Concerns about inflation and Private Label growth
Whilst Private Label always does well in hard times, brands can still win
Inflation drives Private Label share growth
Private Label growth is stimulated by inflation and uncertainty. Shares are typically sustained afterwards – 91% of categories that increased Private Label share from 2021 to 2023 still held a higher share in 2025.
50% of Private Label gains due to discounters
Half the Private Label share gain since 2012 in Europe is due to discounters. Discounter growth has strongly relied on increases in store count – e.g., in the UK, their store numbers are 55% higher than in 2016 – physical presence not only matters for brands, but for stores as well.
.. but brands can still win
During times of uncertainty and inflation, brands can and do still grow – buyer numbers remain the key to growth supported by innovation and increased physical presence. Private Label growth affects the odds of winning, but does not prevent it: brand share winners compete in categories where Private Label grew by 2 share points over five years, while categories of brand share losers saw Private Label grow by 3 share points.
Watch the 3rd video of our Consumer Pulse Crisis Video series
Professor Jan-Benedict Steenkamp joins Richard Herbert to unpack the rise of Private Label and why it sticks.
