IGD is urging brands to focus on visibility, innovation and emotional connection to drive growth in an increasingly competitive, value-driven market.
In August, IGD reported that private label grew 52% faster globally than manufacturer brands in 2025 and now accounts for more than 40% of grocery sales across several major European markets, including the UK (44.3%) and Germany (46.9%).
With private label closing the gap on quality and trust, brands must prove their added value at every stage of the shopper journey, from discovery to purchase, according to IGD's latest research.
Justifying the premium
IGD warns that brands can no longer rely on heritage, recognition, or perceptions of superior quality to justify premium price points.
Instead, manufacturers should focus on finding new, modern ways to leverage the enduring drivers of long-term success: visibility, innovation and emotional connection.
Rachel Sibson, Senior Insight Analyst at IGD, said: “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.”
Trust continues to drive brand choice
Despite growing competition from private label, trust remains the strongest reason shoppers choose branded products, particularly in categories where efficacy, reliability and reassurance matter most.
IGD's research found the strongest brand preference in dental care (8.2/10), baby milk and drinks (8.1/10), hot chocolate and malt drinks (8.1/10), cat food (8.0/10) and laundry (7.8/10). In these categories, shoppers place a particularly high value on trust, familiarity and consistent performance.
However, the report warns 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.
Continually earning shopper preference
To help brands respond, IGD has identified three enduring drivers of long-term success: visibility, innovation and emotional connection. The report argues 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 fragmented shopping journeys and show up at key decision-making moments, whether through retail media, in-store execution, social media or partnerships.
Innovation is no longer limited to launching new products. The report highlights 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. These deeper connections can help build loyalty that extends beyond product performance or price.
Sibson added: "Brands have spent decades building trust. Now they must continually earn shopper preference to keep it."
A free sample of IGD’s report, ‘How brands drive growth in a value-driven market’, is available on the IGD website.