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Brands vs Own Label the fight for the supermarket shelf |...
2026-04-22 · via Economic news

With supermarket private labels reaching a record 50% unit share across major European markets, traditional food and drink brands are facing an unprecedented challenge.

 According to data from Circana and analysis published by FoodNavigator on April 22, 2026, the combination of persistent inflation and improved quality perception has transformed "own-brand" products from budget compromises into a permanent consumer preference, News.Az reports, citing Food Navigator.

In the UK and Europe, shoppers are increasingly viewing private labels as a competitive "category of their own" rather than just cheaper alternatives.

To reclaim market dominance, industry experts outline three strategic pillars for established brands:

Optimal Pricing Innovation: Brands must move beyond reflexive discounting, which can erode brand equity. Instead, they need to identify "optimal price points" that justify the premium while acknowledging the narrowing gap between brand-name prices and the perceived value of store brands.

Targeting High-Growth "Lifestyle" Niches: While private labels dominate in staple categories, brands can win by leading in specialized areas such as high-protein, gut health (fermented foods), and "clean label" products. Innovation in the GLP-1 companion food space—nutritional products tailored for those on weight-loss medications—is cited as a critical "future-ready" growth area.

Disciplined and Emotional Promotions: Brands are encouraged to shift from "price wars" to creating emotional loyalty through "limited edition" launches and transparent sustainability practices. Successful brands are those that offer a "premium experience" or functional benefits—like better sleep or improved fitness—that generic supermarket labels have yet to master.

The consensus is that the traditional CPG model of relying on blockbuster marketing budgets is no longer enough. To survive the era of private label dominance, brands must provide the "affordable luxury" and high-level functionality that shoppers are now demanding as part of their "standard" grocery experience.

News.Az 

By Leyla Şirinova