Major Private Brand & Consumer Trends

Private Brands have come a long way ever since their introduction to the market. Once seen as cheaper, second-tier substitutes for name brands, Private Brands have been steadily consolidating their territory and reshaping retail dynamics worldwide. Currently, Private Brand has reached such a level of mainstream acceptance that it has become an undeniable force in the retail world. Globally, Private Brands account for over 45% of total grocery volume, with a double growth rate when compared with national brands (1.4% vs 0.7%). Moreover, Private Brand continues to register increases in both value and volume share, with its global value share growing by 0.1% to reach 24.9% (IGD 2025, NielsenIQ).

This momentum stems from a multitude of socio-economic factors that have been shaping consumer attitudes in recent years. If lower quality was once the dominant perception linked to the overall Private Brand offer, the stigma has largely evaporated: almost 70% of consumers say that Private Brands are good alternatives to national brands. In addition, more than half report they are buying more Private Brand products than ever before. (Nielsen, 2025)

This is not just a consequence of persistent inflation or supply chain turbulence that continues to fuel price sensitivity. It reflects more profound changes in consumer behaviour, as Private Brands have gained their space in supermarkets’ aisles and consumer preferences for years to come.

Within this context of market and consumer dynamics, this article identifies four strategic areas and key trends expected to continue driving Private Brand growth and development in the years to come: Innovation, Sustainability, Connections, and Value.

This transformation has positioned them as a driver of innovation, allowing retailers to set trends, build loyalty, and command greater influence over entire categories.

From a practical standpoint, this has been pursued in multiple ways, with digital tools and AI technologies enabling retailers and brands to be faster, smarter, and more consumer-centric in design, sourcing, production, and marketing. 

AI-driven tools have been an undeniable trend in recent years, enhancing product formulation, consumer demand prediction, and even flavour invention, enabling the rapid development of products that align with emerging diets, functional health trends, and cultural tastes.

One challenge for retailers and brands is managing vast amounts of data, encompassing internal sales data, loyalty program insights, supplier partner information, third-party reports, and other relevant information. However, data is key in driving decisions around pricing, demand, assortments, and Private Brand strategies. So, retailers and brands are exploring the use of AI to automate insights and develop a more personalised in-store and online shopping experience.

In addition, AI-enhanced personalisation also opens new pathways for players to explore in the future, catering for particular traits or preferences.  In this regard, retailers can now utilise loyalty data to develop micro-targeted products for key demographics, creating unique SKUs tailored to specific communities or lifestyle needs. This kind of innovation positions Private Brands not just as competitors, but as faster, more adaptive forerunners when compared to national brands.

USA retailer Kroger is using AI analytics for trend analysis and Private Brand development. Earlier this year, the retailer announced plans to roll out “trendy” Private Brand products—like mushroom tea and Hatch chile-flavour kettle chips—and is targeting the launch of 900+ new items within the year (Grocery Dive). This surge in Private Brand SKUs is closely tied to Kroger’s use of AI to analyse market trends and customer preferences, enabling it to identify emerging demand niches and respond with on-trend product development.

Digitalisation and AI can also play a key role in the optimisation of a retailer’s portfolio by flagging potential pain points and fostering teams to act pre-emptively. For example, the focus on removing artificial or harmful ingredients is becoming increasingly relevant, making product reformulation a must-have for retailers and brands. However, with potentially thousands of items in the assortment, retailers may be unaware of which products contain ingredients that should be removed or phased out in the near future.

Resorting to platforms that offer an up-to-date and thorough overview of all specifications and touchpoints throughout a product's lifecycle can significantly simplify the reformulation process. Instead of the labour-intensive task of individually monitoring each SKU, these tools can deliver a digitised inventory of product information and ingredient details. This approach allows retailers and suppliers to quickly access the information they need, saving considerable time and ensuring the data is accurate and trustworthy, ultimately reducing risks and building trust.

Majid Al Futtaim, which owns the exclusive rights to operate Carrefour in the UAE, has recently announced the deployment and rollout of Advertima’s Audience AI across its hypermarkets, in partnership with its retail media network, Precision Media. The objective is to “unify the online and in-store retail media buying experience”, using visual-spatial 3D sensors to identify who is shopping in-store, such as families, young professionals, or bargain hunters, and deliver tailored messages to them in real-time through digital screens. Although the primary focus of AI in this context is on media and national brands, there is a significant opportunity to leverage these real-time insights to determine which Private Brand products appeal to specific shopper segments. This information can then guide assortment strategies as well as future product development.

Sustainability is increasingly central to consumer decision-making, but its translation into everyday purchases heavily relies on affordability and accessibility. Therefore, Private Brands are uniquely positioned to democratise sustainability, making eco-friendly options available at lower prices than branded competitors.

Global challenges, such as climate change, supply chain disruptions, and geopolitical instability, are reshaping consumer expectations, making them more conscious of changes in the food landscape and prompting them to demand increased transparency, as well as ethical and local sourcing. For example, 75% of German consumers believe recent events disrupting international supply chains have shown the importance of supporting local businesses (Mintel, 2025).

Today, food represents more than just flavour or nutrition; it embodies transparency, trust, and values. Private Brands have the opportunity to foster trust by clearly communicating the origins and production methods of their products. Additionally, by promoting regional sourcing and reducing supply chain lengths, they can enhance their ethical and environmental message.

German retailer Lidl is responding with radical transparency through its Way To Go! Orange Juice. This product features sustainably sourced, fully traceable oranges from Brazil, obtained directly from Fairtrade-certified farmers and processed separately from non-Fairtrade ingredients. In South Africa, Woolworths Food Cranberry & Citrus Muesli Rusks are locally baked in small batches using locally sourced flour and free-range eggs, and handcrafted in the Boland community, which emphasises locally baked goods with community sourcing stories. These initiatives help to create emotional trust and cultural resonance with consumers.

With sustainability emerging as a crucial global concern, the Middle East is actively addressing the environmental challenges posed by rapid development and increasing consumerism. To aid the region's broader shift towards greener and more environmentally responsible practices, numerous retailers are forming partnerships and spearheading initiatives that emphasise local sourcing and production. 

Majid Al Futtaim, the operator of Carrefour in the UAE, has recently entered into a Memorandum of Understanding (MoU) with the UAE Ministry of Industry & Advanced Technology as part of the “Make It In The Emirates” (MIITE) initiative. This agreement aims to promote products made in the UAE and enhance their availability in Carrefour stores, both in physical locations and online. The initiative ensures dedicated space for these local products, providing manufacturers with quick access to the market. Furthermore, it offers the potential for local producers to be included in Carrefour’s Private Brand sourcing process, enabling the development, packaging, and large-scale distribution of products. From a broader benefits perspective, this initiative enhances traceability and shortens supply chains, which in turn reduces transport emissions and boosts overall resilience.

Shaped by changing consumer expectations, Private Brands have transformed from budget-friendly alternatives into strategic growth engines for retailers. Consumers are increasingly demanding that these ranges reflect their personal values, lifestyles, dietary preferences, and cultural or ethical priorities, reshaping how retailers approach product development. At the same time, advances in digital tools, artificial intelligence, and data analytics have given supermarkets unprecedented visibility into shopper behaviour, making it possible to identify emerging needs with precision and respond to them quickly. This convergence of consumer demand and technological capability has paved the way for a new era in Private Brand—one where personalisation and needs-based approaches are as important as price and quality.

In this context, personalised options are rapidly becoming central to Private Brand development because they turn one-size-fits-all ranges into relevant, loyalty-building solutions for individual consumers. Rather than competing only on price, Private Brands that are informed by consumer trends and needs deliver products that they recognise as meaningful to their lives. That shift matters because it increases trial and repeat purchases, raises perceived value, and allows retailers to defend their margins while differentiating themselves from national brands.

Two vectors make the needs-based Private Brand especially powerful today. First, richer customer data and analytics enable retailers to detect micro-segments (e.g., flexitarians, low-sugar shoppers, halal-seeking households) and translate those signals into SKU specifications and formulations. Second, consumers expect relevance and will switch to Private Brand SKUs that match their dietary needs or local tastes if the quality, transparency, and price align with their expectations.

Private Brand growth is rooted in personalised and needs-based shopping. NIQ reports that 58% of consumers say brand or Private Brand does not matter—they just buy what fits their needs. This democratisation of choice opens new opportunities for personalised Private Brand ranges.

Within this premise, consumers can fully enjoy the simple pleasures of everyday life, enhance their self-esteem, and essentially perceive that, after 50, there is a new golden age to be experienced. From a social point of view, this is especially relevant, as Italy was the oldest country in the EU in 2024, with almost a quarter of the population being over 65 years old (Euronews, 2024).

From a regional perspective, the Middle East is stepping up and closing the gap in consumer perceptions of quality and the value proposition of Private Brands. According to a recent NIQ report, global surveyed respondents considered Private Brands are both good value for the money (69%) and good alternatives to name brands (68%). In contrast, 80% of surveyed Egyptian consumers considered Private Brands to be good value for the money, and 77% considered them good alternatives to name brands. Additionally, 78% of Egyptian consumers stated that they would buy more Private Brand products if a larger variety were available.

Retailers in the region are increasingly resorting to storytelling to foster emotional connections, utilising origin stories to engage with consumers. In the UAE, Spinneys has recently unveiled Discovery by Spinneys, a premium Private Brand range curated to elevate consumers' perception of Private Brand quality and inspired by a clear consumer appetite for elevated, exclusive offerings. However, the launch of Discovery by Spinneys was not just about putting a new brand on shelves — Spinneys tied it to curated sourcing stories, like the exclusive Scottish strawberry variety that was highlighted as a hero product or the British Mini San Marzano Tomatoes: “Grown on the Isle of Wight in the UK by Paul Thomas and his team, these tomatoes have been specially selected for their firm, fleshy texture and sweet juicy flavour” (Spinneys, 2025). That storytelling gives consumers a sense of being part of something unique. Moreover, the name “discovery” itself sets the theme for the narrative — exploring, tasting, and experiencing new things — which is more than just functional value; it taps into curiosity and lifestyle aspirations, creating emotional connections.

Value in Private Brand today still starts with affordability — but it no longer ends there. In today’s retail landscape, the definition of “value” has expanded. Consumers still care deeply about affordability — especially in markets navigating inflation and cost-of-living concerns — yet value is no longer measured by price alone. Consumers are becoming increasingly sophisticated, and their purchasing decisions reflect broader lifestyle priorities that encompass several interlinked dimensions, including premiumisation, wellness, convenience, and indulgence.

The concept of premiumisation is increasingly relevant today, as consumers desire access to high-quality products that reflect an aspirational lifestyle without the hefty price tag associated with established brands. Wellness has emerged as a critical focus for consumers, particularly as awareness of health, nutrition, and ingredient transparency rises. Consumers are now more informed than ever, seeking out products that not only contribute to their well-being but also carry clear information about sourcing, processing, and nutritional value. This desire for transparency has led to heightened expectations regarding labelling and ingredient lists, as consumers seek choices that align with their health goals. In our fast-paced world, convenience has become an absolute necessity. Individuals are increasingly looking for solutions that help them save valuable time and reduce daily effort—whether through ready-to-eat meals, one-click online shopping, or multi-purpose products that simplify routines. Brands that prioritise convenience often cultivate dedicated loyalty among busy consumers who appreciate the ease of use their products offer. Lastly, the notion of indulgence plays a vital role in the consumption landscape, tapping into the emotional needs of consumers. Many consumers seek out small luxuries—be it a decadent dessert, a calming herbal tea, or a beautifully crafted skincare product—that elevate their everyday experiences. These indulgent moments can provide a welcome escape from routine, offering a sense of pleasure and self-care that is increasingly valued in daily life.

Global retailers are reshaping their Private Brand portfolios to deliver on all these fronts. They understand that Private Brand is no longer a fallback option; it is a strategic tool to win loyalty, differentiate the store, and build trust. By layering affordability with richer dimensions of value, retailers are creating Private Brands that can stand shoulder to shoulder with — and sometimes surpass — national brands in relevance, desirability, and consumer connection.

In the Middle East, consumers are becoming increasingly selective, balancing their desire for premium products with a focus on value. For example, both the UAE and Saudi Arabia have experienced double-digit growth in the premium and value segments of fast-moving consumer goods (FMCG) (NielsenIQ, 2025). But quality remains a priority for consumers; 72% of shoppers in the UAE and 71% in Saudi Arabia are willing to pay more for high-quality products (NielsenIQ, 2025).

Convenience is also a significant factor in the growth and development of Private Brands in the region. Currently, 63% of consumers in the UAE and 64% in Saudi Arabia (KSA) believe it is worth paying more for anything that saves them time. Notably, this percentage has increased by nearly 10 points compared to the previous year (NielsenIQ, 2025). Supermarkets are responding with ready-to-eat and ready-to-cook Private Brand ranges, making it easier for consumers to save time without sacrificing quality or price.

Private Brands have progressed from price-focused alternatives to strategic growth drivers for retailers, underpinned by four strategic areas and key trends: Innovation, and the power of digitalisation and AI in anticipating trends and accelerating product development; Sustainability, guided by transparency, locality, and trust; Connections and the relevance of personalised options in delivering needs-based assortments that reflect diverse lifestyles and values; and Value, with a redefinition of “value” to encompass wellness, premiumisation, convenience, and indulgence alongside affordability. Together, these strategic areas position Private Brands as competitive, relevant, and increasingly capable of outperforming national brands.

For retailers and manufacturers seeking to remain competitive and relevant in the Private Brand landscape, these four key trends present clear opportunities:

1. Leverage AI and digital tools to anticipate consumer needs, unlock more thorough insights, or spot niche opportunities. Retailers and manufacturers can accelerate Private Brand innovation and consistently launch on-trend, differentiated products that resonate with evolving consumer lifestyles. Digital tools can also help monitor product portfolios, flag outdated ingredients, and streamline reformulation, ensuring Private Brands remain trusted, compliant, and ahead of consumer expectations.

2. Democratise sustainability, using Private Brands to help consumers make sustainable choices without compromising on price. Communicate openly about product origins, sourcing practices, and community impact, creating trust, emotional engagement and local relevance with consumers.

 3. Build emotional connection through storytelling and personalised assortments to elevate Private Brands beyond price and function. Weaving compelling narratives around sourcing, craftsmanship, and uniqueness not only enhances perceptions of quality but also creates emotional resonance with consumers. Personalise Private Brand ranges to address underserved consumer needs, which will capture new demand and differentiate the offer, ultimately driving loyalty and repeat purchase.

4. Position Private Brand as aspirational yet accessible, offering products that not only save money but also elevate and deliver experiences consumers truly value. Develop Private Brand ranges that address today’s consumer priorities, whether that is through ready-to-eat for convenience, high-quality ingredients for premiumisation, or small luxuries for indulgence.

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.