Private Label Brands in 2025: Global Shift Explained
Private label brands are booming in 2025. Discover why shoppers trust them, what’s driving global growth, and how retailers are adapting worldwide.
PRIVAT LABEL
Private Label Brands in July 2025: Full Picture, Explored
Private label—once seen as discount alternatives—is now a dead‑on, quality‑focused choice for shoppers globally. This deep dive uses Google’s AI insights plus new angles to give you a 100% unique, human‑crafted article that outranks the rest.
Key Trends & Stats
Private Label Boom
Nearly 50–75% of consumers say they’re buying more store brands.
In 2024, U.S. private label grocery sales rose 3.9%, almost quadruple national brands.
Growing Trust & Loyalty
Around 72%–75% view private labels as strong alternatives to national brands.
59% of US adults trust them—up dramatically.
Household Penetration
Private labels are in nearly every U.S. household across categories.
Price Advantage
Store brands remain 20–30% cheaper—even after an 8% price hike.
Deeper Insight: Why It’s Working
TrendInsightValue + QualityOver half of shoppers rely on price as a quality indicator—private labels match that need.Demographic ShiftsMillennials and Gen Z are twice as likely as Boomers to spend more on store brands.Global Expansion52% of Indian shoppers switched to private labels; 70% say quality is higher.Tiered StrategyRetailers offer budget, mid-range, and premium store-brand tiers.Innovation & PremiumPremium private label now makes up 40% of overall store-brand spend.Omnichannel & Digital91% of omnichannel shoppers expect rich online product content.Shelf CollaborationNational and private labels are co‑presented—benefiting both sides.AI & Data‑Driven LaunchRetailers use AI and consumer insights to launch products that hit the mark.
Regional Nuance
In Germany, ALDI’s store brands often win taste tests over national names.
In India, private label growth is rapid and seen as higher quality by a large share of consumers.
Price Gap Explained
Since 2019, national brands cost over 38% more—roughly $2 extra per item.
Gen Z Viewing Trends
Younger consumers look for visual-rich product pages and aesthetic packaging before they buy.
AI in Inventory & Personalization
AI tools help retailers predict trends, stock efficiently, and tailor product designs to local preferences.
Retailer Strategy Snapshot
Large chains are launching hundreds of new store-brand items yearly.
U.S. retailers like Sprouts and Aldi lead innovation with specialty and health-focused lines.
Next Trend: AI‑Powered Digital Search
With new tools like generative search and virtual try-ons, discovering store brands online will get easier.
Trusted: Around 75% of consumers see them as good value; 72% as real alternatives.
Widespread: Nearly all U.S. households purchase store brands.
Affordable: Still 20–30% cheaper than national brands.
Smart strategy: Built around tiering, AI, digital content, and loyalty.
Global: Especially strong growth in Europe, the U.S., and emerging markets like India.
Recommendations for Retailers & Brands
Segment Your Offer
Use a clear multi-tier strategy: value, mid, and premium ranges.
Upgrade Your Online Presence
Use crisp imagery, ingredient transparency, allergen info, and clear pricing on product pages.
Use AI Smartly
Let data guide you: test new launches, monitor sentiment, and target gaps.
Emphasise Trust Signals
Highlight organic, ethical, or sustainable credentials to stand out.
Localise Where Needed
In Germany, promote quality awards; in India, emphasise affordability and trust.
What's Next to Watch
AI Adoption: Virtual discovery tools will help shoppers find store brands faster online.
E-commerce Dominance: Digital sales of store brands are expected to dominate by 2040.
Premium Expansion: Health, organic, and luxury private labels are growing fast.
Retail Events: Major shows like Anuga will showcase AI-driven packaging, design, and supply chain tools.
Final Takeaway
By July 2025, private label is no longer just a “cheap” option. It’s a respected, trusted, and often preferred choice for shoppers worldwide. Retailers who focus on clear tiering, rich content, smart tech, and premium innovation are winning—and it’s only the beginning.