Brands urged to refocus strategy as private label surge redefines loyalty
Food and drink brands are being urged to sharpen their strategies and reconnect with shoppers as new research from IGD reveals the mounting pressures facing branded products in today’s fragmented retail landscape.
The report, titled How Brands Can Drive Growth in Challenging Times, highlights a widening price gap between branded and private label goods — now averaging 86% — and a significant shift in consumer behaviour, with 53% of global shoppers buying more own-label products than ever before.
As private labels improve in design and functionality, the distinction between branded and budget options is becoming increasingly blurred. This, coupled with diluted share of voice and rising category switching, means brands must work harder to maintain visibility and drive volume.
Despite these challenges, IGD says brands still hold powerful advantages. “The battle for shopper choice is fiercely competitive, but brands are fighting from a position of strength,” said Michaela Jay, insights manager at IGD. “It’s by playing to their strengths that brands can secure lasting victory.”
The report identifies three key levers for brand success:
- Visibility: brands must show up where shopper attention is highest — whether in-store, online, or through targeted media.
- Innovation: with shopper needs evolving rapidly, brands must stay ahead of local and global trends, adapting products and ranges to meet new demands.
- Emotive connection: moving beyond transactional relationships, brands should foster emotional affinity through storytelling, values, and shared experiences.
Jay added: “Execution is everything. Whether you’re a challenger brand, heritage player or retailer, activating these levers with purpose is what cuts through the noise.”
The findings come at a time when food and drink brands are navigating inflationary pressures, changing consumption habits, and increased competition from agile private label players. IGD’s report offers a roadmap for brands to remain relevant, trusted, and chosen.
For more insights, visit IGD’s full report online.
