January 28, 2026 – Investments in developing private labels are hitting the right stride at the right time. Perceptions of quality are improving among consumers and, as prices rise, retail brands offer consumers ways to manage inflation and household grocery expenses. However, improvements can be made to private labels. Retailers reliably deliver value but need to close the perception gap between private labels and brands in terms of quality, nutrition, health, variety, and novelty. Innova Market Insights examines global private label trends across regions and strategies to attract more consumers.
Navigating Inflation: Private Labels as a Strategic Value Driver
Inflation may have initially worsened due to the COVID-19 pandemic, but its effects have persisted and been amplified by global factors such as tariffs, war, and climate disasters. Already stretched household budgets continue to face pressure, keeping consumers focused on value. This creates an ideal opportunity for retailer brand innovation to strengthen or reinvest in private labels and compete in the private label vs consumer brands landscape. Retailers should adopt transparent pricing, openly communicate reformulations for cost and ingredient efficiencies, and use smart pack sizing.
Generational Needs: Value for Boomers vs. Novelty for Gen Z
While the proportion of consumers worldwide who feel their financial situation has improved or worsened over the past year remains stable, experiences differ sharply by generation. Generation Z and Millennials are more likely to feel better off than worse off, whereas Generation X and Boomers are more likely to feel worse off than better off. Private label market trends suggest that strategies should therefore balance value reassurance with aspirational appeal. Affordable products with verifiable quality will resonate with older generations, while new flavors and easy-to-carry packaging for on-the-go lifestyles will attract younger consumers.
Building Stronger Private Label Through Innovation and Differentiation
Private label vs consumer brands show that consumers perceive store brands as offering value and convenience but notice gaps in quality, nutrition, and variety. To compete, private label makers must improve quality, innovate in flavor and functionality, and highlight nutritional and sensory benefits without price hikes. Retailers must maintain a strong private label portfolio across categories and price points to prevent losing customer loyalty.
Private labels need to combine strong value with storytelling, transparency, and indulgence. This involves retailer brand innovation through continuous innovation, sensory product design, and a diversified portfolio offering good, better, and best options at affordable prices. Retailers should keep investing in product differentiation, premiumization, and marketing to position private labels as credible alternatives to brands.
Regional Overviews: Private Label Maturity in the Americas
Private labels hold a significant share in North America across dairy, bakery, fruits and vegetables, sauces, and seasonings. Greater opportunities may exist in ready meals, meat, snacks, desserts, and beverages due to easier and less costly entry. Retailers should concentrate on innovation in categories with low penetration and where brand loyalty is more fluid. Differentiated flavors, functional benefits, and sustainability messaging can serve as entry points. To succeed, retailers must balance affordability with premium cues, invest in packaging and marketing that convey quality, and develop tiered assortments that meet both value-driven and aspirational desires.
In Latin America, the private label market has a lot of potential for expansion across most categories, especially snacks, dairy, bakery, and beverages, where brands currently dominate. Private label market trends point to opportunities for retailers to accelerate growth by emphasizing affordability, local sourcing, and freshness, while building consumer trust through consistent quality and transparency.
Private Label Market: Europe
Private label market trends show that private label prevalence varies significantly across categories, but is common in fruit, vegetables, dairy, meat, fish, and eggs in Western Europe. In Eastern Europe, categories beyond fruit, vegetables, meat, fish, and eggs currently have a low private label share, giving ample opportunities for retailer brands to expand.
Retailers can tailor their premium private label strategies to regional category maturity. In Western Europe, where penetration in staple categories is already high, future growth will depend on retailer brand innovation through expanding into indulgent, plant-based, and premium convenience segments that align with changing lifestyle and health preferences. Conversely, Eastern European retailers have a broader growth runway by introducing entry- and mid-tier lines that build trust through consistent quality and affordability, gradually adding differentiated products to enhance perception and foster loyalty.
Emerging Opportunities: Asia Pacific Growth Runway
No category in Asia currently holds a private label market share of 20% or more, presenting a significant opportunity to educate consumers and win over still brand-loyal but increasingly value-conscious consumer behavior. Early opportunities include ready meals, functional beverages, and affordable health-oriented categories that appeal to urban middle-class consumers seeking balance. Success will depend on aligning innovation and marketing with local tastes, using digital engagement, and leveraging retailer ecosystems and convenient formats.
In Australasia, private label market trends show that private label holds over 20% of the market in fruit and vegetables, meat, fish and eggs, dairy, and ready meals. However, further category growth will require retailers to differentiate beyond price and scale. Dominated by a few full-line supermarket chains with multi-tiered private label architectures, expansion will rely on premiumization, sustainability storytelling, and functional innovation.
Private Label Market: Middle East and Africa
Private label products already hold a significant market share in Africa for ready meals, sauces, seasonings, and meat substitutes. Private label market trends indicate that other food and beverage categories may present better growth opportunities. Retailers must navigate substantial regional and economic differences and strengthen supply chains to ensure consistent product availability, especially in markets with underdeveloped logistics and cold-chain infrastructure. Growth will rely on offering competitively priced, high-quality staples alongside affordable indulgences that incorporate local flavors.
In the Middle East, there is potential for private label growth, especially as modern retail formats expand and younger, digitally savvy consumers become more receptive to store brands. Retailers can boost private label success by emphasizing trusted quality, local relevance, and clear value differentiation from brands. Given the region’s strong brand loyalty and emphasis on authenticity, transparency in sourcing and compliance with halal and regional dietary standards will be essential. To compete effectively, retailers should invest in premium private label strategies that reflect lifestyle aspirations, develop co-branded or influencer-endorsed lines to build credibility, and leverage online platforms for storytelling.
The Future of Retail Brands: Sustainability, Clean-Label, and Exclusivity
The global private label market is focusing on quality, exclusivity, and affordability. Retailers are expanding into natural, clean-label, and plant-based products enriched with nutrients like proteins, fibers, and vitamins, while cutting sugar, salt, and fat.
To differentiate and offer premiumization, product ranges will include bold flavors, chef-inspired gourmet items, and regional editions. Innovation will focus on circular and biodegradable packaging, responsibly sourced ingredients, and transparency on carbon footprints. These are supported by commitments to renewable energy, fair labor, animal welfare, and water conservation, positioning retailers as ethical and environmentally responsible leaders.
This article is based on Innova’s Private Label Trends – Global report. This report is available to purchase or with an Innova Reports subscription. Reach out to learn more.