brands must activate them in new ways to maintain relevance and justify a premium.

Visibility is becoming increasingly important as shoppers move across a growing number of online and offline touchpoints. According to IGD, successful brands are those that remain consistently present throughout shopping journeys and show up at key decision-making moments, whether through retail media, in-store execution, social media or partnerships.

The report also highlighted opportunities for brands to stand out through packaging, reformulation, activations, collaborations and new usage occasions, creating value that is harder for private label to replicate.

To build stronger emotional connections, brands are being encouraged to move beyond transactional relationships and create meaningful experiences rooted in purpose, storytelling, convenience and cultural relevance. IGD said that these deeper connections can help build loyalty that extends beyond product performance or price.