Global consumers switch to private labels amid price sensitivity

Global consumers, driven by price sensitivity, have sharply increased their purchases of private label products, according to Simon-Kucher’s Shopper Study 2025. The sales and marketing consultancy polled 8,000 shoppers in the US and Western Europe in December 2024.

Between 55% and 66% of respondents said that price has become even more important. Significant inflation since 2020 has pressured consumers to make tough choices, including shifting away from premium brands.

Respondents said they are buying more private label products (store brands such as Kirkland or Great Value) across nearly all categories, with the largest growth in dairy, dry products, and frozen and fresh produce.

The two exceptions are alcoholic beverages and baby products, which saw declines in private label share.

If prices were to rise further (a present reality with tariff-centric trade policy of the Trump administration), then over half of respondents would turn even more to private labels. If prices remain stable, 15% of respondents would increase their private label purchases.

More than half of consumers (53%) prefer private labels, with the highest shares in Spain (64%) and France (60%). The US had the lowest share (42%), highlighting growth potential in the market.

“The enduring appeal of private labels underscores the changing dynamics of consumer behavior,” said Alexander Bilsing, partner at Simon-Kucher. “Price sensitivity remains the top factor for shoppers, but quality and sustainability are becoming increasingly important. Retailers that recognize and act on this shift will be better positioned to capture and retain customer loyalty.”

Thirty-four percent of respondents said they place an increasing emphasis on quality, while 28% of shoppers said they prioritize sustainability.