Private label is no longer just a value play — it’s a quality play, and that’s forcing brands to rethink what earns a shopper’s loyalty.

New research from IGD urges manufacturers to stop leaning on heritage and recognition, and start proving their worth at every stage of the shopper journey.

The warning comes as IGD’s August data showed private label growing 52% faster globally than manufacturer brands in 2025, with own-label now accounting for more than 40% of grocery sales in several major European markets — including 44.3% in the UK and 46.9% in Germany.

Justifying the premium

According to IGD, brands can no longer rely on heritage, recognition, or perceptions of superior quality to justify premium price points. As private label narrows the gap on both fronts, the report argues that manufacturers need modern ways to activate three 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 still tips the scales

Trust remains the single strongest reason shoppers choose branded products, particularly in categories where efficacy, reliability and reassurance carry weight. 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) — categories where familiarity and consistent performance matter most to shoppers.

But the report is clear that trust alone won’t guarantee future growth. As retailers keep strengthening their own-brand ranges and shopper perceptions of private label quality continue to improve, that trust advantage is no longer automatic.

Three levers, activated differently

IGD’s three drivers of long-term brand success — visibility, innovation and emotional connection — aren’t new. What’s changed, the report argues, is how brands need to activate them.

Visibility now means staying consistently present across a growing number of online and offline touchpoints, showing up at key decision-making moments through retail media, in-store execution, social media or partnerships.

Innovation is no longer confined to new product launches. IGD points to packaging, reformulation, activations, collaborations and new usage occasions as opportunities for brands to create value that’s harder for private label to replicate.

Emotional connection means moving beyond transactional relationships toward experiences rooted in purpose, storytelling, convenience and cultural relevance — the kind of deeper loyalty that outlasts product performance or price comparisons.

Sibson added: “Brands have spent decades building trust. Now they must continually earn shopper preference to keep it.”

What It Means

IGD’s message redirects effort toward the things private label still struggles to replicate at scale: consistent presence across a fragmented journey, innovation beyond the product itself, and genuine emotional resonance. For brands willing to work harder at all three, that’s a more defensible growth path than trying to out-discount the own-label aisle.

A free sample of IGD’s report, How brands drive growth in a value-driven market, is available on the IGD website.