More than half of global consumers are now buying more private label products than ever before, finds a new report released today (Oct 21), highlighting how mounting challenges are reshaping the landscape for brands.
In an era of intense competition and shifting shopper behaviours, brands face unprecedented challenges in maintaining growth and loyalty. IGD’s latest report, ‘How brands can drive growth in challenging times’, delivers actionable insights and successful brand examples from across the globe.
Private labels are rapidly widening the price gap, with an 86 per cent difference reported in 2025, and more than half of global consumers (53 per cent) are now buying more private label products than ever before.
As these alternatives improve their design and features, the differentiation between brands and private labels becomes increasingly blurred in the eyes of shoppers.
Compounding this, diluted share of voice and the prevalence of brand and category switching mean that brands must work harder than ever to stand out and drive volume in a highly fragmented marketplace.
Despite these hurdles, brands have reasons to be hopeful.
“The battle for shopper choice is fiercely competitive, but brands are fighting from a position of strength. And it’s by playing to their strengths that brands can secure lasting victory,” said Michaela Jay, Insights Manager at IGD.
Consistency in shopper perception and trust remains high, ensuring that brands continue to drive product choice across most categories.
Loyalty towards brands remains robust, particularly when quality and dependability are paramount, such as when purchasing for families or special occasions.
In its report, IGD has identified three key drivers of brand success:
1. Visibility: Brands must strategically show up where shoppers’ attention is most engaged to build recognition and influence.
2. Innovation: Shoppers’ needs and wants are evolving faster than ever. Brands must ensure they stay on top of local and global trends, creating and evolving products and ranges that meet new shopper demand.
3. Emotive connection: Brands should focus on moving away from a transactional relationship with shoppers by creating connections that drive affinity with their products.
Jay continues, “We have identified three levers that stand the test of time and provide an advantage in the market. But it’s the execution that determines the winners.
"Whether you are a new brand, established brand or a retailer, you must ensure each lever is activated in a meaningful way to cut through the noise and engage shoppers.”