Private Label Demand Surges as Half of Global Consumers Shift Toward Store Brands According to a NielsenIQ study, 50% of global consumers are now purchasing more private label products than ever before.

In its Mid-Year Consumer Outlook: Guide to 2025, consumer intelligence company NielsenIQ (NIQ) reveals that Millennials and Gen Z shoppers are driving a significant shift in perception toward private label products.

Here are the top five trends shaping the private label landscape in 2025:

1. Rising Popularity Among Millennials and Gen Z

According to the NIQ survey, nearly twice as many Millennials (46%) and Gen Z consumers (46%) said they are willing to spend more on private label products compared to just 23% of Boomers.

With Gen Z’s spending power projected to soar to around $12 trillion (€11.6 trillion) by 2030, this demographic is becoming a primary target for both retailers and manufacturers.

2. Delivering Unique Value Propositions

Shoppers are increasingly finding unique value in the private label products they choose.

NIQ’s Retail Measurement Services data for Q2 2024 show a 5.6% year-over-year sales increase for private label brands. While the Middle East/Africa region (+34.3%) and Latin America (+14.2%) led in growth rates, global value share also expanded significantly.

3. Leveraging AI and Data Analytics

Private label brands are adopting advanced data analytics to better understand consumer preferences and predict market trends. This allows for more optimized product assortments and helps maintain a competitive edge.

Additionally, the use of AI and machine learning in supply chain management is enabling brands to deliver high-quality products at lower costs by streamlining operations and improving efficiency.

4. Redefining the Meaning of "Discount"

Consumers are now rethinking what “discount” really means, says Lauren Fernandes, VP of Global Thought Leadership at NIQ, noting that the playing field is increasingly level between national and private brands.

“Companies recognizing this democratization are gaining consumer dollars by offering more,” Fernandes explains. “Today’s consumers aren’t just intrigued by—but expect—a hybrid approach to value.”

“If you’re still wondering whether your customer expects quality, innovation, sustainability, availability, and more, the answer is yes to all of the above,” she adds.

5. Investing in the Omnichannel Experience

An increasing number of consumers are using mobile shopping platforms to search for products while shopping in-store.