A new study by consultancy Simon-Kucher confirms that consumers in key markets around the world are rethinking how they shop, prioritising price and higher quality, while increasingly turning to private label products.
Based on a survey of 8,000 respondents across seven countries, the findings from the Shopper Study 2025 showcase a clear shift towards private labels, driven by affordability and evolving priorities.
“The enduring appeal of private labels underscores the changing dynamics of consumer behaviour,” 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 recognise and act on this shift will be better positioned to capture and retain customer loyalty.”
Key Findings from the report:
- Private label dominance: More than half (53% ) of consumers prefer private labels, with the highest share in Spain (64%), France (60%), and the Netherlands (58%). The US (42%) and Sweden (47%) show the lowest adoption, highlighting growth potential in these markets.
- Price remains paramount: Between 55 and 66% of respondents across all countries state that price has become even more important, particularly in the UK, US, and Spain.
- Rising quality awareness: 34% of respondents place an increasing emphasis on quality, with notable increases in the US (45%) and Germany (37%).
- Sustainability gains traction: Around 28% of shoppers prioritise sustainability, particularly younger consumers. In France and the Netherlands, a significant share of respondents (23% and 26%, respectively) indicate that sustainability holds less importance for them now compared to the beginning of 2024.
- Category growth: The share of respondents buying more private label products increased across nearly all product categories and markets, with the biggest growth in dairy, dry products, frozen and fresh produce.
- Category exceptions: Alcoholic beverages and baby products saw declines in private label share.
- Future Trends: If prices rise, more than 50% of respondents would turn even more to private labels, particularly in the Netherlands (58%), Spain (56%), and the UK (55%).
- If prices remain stable, nearly 15% of respondents across all countries would increase their purchase of private label products on average.
- If prices drop, 54% will continue their current behaviour. Among 18-24-year-olds, 17% will buy more private labels, prioritising quality and sustainability over price.
“The days of private labels being viewed solely as budget options are over,” commented Martin Crépy, Senior Partner at Simon-Kucher.
“These private labels now represent a sophisticated strategy to meet the modern shopper’s expectations for both affordability and product quality.”
NAM Implications:
- The key issue re moves to private label as a tolerable alternative….
- …is the extent to which consumers find the switch not as much of a compromise as anticipated.
- Reflected in the cost of rebuilding brand loyalty.
- This comprehensive report will repay careful analysis and inhouse application…
