The Institute of Grocery Distribution (IGD) is urging brands to focus on “visibility, innovation and emotional connection” to drive growth in an increasingly competitive, value-driven market, it said this week.
In August, the IGD reported that private label grew 52% faster globally than manufacturer brands in 2025, and now accounts for more than 40% of grocery sales across several major European markets including the UK (44.3%).
With private label closing the gap on quality and trust, brands must prove their added value at every stage of the shopper journey, from discovery to purchase, according to IGD’s latest research.
Justifying the premium
The IGD warns that brands can no longer rely on heritage, recognition, or perceptions of superior quality to justify their often premium price points.
Instead, manufacturers should focus on finding new, modern ways to leverage the enduring drivers of long-term success, described as “visibility, innovation and emotional connection.”
Rachel Sibson, senior insight analyst at IGD, said: “Brands are not losing relevance, but they are losing the automatic advantage they once enjoyed.
“Visibility means showing up consistently across a fragmented shopper journey…”
“They must find new ways to activate the fundamental drivers of their success. Visibility means showing up consistently across a fragmented shopper journey, innovation extends far beyond new products and emotional connection is increasingly built through stories, experiences and shared values.
“The brands that continue to succeed as private label closes the gap will evolve fastest and work hardest to continue earning shopper preference.”
Brand choice
Despite growing competition from private label, trust remains the strongest reason shoppers choose branded products, particularly in categories where efficacy, reliability and reassurance matter most.
The IGD’s research found the strongest brand preference in dental care (8.2/10), baby milk and drinks (8.1/10), hot chocolate and malt drinks (8.1/10), cat food (8.0/10) and laundry (7.8/10).
In these categories, shoppers place a particularly high value on trust, familiarity and consistent performance.
However, the report warns that trust alone will not be enough to guarantee future growth, as retailers continue to strengthen their own brand ranges and improve shopper perceptions of private label quality.
Continually earning
To help brands respond, IGD has identified three enduring drivers of long-term success. Visibility is becoming increasingly important as shoppers move across a growing number of online and offline touchpoints.
According to IGD, successful brands are those that remain consistently present throughout fragmented shopping journeys and show up at key decision-making moments, whether through retail media, in-store execution, social media or partnerships.
Secondly, it said innovation is no longer limited to launching new products. The report highlights opportunities for brands to stand out through packaging, reformulation, activations, collaborations and new usage occasions, creating value that’s harder for private label to replicate.
Finally, to build stronger emotional connections, brands are being encouraged to move beyond transactional relationships and create meaningful experiences rooted in purpose, storytelling, convenience and cultural relevance.
”These deeper connections can help build loyalty that extends beyond product performance or price.
Sibson concluded: “Brands have spent decades building trust. Now they must continually earn shopper preference to keep it.”
A free sample of IGD’s report, How Brands Drive Growth in a Value-Driven Market, is available to read here.
No comments yet