What makes shoppers choose own-brand products?

The Challenge	The Opportunity	The Playbook
A lack of loyalty as 58% of shoppers are no longer persuaded by brand names. A third will buy whatever is cheapest or on offer.	Gain market share by appealing to brand-switching shoppers. Maintain market share by encouraging loyalty.	Focus on premium products to raise revenue. Build ethical credentials and fast reliable delivery. Create loyalty schemes to keep customers engaged.

Most shoppers no longer make purchase decisions based on brand names, but simply buy the things they need, even if that means choosing own-brands, according to the recent Nielsen IQ report, A Tale of Two Consumers: The Polarized Mindsets Reshaping Global Consumption.[1]

The headline statistic from the report reveals that 58% of consumers worldwide are no longer swayed by brand names when comparing with ‘private label’ alternatives, more commonly known in the UK as own-brands.

On several measures, the preference for private labels stands at more than two thirds:

67% of Gen Z believe own-brands are as good as brand-names
68% of all consumers think private-labels are a good alternative to brand-names
69% of all consumers think own-brands offer good value for money

All of this adds up to a lack of loyalty. The report found that a third of customers shopping on a budget will switch to the lower-priced product, or whatever is on promotion.[2]

When do shoppers choose own-brand products?

Nielsen IQ found that shoppers are broadly divided into two groups, but are “constantly shifting between two mindsets” regardless of their age group or income level.[3]

These two mindsets are:

1. A willingness to pay more for products they value and brands they trust
2. A preparedness to ‘trade down’ when the higher brand value is not clear

It is perhaps not surprising that this is especially the case when shopping for essentials. Everyday consumer goods drive the greatest momentum in own-brands, whereas luxuries like alcohol, personal care and pet food continue to deliver value for brand-names[4].

Overall, the perception that private-label products offer quality on a par with national brands, while also offering value for money, is a driving force behind robust growth in the private-label food and drink market.[5]

How fast is the own-brand market growing?

The global market for own-brand food and drink is forecast to achieve 7% compound annual growth throughout 2025-30.[6]

However, this is not solely due to an increase in sales volumes. Revenues are also rising as more gourmet and premium own-brand products hit the shelves, for example in the UK:

Aldi: Specially Selected
Asda: Extra Special
Lidl: Deluxe
Morrisons: The Best
Sainsbury’s: Taste The Difference
Tesco: Finest

Promoting private-label products does not happen in isolation. Retailers are incorporating their own-brand ranges – including premium price points – across the full range of their marketing activities, including digital channels.

“Aggressive premiumisation and gourmet differentiation [combined with] digitisation and omni-channel brand integration will lead to sizable demand in the market.”

– TechNavio, May 2026[7]

We have seen the power of omni-channel marketing to attract brand-switching consumers and encourage long-term loyalty among existing customers.

Loyalty and reward schemes are an excellent way to do this, generating better retention and greater referrals, differentiating your brand in a crowded market, and transforming your most loyal customers into fully fledged brand ambassadors.

How to make an own-brand stand out

Private labels can stand out through a combination of authority, trust and perceived quality.[8] Premium private label reinforces these, while offering an opportunity to create a product story distinct from other own-brand lines.

As we move into the Golden Quarter of 2026, it’s worth noting the performance of premium private-label products in the run-up to Christmas 2025:

Premium private label grew 9% during Christmas 2025
92% of shopping baskets contained premium private-label products
Total UK spend on premium private label passed £1 billion

The traditional ‘discount’ retailers once again achieved above-average performance, with sales of Lidl Deluxe up by 11% and Aldi Specially Selected up by 12%.[9]

“Premium private label is one of the UK’s strongest growth areas. Retailers have moved beyond viewing premium tiers as seasonal or discretionary; they are now structural drivers of value perception, quality authority and margin mix.”

– IGD, 2026[10]

What factors influence consumer perception of product quality?

Consumers no longer necessarily associate a name brand with better quality – so what are they basing that evaluation on in 2026? The Levercliff UK Consumer Tracker survey of over 1,000 shoppers not only reveals the factors that influence consumers’ evaluation of product quality in 2026, but also how they have changed in the past year.[11]

It revealed that:

21% associate quality with brand name, down 8% year-on-year
22% equate quality with ‘less processed’, up 6%
27% think quality depends on natural ingredients, up 7%

Interestingly, the survey found an even higher percentage, 30% of respondents, consider premium private label to be higher quality – a larger proportion than those who favour brand names.

Promotions are an increasingly important tool to help private labels stand out. The survey found that new product discovery is still most likely to take place in-store, but social media and price promotions are gaining significance, while traditional TV and magazine advertising is on the decline.

How to maximise sales of own-brand products

Revenues rise not only with the number of products sold, but also with the value of those products. Premium and super premium products have driven profits up in the own-brand battleground.

Levercliff found nearly half of UK shoppers buy premium own-brands sometimes, while a similar proportion have purchased ‘super-premium’ own-label products in the past.[12]

Major retailers are embracing this trend at all levels, from discount own-brand goods to super-premium private-label products.

“Retailers are capturing growing revenue through expanding private-label programmes across multiple price tiers – from entry-level value lines to premium own-brand ranges challenging established branded products on taste, packaging and price.”

– Industry Today, 2026[13]

Industry Today’s September 2026 report made several strategic recommendations for grocery retailers looking to compete in the coming decade:

Increase development of premium private-label products to compete with major retailers for market share
Invest in faster delivery to match best-available delivery times by competitors
Use AI-powered personalisation and demand forecasting to retain customers and reduce waste
Build sustainable farming partnerships and use ethical credentials to defend premium pricing against discount competition

Developing profitable own-brands

The domination of markets by own-brands is not an inevitability, private label owners need to look over their shoulder, the brands they compete against are fighting back. MRM helps both original and own-brands succeed, building sales and strengthening their position against threats to their loyal customer base. Effective promotions, communicating the benefits of the product, the reason your customers grew to love your brand, can win market share. With a range of promotional services, from price promotions to acquire new customers, to loyalty and reward schemes strengthening customer retention, MRM help clients to compete and grow.

A proprietary IT platform, Lodestone, supports MRM clients to run successful sales promotions. By simplifying and automating the workflows of planning and executing campaigns, ideas are quickly brought to life. The modular structure of the system allows clients to personalise their promotions, while ensuring they are compliant with all data and competition regulations.

In addition to managing the heavy lifting of setting up and running promotions, the platform also integrates with our clients systems, reporting real time data tracking and measuring their promotion. Clients have total control over their promotion, while insights gained from clear, comprehensive data, inform structured decision making.