June 30, 2025 – Innova Market Insights’ 360 Canada: Food & Private Label Trends report explores how Canadian store brands are evolving beyond value to compete on quality, freshness, and innovation across more categories. It analyzes product launches, consumer insights, and future opportunities in private label. Part of Innova’s 360 Category Reports series, this report offers a holistic view of key F&B categories—connecting global trends, market performance, brand strategies, consumer behavior, ingredient developments, and innovation to help companies make smarter, faster decisions.
Limited Market Share of Private Label in Canada
The main challenges facing private label in Canada are the limited market share and slower pace of innovation compared to other mature regions. With just 19% of retail sales and launches, private label products remain underdeveloped in categories where branded products dominate through quality, variety and innovation. Recent declines in launches further highlight the need for strategic focus to grow relevance and sustain momentum.
Perhaps one reason Canadian retail private label programs are sluggish is because of elevated food costs. Yet with increased at-home consumption, increased private label purchases, and no end in sight for food cost relief, compounded by the threats of tariffs, there may be no better time for brands to invest in programs that differentiate through quality cues and strategic pricing in-store.
Financial Concerns Top Consumer Concern for Canadians
The pressures of balancing standards of living with health and nutrition are formidable, suggesting that retailers and brands can do more to help Canadian consumers feel supported in trying to maintain control. 38% of Canadians say they will buy cheaper items to spend less on food and drink in 2025, teeing up not only store brands but also retailers to go on the offensive to support and win over consumers.
Canadian Consumers Seek Quality in Private Label
The core opportunity lies in accelerating affordable premiumization. Consumers increasingly associate private label with quality, especially when defined by freshness, nutrition, and functional benefits. Private label trends show that by combining purposeful innovation with strong shelf presence and retailer branding, private label can expand into new categories, compete with national brands and reinforce trust through both value and quality-led offerings.
Affordability, coupled with ongoing attention to functional benefits and quality, will transition store brands into traffic drivers. Significantly, more than half of Canadian consumers of any age agree they stick with a brand when it demonstrates quality. Therefore, value plus product quality is an important equation in the formulation and promotion of private label F&B.
Boomers and Generation X are Powering the Shift to Private Label
Millennials and Generation Z have come of age with the idea of private label food and drinks that offer more than just value. While Boomers and Generation X may be reactively economizing due to rising costs, younger adults may be less prone to changes because of price or already are avid private label consumers, requiring less change. Private label trends reveal that 31% of Canadian Boomers have increased their purchase of private label brands in the past year, with a 30% increase in Generation X.
Be Creative with Flavor
For decades, the notion of private label quality has been expanding to include creative culinary options that are changing brand dynamics. Perception of quality is a predictable loyalty builder, and just as it does with national brands, flavor creativity plays a growing role in quality cues, especially among influential Millennials and Generation X. More than half always look for new flavors from store brands. (They are most likely to be parents with kids at home, suggesting that trends they follow will be passed along, at least in early adulthood). As Generation Z gains more financial responsibility, they will adopt similar ways to explore cuisine and flavor economically for the whole family.
Focus on Frequently Purchased Categories
Increased innovation will build private label brands in Canada. Canadian private label innovation aligns with what’s already working: frequently purchased categories such as bakery, dairy and produce. As prices rise throughout the store, especially in perishables, helping Canadian consumers save throughout the store can happen through increased focus on innovation and promotions of underpenetrated but high-interest segments like snacks, beverages and indulgent products.
Go Beyond Low Price as USP
Retailers and their private label programs won’t necessarily win by default. Consumers’ first instinct is savings, not necessarily store brands, calling retailers to step in. Private label brands win almost purely on price, with 73% of Canadian consumers saying they’ve increased their purchase of private label products because they’re good value for money, but price won’t win the long game. While for the time being it may be essential to compete first on price and quality comparisons, to drive traffic and manage product shifts, it’s also a good time to grow consumer awareness of full lines, tiered offerings, and better-for-you positioning. Think of mix-and-match bundling incentive promotions, in-store merchandizing, and classic sampling programs. Promoting store brands is a first step, but bundling programs with recipe, cooking and meal planning tips that help consumers navigate tighter budgets can be impactful when building long-term connections.
What’s Next in Food and Private Label Trends in Canada?
Just as all industries in the US market will need to rethink strategies due to Trump’s tariffs, every Canadian brand has an opportunity here. Building consumer trust and loyalty matters, perhaps more than ever, and the silver lining to the otherwise dark cloud is that brands have multiple avenues open to them as they attempt to foster goodwill with Canadian consumers. 52% of Canadian consumers cited putting profits over consumers’ benefits as their main reason for losing trust in major brands; now is the time to prove consumers wrong by actively working for their interests.
Retailers will likely continue to focus on ingredients and promotion to enhance better-for-you products and pricing strategies. Retailers can further expand into functional, clean label, and organic claims to reinforce quality while maintaining affordability through innovations like sugar substitutes and gut health benefits. Convenience and novelty will also boost consumer appeal, with growth in single-serve, on-the-go formats, and bolder flavors targeting younger consumers. Emphasizing sustainability and ethical sourcing using eco-friendly packaging and responsible branding will strengthen storytelling and build consumer loyalty.
This article is based on Innova’s Private Label Trends in Food & Beverage in Canada report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more
