The “Extra-Value” of Private Brands: Moving Beyond Price

GLOBAL PERSPECTIVE

Private Brands have undergone a dramatic transformation over the years. Once synonymous with low-cost, generic alternatives to national brands, they have matured into sophisticated, high-quality offerings that compete head-to-head with, and sometimes outperform, well-known branded products. This evolution has introduced a new layer of value, extending beyond just price. In today's competitive retail environment, Private Brands are offering consumers additional benefits, such as better health and wellness options (including “free-from,” gut health, or nutritionally balanced products), convenience, or premiumisation. Here is a deeper look at some of these elements and how they contribute to the rising “extra-value” perception of Private Brands.

Historically, Private Brands were positioned as budget-friendly alternatives. While this remains a foundational value proposition, many retailers have introduced premium Private Brand lines that rival National Brands in both quality and innovation.

Premiumisation is anchored in key traits such as top quality, attractive packaging, gourmet ingredients, or unique formulations. Retailers like Tesco in the UK, with its Tesco Finest brand, have led this charge. These products appeal to consumers seeking an affordable indulgence—premium experiences at lower prices than their branded counterparts.

Beyond Price, another significant shift in consumer behaviour over the past decade has been the focus on health, wellness, and ingredient transparency. The rise of more diverse dietary preferences (e.g., gluten-free, dairy-free, plant-based) has created a strong demand for “free-from” options, which can be free from allergens, as well as artificial ingredients, GMOs, and animal raw materials.

Private brands have responded with agility, often quicker than national brands. Retailers have diversified their offerings and presented dedicated lines to respond to these specific customer needs. This diversification has been translated into key areas, including gluten-free snacks, plant-based meat and dairy alternatives, non-GMO and organic lines, as well as no-added-sugar and low-sodium alternatives.

For example, in the USA, Kroger’s Simple Truth line offers an extensive range of natural and organic products. In contrast, Sainsbury’s FreeFrom range in the UK caters specifically to customers with allergies. These “free-from” ranges provide reassurance, clarity, and choice—key aspects that “extra-value” customers seek when aligning everyday purchases with their individual health goals.

In an increasingly time-starved world, convenience is king, and beyond individual product features, Private Brands did not discard the hectic pace of everyday life. They are innovating rapidly to meet the demands of busy lifestyles by offering products that are ready-to-eat or ready-to-cook, pre-portioned or single-serve, or easy to prepare with minimal ingredients and straightforward steps.

From microwaveable meals and pre-cut vegetables to meal kits and frozen gourmet options, convenience-focused Private Brand ranges are winning over consumers who prioritise time and simplicity. Retailers such as Marks & Spencer in the UK and Woolworths in Australia have curated extensive Private Brand ranges of high-quality ready meals, which rival restaurant-quality offerings.

Woolworths, for instance, offers a vast range of meals, from pastries to roasted/slow-cooked meats, vegetarian dishes, and pan-fried options in their COOK Private Brand range. UK’s Marks and Spencer relies on Cook with M&S Private Brand range to offer sauces, pastes and seasonings that can easily complement and enrich everyday meals.

As Private Brands evolve, they are no longer simply extensions of a retailer—they are brands in their own right. Strong, distinctive packaging, clear messaging, and consistent quality for the right price have helped Private Brands build consumer trust and amplify emotional loyalty. In this regard, retailers are investing in storytelling—creating identities for the Private Brands that resonate with their audiences. For instance, US retailer Target’s Good & Gather Private Brand focuses on taste, simplicity, and wholesome food, characteristics that are communicated to consumers.

In the evolving retail landscape of the MEA region, Private Brands are emerging as powerful tools for differentiation, enabling retailers to build consumer loyalty.

Recognising that 74% of consumers in the MEA region prefer to purchase local products to support local brands (GlobalData Consumer Survey, Q2-2025), retailers are increasingly focusing on sourcing ingredients locally and promoting the growth of local businesses. Aligned with this trend, in May 2025, retailer Lulu in the UAE introduced a new line of locally sourced products to its Private Brand offering. With a curated ingredient selection, Private Brand Lulu’s new range includes items such as coffee, eggs, and chocolate.

There has also been a focus on delivering convenience-led solutions, with retailers embracing packaging innovations that cater to busy, on-the-go lifestyles, which has reshaped how consumers interact with Private Brands. Consumers perceive this effort and recognise it: over 35% of MEA consumers choose Private Brands because they offer variety of choice. 33% also recognise that Private Brand offers unique products (GlobalData Consumer Survey, Q2-2025).

The convenience trend also ties into on-the-go packaging, resealable containers, and innovative design elements that make Private Brands not only easier to use but also more aligned with modern, mobile lifestyles. In this regard, Al Hatab, well known in Saudi Arabia for its bakery products, has launched a new, larger store concept in Riyadh’s Al Wadi area, anchored on a “Food market” approach. This new outlet highlights fresh and high-quality foods and places a strong emphasis on ready-to-eat and ready-to-cook offerings to cater to the increasing consumer demand for convenient meal solutions.

Private Brands have evolved from value-based alternatives into powerful drivers of innovation and consumer loyalty. No longer just about affordability, today’s private brands are setting trends—offering elevated experiences through premium-quality, health-conscious options, and lifestyle-focused offerings.

For retailers seeking to remain competitive and relevant in the Private Brand landscape, this evolution presents clear opportunities:

1. Go beyond cost savings by investing in additional benefits such as premiumisation or health-forward formulations. Consumers are seeking products that align with their values and lifestyles.

2. Innovate in products and packaging that support on-the-go living and easy consumption. Convenience is now a core component of perceived value.

3. Use storytelling to create deeper ties with the audience. Private Brands that feel personal and trustworthy foster stronger loyalty.

As expectations continue to rise, Private Brands must lead with relevance, responsibility, and innovation—redefining what it means to deliver that “extra value”.

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About Daymon

With 50 years of experience building successful private brand programs around the world, Daymon is the only solution provider that influences all aspects of private brand development, from strategy to execution to consumer engagement. Daymon’s unique approach helps retailers and brands set themselves apart through a full suite of best-in-class private brand development services, including: strategy, analytics and insights, product development, supplier development and management, account management, and design and packaging management. Daymon drives brand innovation, differentiation and results.

For more insights and recommendations for driving your brand, contact idc@daymon.com.