Private Label Market Insights

#Brands vs. #PrivateLabels: The battle between brands and private labels has gained momentum globally, including in Lebanon. Retailers are constantly navigating between leveraging the established strength of brands and building their own private labels to cater to changing consumer demands. The growth of private labels is not a random occurrence; it reflects a strategic shift by retailers to stay competitive. Here’s why: 1. Trust in Retailers: Customers are increasingly confident in retailer-owned labels, associating them with quality & reliability. 2. Affordable Quality: Private labels strike the perfect balance between reasonable pricing & satisfactory quality, making them appealing to cost-conscious consumers. 3. Customization for Local Needs: Retailers can design private-label products tailored specifically for the Lebanese market, addressing cultural & regional preferences better than global brands. A Global Phenomenon. Globally, private labels have gained traction in mature retail markets like Europe and North America due to strong retailer brands and economic pressures. In Lebanon, however, this trend is still emerging due to a combination of factors: Emerging Retail Sector: Organized retail is still growing, providing ample opportunities for private labels to flourish. Consumer Behavior: Lebanese consumers, especially new generations are highly price-sensitive and often prioritize value for money over brand loyalty. Retailer Reputation: Established retail chains like NETTO & CASINO have built trust, encouraging consumers to try private labels under their name. While the drivers are similar—affordability, trust, accessibility—the scale and impact in Lebanon are still evolving compared to global markets. Pros and Cons: Brands vs. Private Labels Branded Products Pros: Built-in trust and recognition. Marketing and promotional support. Reliable product quality. Cons: Higher costs for consumers. Lower retailer margins. Private Labels Pros: Higher profit margins for retailers. Tailored to local needs and preferences. Drives customer loyalty to the retailer. Cons: a.Requires significant investment in production and marketing. b.Quality control challenges. Key Takeaways for Retailers Build Trust: Strengthen private-label credibility by consistently delivering value and quality. Diversify Offerings: Maintain a balanced mix of branded products and private labels to cater to all customer segments. Leverage Market Insights: Understand consumer preferences to design private-label products that resonate with local audiences. Focus on Value: Highlight affordability and reasonable quality to appeal to Lebanon’s price-conscious consumers. Private labels are here to stay, and the retailers who strategically balance this shift will lead the next wave of retail success. #RetailTrends #BrandsVsPrivateLabels #PrivateLabelGrowth #ConsumerBehavior #FMCG #RetailManagement

In 2026, some of the sharpest FMCG operators in America will be leading private-label lines you don’t even notice on shelf. And that’s exactly the point. Private label has quietly entered its 2.0 phase. Shopify and ParallelDots both flag accelerating momentum, not just in volume, but in capability. These are no longer cheap substitutes. They’re data-led, margin-smart, fast to iterate, and increasingly brand-savvy. WARC’s 2026 outlook reinforces what retailers already know: consumer spending is polarising. Value and premium are growing at the same time, and private label sits right in the middle, close to the consumer, close to the data, and close to the margin. What’s interesting to me is the talent flow behind this shift. I’m seeing senior commercial, supply chain, and general management leaders leave big FMCG companies to take roles inside retailer-owned brands and high-growth challengers. Not because they couldn’t progress where they were, but because these environments offer something legacy organisations struggle to replicate: speed, ownership, and real decision power. This creates a quiet risk for established FMCG players. When some of your most operationally sharp leaders exit for private label or challengers, succession plans start to thin in ways org charts don’t immediately reveal. Private label growth isn’t just a competitive dynamic. It’s a leadership one. If you’re sitting in a legacy FMCG business, the real question is this: Are you creating roles that keep your best operators stretched and invested, or are retailers doing that job for you? I’d love to hear what others are seeing. Are private label and challenger brands already reshaping your leadership bench, or is this still flying under the radar? #privatelabel #fmcg #cpg

📣 Kirkland at 30: A Masterclass in Private Label Success 📣 Private labels in the U.S. have long lagged behind Europe—today, they hold just 20% market share, compared to 41% in Western Europe. Many argue that Americans simply love national brands too much for private labels to thrive. But Costco’s Kirkland Signature proves otherwise. Launched 30 years ago, Kirkland now generates $86 billion in annual sales—a full one-third of Costco’s revenue. That’s not just success; that’s dominance. So, what’s the Kirkland playbook? 🔑 Quality first, price second. Shoppers love low prices—but not at the expense of quality. Kirkland earned trust by never compromising. 🔑 One brand, many categories. Instead of scattering resources across dozens of labels, Costco built one strong brand. When shoppers trust Kirkland for apparel, they’re more likely to trust it for batteries, detergent, or wine. As we celebrate Kirkland’s 30th anniversary, the lesson is clear: private labels can succeed in America. The real winners? Cash-strapped, inflation-weary shoppers. 👉 What do you think—should more U.S. retailers double down on building strong private labels? If you enjoyed this, share it with others and follow me, Jan-Benedict Steenkamp, for more writing.

Private brands are nothing new for Macy's. The chain has had them for years. Indeed, private brands made up around 15% of sales in 2023. There are advantages to having own brands. They provide differentiation and uniqueness, give more control, can enhance margins, and allow customer needs to be addressed. The problem for Macy’s, at least over the past 10 or so years, is that their private brands became stale. They lost their sharpness and, in a category like womenswear, they merged into one. From the customer perspective, it was very difficult to see where one brand ended and another one began. This defeats the purpose. Every sub brand should have its own personality and identity, and it should play a specific role in a retailer’s assortment. This should be evident on the shop floor to prevent everything coming across as a sea of merchandise. Thankfully, Macy’s is pulling back from past missteps. It started with On 34th, the brand it launched in 2023. As soon as it went into stores, the brand looked and felt different. It was well received, mainly because it had been designed with reference to customers and their needs. The good thing is that Macy’s has learnt from this lesson. All of their brands are now being refreshed and updated. This is starting to come through on the shop floor where you can see personality returning. The upcoming fall collections will see more retooling and more distinctiveness injected into each label - and this work has been informed by listening to shoppers. As I always say, there is a lot more work to do for Macy's. But every journey of reinvention is made up of many steps. When you see a retailer taking those steps, it's right to applaud it. #retail #retailnews #Macys #departmentstores #apparel #fashion

The other night, I searched for rajma on Zepto. The top suggestion wasn’t Rajdhani, Tata Sampann, or any brand I knew. It was something called Daily Goods. I thought, “Yeh kaunsa naya brand hai?” Googled it. Turns out, it’s Zepto’s own label. That’s when it hit me. These apps aren’t just delivering brands anymore. They’re building their own. 📌 Swiggy’s "Noice" launched just months ago and already captured: → 3.4% of wafer sales on their platform → 1.9% of biscuit sales → 200+ SKUs across 13 categories → Sourcing from 40+ small-scale manufacturers 📌 Zepto is expanding fast with: → chyll (ice cubes, juices) → aaha! (snacks, cereals, batters) → Relish generated Rs 40 crore monthly sales; aiming for Rs 1,000 crore annual revenue by Mar 2026. 📌 BigBasket has already cracked the code: → ₹4,000 crore annual private label revenue → 35-40% of overall revenue share → Strong in-house brands like BB Royal, BB Popular, Fresho The maths is simple: Private labels = 25–45% margins Branded products = 15–25% margins By cutting the middlemen and pricing products as ‘fresh,’ these platforms make it easier for customers to pick them. Aur jab 10-minute delivery pe bharosa ho jaata hai, toh quality pe bhi automatically trust build ho jaata hai. In just 2 years, private labels jumped from 1–2% to 6–8% of Q-commerce sales. With perishables, that number could touch 10–15%. The strategy is: Start with essentials → Build trust → Expand into snacks → Dominate categories. Today, the app itself is the brand. And that’s the real shift traditional FMCG companies need to pay attention to. Quick thought: when you order from Blinkit or Zepto, do you still type brand names, or just pick what looks good?

Store Brands -From Bargain Bin to Brand Power- Store-brands began as uninspiring knockoffs and cheaper versions but today’s private labels are becoming power players in retail. The United Kingdom is a big store brands market where they are mature and trusted with a market share of over 45% with a range from value to premium labels. Every retailer :Tesco, Aldi, Lidl, Sainsbury’s, Waitrose leads with own offerings. One can see the growth in organic, vegan, and sustainable options In the U.S., Walmart recently launched Bettergoods, a premium food line. Ahold Delhaize is targeting a significant increase in private-label sales, and range includes organic and gourmet lines, elevating store brands well beyond simple value alternatives. Private labels offer retailers better margins and customer stickiness. Brands like Costco’s Kirkland Signature, Aldi’s exclusive lines, and Trader Joe’s portfolio have gained almost cult-like loyalty. Retailers that focus heavily on private labels are gaining share from traditional supermarkets. Online price comparisons and rapid delivery have changed how consumers shop. Many store-brand products are actually produced by national manufacturers, creating an increasingly complex relationship between retailers and suppliers. In recent years, inflation fatigue is now shifting momentum back to retailers. Grocery prices are 25%+ higher than pre Covid , and shoppers are buying more private-label goods to cut costs. Retailers are also moving faster with innovation. While national brands were slower to respond, private labels have leaned into unique flavors, sustainability, and premium packaging. Some chains introduce hundreds of seasonal or limited-run items per month, with social media feedback influencing which products stay. In the United States, fast growth and rebranding is being seen. The market share is around 20%, and steadily increasing. Millennials and Gen Z drive adoption due to lower brand loyalty and higher price sensitivity. Given the wealth of data that store chains have , AI and data analytics help customize offerings India ,despite price sensitivity has a less than 10% share with a focus on groceries, snacks, personal care. Even though store brands are priced anywhere from 10 to 30% lower on average, they lack the trust and premium positioning. Store brands are no longer playing catch-up. They’re setting new standards in taste, pricing, and innovation. What was once the cheaper choice is fast becoming the smarter one. #RetailTrends #PrivateLabel #StoreBrands #ConsumerBehavior #RetailInnovation #BrandStrategy #FMCG #UKRetail #USRetail #IndiaRetail #RetailTransformation

Kraft Heinz has cut its sales outlook. The business now expects sales to fall by about 3%. Shoppers are watching spend and choosing private label because it feels good enough, sometimes better, for less money. In sauces, ready meals and snacks, price rises are tougher to hold when products look ultra-processed or light on nutrition. This does not feel temporary. People are paying more attention to what is in their food and whether it is worth the price. Retailers are reformulating and pushing their own ranges. HFSS rules, packaging changes and climate pressure sit in the background and shape decisions. The old playbook of pushing familiar products and protecting margin still works in some parts of the aisle. It just does not stretch as far as it used to. Where this points? (My quick view) 1) Food companies will need to show real improvement in health and quality, and prove progress on supply and emissions. People want to see it, not hear it in marketing. 2) Investment will need to move from defending old products to improving everyday ones and tightening supply resilience. The shift will take time. Some teams are already moving capital and reformulation effort. Others are waiting for habits to return and price power to come back. Only one of those looks like a safer bet in the long run.

Simplicity Speaks Louder. "Value packaging." Two words that once screamed "cheap." Now they shape how people shop. With living costs biting hard, shoppers want quality without the premium tag. Private labels, once treated as the budget fallback, have become the option that makes sense. The products deliver, the savings are real, and switching has become a habit rather than a compromise. Packaging steers a lot of that behaviour. "Good, better, best" ranges help people navigate prices, but the "good" tier is still the anchor. Bold type on plain backgrounds, clear layouts, and nothing to decode. It signals value before the shopper even looks at the price. People instinctively link ornate packs with higher cost. For value lines, simplicity does the work. No frills or fuss. Make it too decorative and the signal falls apart. Tesco Value's blue and white stripes and Sainsbury's Basics built loyal followings with packs that never hid their intentions. Aldi took a completely different route and used full-colour packs that stood shoulder to shoulder with big brands. Lidl followed. Together they hold 17 percent of the UK grocery market, proof of how much confidence shoppers now place in private labels. Shelf design has moved on again. Many value packs today look more like something from an indie deli than a bargain aisle. The pattern repeats beyond the UK. Trader Joe's in the US turned own-label charm into a cult. Aldi Nord's stripped-back packs stock German cupboards. Mercadona's private label in Spain routinely outperforms national brands. The rise is broad and consistent. Some retailers go even further. Penny in Germany has printed prices directly onto packs in short stunts, turning everyday goods into moving billboards for low costs. Simplicity earns trust. Think of those 26p cornflakes. The box spells it out with one line: "No fancy packaging, still a great breakfast." That kind of honesty travels well, especially when wallets are tight. Big brands are feeling the pressure. Kantar reported that private labels grew three times faster than branded goods in 2023. Price gaps play a part, but the way value is presented on the pack is doing a lot of the persuasion. Value packaging is not just a cost message. It has become a signal of transparency in a crowded market. Less can carry more meaning when it is done with intent. Do big brands still pack enough punch to win shoppers back?

CPG Brand Marketing Leaders, As I try to find instructive lessons from the rollercoaster of the last week, my first "duh" is that across the political spectrum we were all emphatically reminded of inflation’s dominant impact on voter/consumer decisions at the grocery shelf. Marketers know price is only part of the value equation and can’t breed loyalty alone. Nowhere is this more evident than with the recent phenomenal success of Private Label food brands, now trustworthy, sustainable, “real” brands in their own rights. In H1 2024, overall PL dollar share topped 20% and grew at 2x the rate of national brands. The WHY is pretty obvious. But a recent webinar by Hunter Thurman of Alpha-Diver dug into HOW private retailer brands are garnering enviable loyalty. Here are 3 ways they’re crushing it. 𝟭. 𝗖𝘂𝗿𝗮𝘁𝗶𝗻𝗴 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗕𝗿𝗮𝗻𝗱 𝗣𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼𝘀   Mass /Grocery retailers are simultaneously investing in multiple brands to address the gamut of shopper needs at multiple price tiers. Target has been successfully activating this strategy for years with their trifecta: 🍪𝘎𝘰𝘰𝘥 & 𝘎𝘢𝘵𝘩𝘦𝘳: the $4B food/bev brand of 2,500+ items touts quality ingredients, culinary inspired flavors, and clean labels. G&G shoppers are highly valuable, making 4X the # trips with 8X higher spend per trip vs Tgt’s typical grocery shopper. 🍨 𝘍𝘢𝘷𝘰𝘳𝘪𝘵𝘦 𝘋𝘢𝘺: the "fun sibling" brand is Target’s celebration play, with snacks/treats that “make life’s little moments of indulgence even sweeter,” from ice cream and cake decorations to mocktails and mixers. Don't recent days give us license to make every day a Favorite Day…Mixer Monday, anyone?! 🥫𝘔𝘢𝘳𝘬𝘦𝘵 𝘗𝘢𝘯𝘵𝘳𝘺: the veteran no-nonsense, family friendly OPP brand priced 10- 30% below branded equivalents has long been meeting the "economy stupid" moment. 𝟮.𝗢𝘂𝘁𝗽𝗮𝗰𝗶𝗻𝗴 𝗶𝗻 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 & 𝗣𝗿𝗲𝗺𝗶𝘂𝗺𝗶𝘇𝗮𝘁𝗶𝗼𝗻 Another brand defying the PL as Knockoff paradigm is Walmart’s bettergoods, their biggest owned brand launch in 20 years. The 300+ line of premium quality, trend-forward foods, most <$5, tout plant-based, gluten free and “made without” claims. It’s proven incremental to the OG Great Value brand, capturing trips from outlets like Trader Joes. 𝟯. 𝗙𝗿𝗼𝗺 𝗧𝗿𝗮𝗱𝗶𝗻𝗴 𝗗𝗼𝘄𝗻 𝘁𝗼 𝗧𝗿𝗮𝗱𝗶𝗻𝗴 𝗢𝘂𝘁  Alpha Diver shared their recent buyer persona/decision making work showing Price is NOT the key driver of Value, but rather Reliability, fun Experiences and removing the work of Price Shopping. Amazon Aplenty (launched in 2021 in response to Favorite Day) offer products “crafted to be craveworthy,” and was designed “not as a flanker to advertised brands but as a competitor to them.” Smart stuff, huh? While upending some classic marketing principles, these examples will make me rethink my autopilot shopping list to include "PL" choices. How have your shopping habits changed to incorporate retailer owned brands?  #insights #foodandbeverage #brandgrowth

If you are waiting for Private Label to slow down, stop waiting. The new Q3 numbers from PLMA and NielsenIQ just came out. The data is clear: The "temporary" shift to store brands is now permanent behavior. The European average has hit 38.7% (+0.28% vs last year). But the averages hide the real story. Look at the leaders. The Powerhouses: Switzerland: 52.3% (More than half the market. Let that sink in.) Portugal: 48% Spain: 47.1% Netherlands: 46.9% My analysis: Spain is the one to watch. They are up +1.1% in a single year. That is aggressive growth. We are seeing strong momentum in categories National Brands used to own in Europe - Health Care, Snacks, and Paper Products. The consumer isn't just looking for a deal anymore. They are looking for value. And retailers like Mercadona and Albert Heijn are giving them the same quality than the A-brands. My take: If I was a brand manager for a big multinational CPG right now, I would be nervous. The "middle" is disappearing. You either need to be the premium innovation leader, or you lose to the retailer's own brand. 12 out of 17 markets grew their Private Label share. You cannot just rely on "brand equity" to save you in 2026. Question: Spain is closing in on 50% share. Do you think we will see them overtake Switzerland by 2030? #PrivateLabel #FMCG #Retail #MarketTrends