Private Labels Aren't Cheap Anymore – And That's a Good Thing
- Jul 16
- 2 min read
Updated: 3 hours ago
For many years, private label products were viewed as the budget-friendly alternative to well-known brands. Today, that perception is changing. Rather than competing on price alone, retailers are investing in quality, innovation and brand identity, transforming their own-label products into options that consumers actively choose.The price gap between private label and branded products has narrowed significantly. Instead of being 35–50% cheaper, many private label products are now priced just 10–20% below leading brands. This means consumers are no longer paying simply for a lower price—they are choosing products that offer genuine quality and excellent value for money.This shift reflects changing consumer expectations. Today's shoppers want products that combine competitive pricing with high-quality ingredients, attractive packaging and a shopping experience they can trust.For retailers, the benefits are substantial. Private label products typically deliver higher profit margins than national brands, help supermarkets stand out from competitors and strengthen customer loyalty. Retailers such as Tesco, Aldi, Lidl and Sainsbury's continue to expand their premium own-brand ranges to meet growing consumer demand.Market data also supports this trend. In 2025, private label products accounted for 21.3% of total market value, with annual growth of 3.3%—around three times faster than many branded products. Consumer confidence is also increasing, with more than 60% of European shoppers believing that private label products now match the quality of leading brands.The biggest challenge for retailers is maintaining the right balance. Higher prices must be backed by noticeable improvements in quality; otherwise, retailers risk losing the trust of customers who originally chose private labels because of their affordability.
Private labels are no longer simply the cheaper alternative—they are becoming brands that consumers choose for their quality, value and reliability.
Do you think private label brands could outperform the world's biggest brands in the years ahead?
If you would like to know more about this topic, please contact us on danieln@merxmarketing.co.uk
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