Private label is increasingly being viewed as a credible alternative to national brands across value, mainstream and premium segments, according to new research from NielsenIQ (NIQ).
The findings come as consumers continue to reassess spending following a 26 per cent rise in FMCG prices globally between 2021 and 2025. NIQ's latest report, A Tale of Two Consumers: The Polarized Mindsets Reshaping Global Consumption, produced in collaboration with World Data Lab, found that shoppers are becoming more focused on the combination of quality, value and relevance rather than simply the brand name.
58 per cent of consumers surveyed said they do not care whether a product is a national brand or private label, saying they simply buy what they need. Meanwhile, 68 per cent see private label as a good alternative to national brands and 69 per cent believe private label offers good value for money.
The trend is particularly pronounced among younger shoppers, with 67 per cent of Gen Z consumers saying they believe private-label products are just as good as national brands.
NIQ also found that around one-third of price-constrained consumers will switch to a lower-priced product or whichever brand is on promotion, highlighting the increasingly fluid relationship shoppers have with brands.
The findings have implications for retailers and suppliers as private label moves beyond its traditional role as a cheaper alternative.
NIQ said retailers are increasingly using product innovation, packaging, premium ingredients and stronger product claims to position own-label products as desirable upgrades, allowing them to compete with established brands at higher price points as well as in value ranges.
“This is one of the most significant shifts happening in consumer goods today,” said Ramon Melgarejo, president of e-commerce at NIQ.
“Consumers are no longer evaluating products primarily based on who makes them. They are evaluating whether a product delivers the right mix of quality, value, convenience, and relevance. That has created a much more democratic and competitive shelf than we've seen historically.”
NIQ said consumers can move between an “upgrade” mindset and a “price-constrained” mindset depending on the category, occasion and perceived value.
Snacks show similar polarisation
The findings are particularly relevant to the convenience channel, where shoppers are balancing value with demand for more premium products.
Recent research by Asian Trader found a similar trend in the Crisps, Snacks & Nuts category. Value was identified as the biggest shopper trend by 36.3 per cent of retailers, while 29.7 per cent reported increased demand for premium snacks.
The combination suggests that retailers need to cater for both ends of the spending spectrum rather than assuming that cost-conscious shoppers are simply trading down.