TheQuietTakeover

ofPrivateLabel

Introduction

Theretailworldisatacrossroads.Consumersarechanging.Economicpressuresaremounting.Legacyassumptionsaboutnationalbrandsdrivingloyaltynolongerhold.Privatelabelofferings,onceseenaslower-tier,areemergingasstrategic

assets.

Theeconomyispushingshopperstorethinkeverydollar.Tariffs,inflation,andgeneraleconomicuneaseareforcingevenhigh-incomeconsumerstobecomemorevalue-conscious.

AccordingtothePrivateLabelManufacturersAssociation,privatelabelsalesrosebynearly4%lastyeartoreacharecord$271billion.Whileunitsalesofstore

brandsgrewmodestly,just2%since2021,nationalbrandunitsalesfellbyalmost

7%overthesameperiod.Thereason?Privatelabelproductsnotonlymeetevolvingconsumerpreferencesbutalsodeliver25-30%highergrossmarginsthantheir

nationalbrandcounterparts,makingthemastrategicwinforbothshoppersandretailers.

Inatimewhenpromotionsoftenerodeprofitsandsupplychainsarevolatile,privatelabelgivesretailersalevertoregaincontrol.Moresales.Highermargins.Strongerbrandloyalty.

Traditionally,retailersreliedonnationalbrandstodrawtraffic.Today,consumers

aren'tjustopentoalternatives—theyareactivelyseekingthem.Privatelabelgivesretailersthepowertocontroltheirdestiny.Retailerswhoinvestboldlyinprivate

labeltodaywillpositionthemselvesforgreatermargin,deepercustomerloyalty,andmarketresiliencetomorrow.Thetimetoactisnow.

們FRSTNSGHT

TheQuietTakeoverofPrivateLabel

2

)FRSTNSGHT

TheQuietTakeoverofPrivateLabel3

KeyHighlights

45%

BrandLoyaltyIsBreaking

45%ofconsumerssaythey’ve

permanentlyswitchedfroma

nationalbrandtoaprivate

labelwhentheproductmetor

exceededexpectations.Once

shoppersmaketheswitch,

theyrarelygoback—making

privatelabelnotjustavalue

alternative,butaloyaltydriver.

84%

TrustinPrivateLabelHasSurged

84%ofconsumerstrustthe

qualityofstore-brandproducts

asmuchormorethannational

brands.Thattrustiseven

strongeramongaffluent

shoppers,with61%ofhigh-

incomeconsumerssayingthey

truststorebrandsmorethan

namebrands.

44%

DupeCultureIsFuelingTrial

44%ofconsumers—and70%

ofthoseearning$150k+—say

they’remorelikelytotry

privatelabelifit’smarketedas

adupeofahigh-endproduct.

Smartimitationhasbecomea

badgeofsavvyshopping,

especiallyamongyoungerand

wealthiershoppers.

56%

PrivateLabelDrivesEverydaySpend

56%ofconsumersregularly

purchaseprivatelabelgrocery

items,and38%buystore-

brandhouseholdcleaning

supplies.Essentialsarethe

beachheadforbroader

expansion—oncetrustisbuilt

indaily-useitems,itopensthe

doorforpremiumcategory

growth.

)FRSTNSGHT

TheQuietTakeoverofPrivateLabel4

LoyaltytoBrandsIsEroding

Nearlyhalfofallshopperssaythey’vepermanently

switchedfromanationalbrandtoaprivatelabelwhentheproductmetorexceededexpectations.

“Haveyoueverswitchedfromanationalbrandtoaprivate-labelproductandcontinuedpurchasingit?”

45%Yes

19%

Notsure

36%No

Source:FirstInsight(April2025)

Retailershaveagoldenopportunity:onceaconsumermakesthe

switchandfeelssatisfied,theyrarelygoback.Privatelabelisn’t

justacheaperoption—it’sbecomingthebetteroption.

)FRSTNSGHT

TheQuietTakeoverofPrivateLabel5

TrustinStoreBrandsIsSurging

Theoldstigmaaroundprivatelabelbeing“cheap”or

“inferior”isdisappearingfast.Infact,84%ofconsumerssaytheynowtrustthequalityofstore-brandproductsmoreorthesameasnationalbrands.Consumersarerecognizing

Howwouldyourateyouroveralltrustinthequalityof

store-brandgenericproductscomparedtonationalbrands?

ChoicesPercentage

18%

19%

47%

Slightlyhighertrust

Slightlylowertrust

Muchhighertrust

11%

4%

Muchlowertrust

Aboutthesame

Source:FirstInsight(April2025)

thatsmartretailerscandeliverqualityatabetterprice.

61%ofconsumersearning$150k+annuallysaytheynowtrustthequalityofstore-brandproductsOVERnational

brands.

Smartbranding,smartpositioning,andstorytellingturntrustintoadvocacy.

)FRSTNSGHT

TheQuietTakeoverofPrivateLabel6

PrivateLabelsAreSheddingTheirStigma

77%

ofconsumersaren’tconcernedabouthowthey'reperceived

“Areyouworriedaboutbeingperceivednegativelyforbuyingprivate-labelproducts(e.g.,familyorfriendsnoticingwhentheyvisityourhome)?”

forbuyingprivatelabelproducts.

IncomeLevel

Privatelabelsarebeingseenasasmart,value-drivenchoice,notacheapcompromise.

However,higher-incomeconsumersareslightlymoresensitivetoperceptions.

Fortheseshoppers,privatelabelbranding,design,andstorytellingmuststillsignalquality,sophistication,andprideofownership.

Stigmaisnolongertheprimaryhurdle.Today’schallengeiswinningthehigh-valueconsumer’sheartanddoingitthroughbrandingandpositioningthatmakesprivatelabelfeelaspirational.

LowIncomeUpto$50,000

17%

83%

HighIncome$150,000+

MediumIncome

$51,000-$149,000

44%56%

●Yes●No

27%

73%

Source:FirstInsight(April2025)

)FRSTNSGHT

TheQuietTakeoverofPrivateLabel7

MostConsumersDon’tRealizeThey'reBuyingStoreBrands

ChoicesPercentage

Yes

“Doyourealizewhenyouarepurchasingaprivate-label/store-ownedbrand”

Idon’tknow

71%

19%

10%

No

Source:FirstInsight(April2025)

71%ofpeoplesaidtheyknowwhentheyarepurchasingaprivatelabelbrand,yet

ofconsumerscouldn’tcorrectlyidentifytheprivatelabelproduct,whenshownside-by-sideimagesonaverage.

72%

)FRSTNSGHT

TheQuietTakeoverofPrivateLabel8

PackagingandBrandingMaskthe

PrivateLabelIdentity

52%

Influencedbypackaging,

marketingorpromotions.

Packagingisn'teverything—butitopensthedoor.

Thatmeansbranding,packaging,andpositioningcancompletelyeliminateanystigmaorhesitation.

It’saboutmakingprivatelabelfeelliketheobvious,quality-firstchoice—withouttheconsumerevenrealizingit's“privatelabel."

)FRSTNSGHT

Source:FirstInsight(April2025)

TheQuietTakeoverofPrivateLabel

9

“Whattypesofprivate-labelproductsdoyoucommonlypurchase?(Selectallthatapply)”

ChoicesPercentage

Grocery/Food&Beverages

PrivateLabelsWinin

EverydayEssentials

Consumersarehighlyengagedwithprivate

labelingrocery,householdcleaning,clothing&apparel,andpersonalcare&beauty

categories.

Essentialsdriverepeatpurchases—andoncetrustisearnedinthese“everydaymoments,”it'seasiertoexpandintoothercategories.

56%

HouseholdCleaningSupplies

38%

Clothing&Apparel

34%

PersonalCare&Beauty

33%

Health&Wellness

28%

PetSupplies

24%

HomeGoods/Furniture

19%

Office&Stationary

18%

HomeImprovement/Hardware

16%

Electronics&Accessories

14%

DupesAretheNewLoyaltyDrivers

“Whatwouldmakeyoumorelikelytopurchaseaprivate-labelproduct?(Selectallthatapply)”

ChoicesPercentage

44%

24%

24%

21%

13%

13%

Ifitwasanaffordabledupeofahigh-endproduct

Ifithadinfluencer/celebrityendorsements

Ifithadapremium/luxuryfeel

Ifithasatrend-drivendesigns

Ifitwasorganic/sustainable

NoneoftheAbove

44%ofallconsumersandastaggering70%ofhigh-incomeshoppers

($150k+)saidtheyarelikelytotryprivatelabelifit’spositionedasadupeofahigh-endbrand.

“Haveyouevertriedaprivate-labelproductbecauseitwasadupeofaname-brandproduct?“

MediumIncome

$51,000-$149,000

HighIncome$150,000+

LowIncomeUpto$50,000

IncomeLevel

30%

●

Yes

No

47%

53%

70%

41%

59%

Source:FirstInsight(April2025)

Source:FirstInsight(April2025)

FRTNGHT

TheQuietTakeoverofPrivateLabel10

們FRSTNSGHT

TheQuietTakeoverofPrivateLabel11

PrivateLabelsEarnWord-of-MouthLoyalty

“Howoftendoyourecommendprivate-labelproductstofriendsandfamily?”

ChoicesPercentage

Always

12%

Often

17%

Sometimes

37%

Rarely

14%

Never

21%

Source:FirstInsight(April2025)

66%ofconsumerssaytheyrecommendprivatelabel

productstofriendsandfamily.

Positiveword-of-mouthacceleratesadoptionandnormalizes

privatelabelpurchasesacrossallincomelevelsandgenerations.

Whenconsumersrecommendyourprivatelabel,theyaren’tjustsatisfied—they’reproud.Retailerswhocreatehigh-quality

privatelabelsaren’tjustwinningsales;they’rebuildingbrandambassadors.

們FRSTNSGHT

TheQuietTakeoverofPrivateLabel12

WhenNationalBrandsLetThemDown,ConsumersTurntoPrivateLabel

71%

ofconsumerssaytheywouldbewillingtotryaprivatelabeliftheirpreferrednational

brandwasoutofstock.

Stockouts,inflation,andfrustrationcreateperfectentrypointsforprivatelabeltrial.

Retailersmustensuretheirprivatelabelsarevisible,accessible,andpositionedasstrongalternatives—notsecond-bestoptions.

“Ifyourpreferredname-brandproductisoutofstock,wouldyou

bewillingtotrytheprivate-labelequivalent?”

14%

27%

16%

44%

Source:FirstInsight(April2025)

Choices

Yes,always

.Yes,sometimes

No,Iwouldwaitor

gotoanotherstore●Notsure

)FRSTNSGHT

TheQuietTakeoverofPrivateLabel13

PrivateLabelIsn'taRecessionPlay—It’stheFuture

Privatelabelusedtobeconsideredadefensivemove—aplaybookforrecessions.

Now,it’sawinninglong-termgrowthstrategy.

Privatelabelsareexpandingnotjustinbudgetcategoriesbutintopremiumandluxurytiers.

Economicpressuresmaybeacceleratingtheshift,butconsumerattitudeshavepermanentlychanged.Retailersthatwaitriskplayingcatch-upinamarketplacetheynolongercontrol.

Theopportunityinprivatelabelisbiggerthanithaseverbeen—butwinningitrequiresmorethanjustofferingcheaperproducts.

Retailersmustbuildprivatelabelsasstrong,trustedbrandswithastrategythatfeelsintentional,elevated,andcustomer-obsessed.

們FRSTNSGHT

TheQuietTakeoverofPrivateLabel14

PrivateLabelIstheRetailer’sAdvantage

Conclusion:

Consumersarenotjustwillingtobuyprivatelabel,they’rechoosing

it,trustingit,andrecommendingit.Theyaremotivatedbyvalue,quality,andsmartalternatives;notbybrandnamesalone.Andcritically,manydon’tevenrealize,orcare,whethertheproductisprivatelabel,aslongasitdeliversonexpectations.

Economicpressures,consumerbehaviorchanges,andculturaltrendslikedupeculturehavealignedtocreatefertilegroundforprivatelabelgrowth

acrosseverycategory,notjustessentials,butpremiumproductstoo.

Privatelabelisnolongerarecession-eradefensestrategy.It’safuture-proofgrowthstrategythatstrengthensmargins,buildscustomerloyalty,andgivesretailerstruebrandownership.

MakePrivateLabelYourGrowthEnginewithFirstInsight

Don’tguess—buildwithconfidence.FirstInsight’sAI-drivenplatformhelpsretailerscreatehigh-performingprivatelabellinesby

aligningproduct,pricing,andpackagingdecisionswithrealcustomerfeedback—boostingmargins,reducingrisk,anddrivingloyalty.

+BuildTrusted,Margin-RichPrivateLabelswithConfidence

$11.86

MODELPRICE

“Ilovethemattepackaging,

feelsverypremium.”

UseFirstInsight’sAItotestpackaging,productquality,anddesignbeforelaunch.Aligningwithcustomerfeedbackhashelpedretailersimproveproductsuccess

ratesbyupto80%.

+ScaleWhatWorks,CutWhatDoesn’t

Ourreal-timeValueScoremrevealstop-andbottom-performingSKUsinrealtime.Scalewinners,dropunderperformers,andboostprofitwithasmarter,shopper-

“Iwishyoucouldseemoreofthefoodonthepackage.”

alignedassortment.

+TurnPrivateLabelintoYourTariffStrategy

7

TOTALVALUE

Gainpricingcontrolbysimulatingcostsandtestingpricepointsbeforelaunch.When74%ofconsumerssaythey’dswitchtoprivatelabelafterapricehike,it’snotjustanoption—it’sacompetitiveedge.

)FRSTNSGHT

15

CustomerslovethepremiumlookandfeelofChomp

Co.PupypFood,praisingthemodernpackagingand

cleandesignthatgiveittheimpressionofahigh-end

brand.Thevibrantcolorblockingandadorablepuppyimagemakeitvisuallyappealingonshelves.However,somefeelthatthepackagingshouldfeatureaclearerimageoftheactualfood,asthesmallbowlphoto

doesn,tprovideenoughdetailabouttextureor

ingredients,whichareimportantforpetparentsmakingbuyingdecisions.

16

FirstInsightisaglobalretailplatformthatusesitsnativeAItoturnreal-timecustomerfeedbackintoprofitablestrategiesformore

than600brandsandretailers.CompanieslikeGap,UnderArmour,WoolworthsandFamilyDollarrelyonFirstInsighttounderstand

whatconsumerswillbuy,whattheywon’t,howmuchthey’rewillingtopay,andhowtheseandotherfactorsdirectlyinfluenceplanning,inventoryandmargins.FirstInsightfurthertransformscustomer

feedbackintoaValueScore,assignedtoeverysingleproductit

gainsinsighton.Thesescoresaccuratelypredicttheviabilityof

anddemandforproductssothatretailerscanconfidentlymake

design,pricingandinventorydecisionsthatwilldelivermeasurablefinancialimpact.Thecompany’sVoiceoftheCustomerPlatformiscentraltoitsofferingandboastsanetworkof360+million

consumersspanning180countriesand67languagesandcurrencies.FirstInsightwasfoundedin2007.

Learnmoreat:

Contact

FirstInsight,Inc.VikiZabala

ChiefMarketingOfficer

viki.zabala@

Let’sTalk

ToseeFirstInsightinaction,bookademowithusat

ChannelVMediaKieranPowell

EVP

kieran.powell@

RespondentBreakdown

CONSUMERS

1267

Methodology

Thisstudywasconductedonlineamonganationally

representativesampleof1,267U.S.consumersinApril2025.

們FRSTNSGHT

17

TheQuietTakeoverofPrivateLabel

Appendix

Whichofthefollowingstore-brandproductsthatimitatepopularnationalbrandshaveyouheardofortried?(Selectallthatapply)

SephoraCollection(alternativetoluxurybeautybrands)

24%

Target’sGoodfellow&Coclothing(dupefordesignermenswear)

30%

Costco’sKirklandSignaturespirits/alcohol(i.e.Kirklandvodkavs.Premiumliquor)

32%

TraderJoe’ssnacklinesmimickingname-brandcereals/snacks

26%

AmazonBasicselectronics(asanalternativetonamebrands)

46%

Other(PleaseSpecify)

14%

Doyourealizewhenyouarepurchasingaprivate-label/store-ownedbrand?

Yes

71%

No

19%

Idon’tknow

10%

AUDIENCEBREAKDOWN|CONSUMERS

TotalRespondents

1267

Doyoutendtostickwithbrandsyoutrustorexplorenewones?

Brandloyal:IprefertobuyfrombrandsIknowandtrust

48%

Brandcurious:Iliketoexplorenewbrandsandtrydifferentoptions

32%

Savvysaver:Ilookfordealsandprefertospendconservatively

20%

Howwouldyoudescribeyourapproachtospending?

Balancedspender:Ibuyqualityitemsbutkeepaneyeoncosts

79%

Generousspender:Ienjoysplurgingandamwillingtopaymoreforpremiumproducts

21%

Whenshopping,doyoutendtomakeimpulsepurchasesorcarefullyplaneachpurchase?

Mostlyimpulsepurchases

15%

Occasionallyimpulse,butoftenplanned

43%

Carefullyplannedpurchasesmostofthetime

27%

Almostalwaysplannedwithasetbudget

15%

Howwouldyourateyouroveralltrustinthequalityofstore-brandgenericproductscomparedtonationalbrands?

Muchhighertrust

18%

Slightlyhighertrust

19%

Aboutthesame

47%

Slightlylowertrust

11%

Muchlowertrust

4%

們FRSTNSGHT

18

TheQuietTakeoverofPrivateLabel

Appendix

Whichoneofthesedenimjacketsisfromaprivatelabelbrand?

22%

22%

17%

Iamunsurewhichproductisfromaprivatelabelbrand

39%

Whichoneoftheseboxedmacandcheesepastasisfromaprivate

labelbrand?

24%

37%

16%

Iamunsurewhichproductisfromaprivatelabelbrand

23%

AUDIENCEBREAKDOWN|CONSUMERS

Whichoneofthesecleaningproductsisfromaprivatelabelbrand?

40%

24%

22%

Iamunsurewhichproductisfromaprivatelabelbrand

14%

們FRSTNSGHT

19

TheQuietTakeoverofPrivateLabel

Appendix

Whichoneofthesepensetsisfromaprivatelabelbrand?

32%

29%

27%

Iamunsurewhichproductisfromaprivatelabelbrand

13%

Whichoneoftheseessentialoilsisfromaprivatelabelbrand?

28%

20%

27%

Iamunsurewhichproductisfromaprivatelabelbrand

25%

AUDIENCEBREAKDOWN|CONSUMERS

Whichoneofthesepaintrollersisfromaprivatelabelbrand?

23%

32%

23%

Iamunsurewhichproductisfromaprivatelabelbrand

22%

們FRSTNSGHT

20

TheQuietTakeoverofPrivateLabel

Appendix

Whichoneoftheseshampoosisfromaprivatelabelbrand?

25%

18%

25%

Iamunsurewhichproductisfromaprivatelabelbrand

32%

Whichoneofthesepetfoodsisfromaprivatelabelbrand?

17%

31%

23%

Iamunsurewhichproductisfromaprivatelabelbrand

30%

AUDIENCEBREAKDOWN|CONSUMERS

Whichoneofthesestoragecabinetsisfromaprivatelabelbrand?

21%

21%

15%

Iamunsurewhichproductisfromaprivatelabelbrand

43%

們FRSTNSGHT

21

TheQuietTakeoverofPrivateLabel

AUDIENCEBREAKDOWN|CONSUMERS

Whattypesofprivate-labelproductsdoyoucommonlypurchase?(Selectallthatapply)

Grocery/Food&Beverages

56%

HouseholdCleaningSupplies

38%

HomeGoods/Furniture

19%

PersonalCare&Beauty

33%

Clothing&Apparel

34%

Electronics&Accessories

14%

Health&Wellness

28%

HomeImprovement/Hardware

16%

PetSupplies

24%

Office&Stationary

18%

Idonotpurchaseprivate-labelproducts

14%

Inwhichcategoriesdoyouavoidprivate-label