New NIQ & World Data Lab report reveals how consumer polarization is redefining value, accelerating private label adoption, and reshaping competition on the shelf
As fast-moving consumer goods (FMCG) prices rose 26% globally between 2021 and 2025, consumers have become more deliberate about where they save and where they spend. NielsenIQ has released new findings showing that private label is no longer viewed simply as a lower-cost substitute, but as a credible competitor across value, mainstream, and premium segments.
Shoppers are becoming less loyal to traditional labels and more focused on which products best meet their needs, budget, and expectations in the moment.
The findings, published in NIQ’s latest report, A Tale of Two Consumers: The Polarized Mindsets Reshaping Global Consumption, created in collaboration with World Data Lab, show how consumer polarization is redefining value and reshaping competition on the shelf. The report also draws on insights from NIQ’s 2025 report Finding Harmony on the Shelf which documented changing perceptions of private label products.
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Key findings from these reports include:
- 58% of consumers say they don’t care whether a product is a national brand or private label—they simply buy what they need
- 67% of Gen Z consumers believe private-label products are just as good as national brands
- 68% of consumers view private-label products as a good alternative to national brands
- 69% of consumers believe private-label products offer good value for money
- About one-third of price-constrained consumers will switch to lower-priced products or whichever brand is on promotion
For brands and retailers, the shift is significant: shoppers are becoming less loyal to traditional labels and more focused on which products best meet their needs, budget, and expectations in the moment.
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The rise of private label is no longer just a trade-down story. Consumers increasingly view private label brands as legitimate value alternatives, premium alternatives, and in many cases equivalent substitutes for national brands.
“This is one of the most significant shifts happening in consumer goods today,” said Ramon Melgarejo, President of E-Commerce at NIQ. “Consumers are no longer evaluating products primarily based on who makes them. They are evaluating whether a product delivers the right mix of quality, value, convenience, and relevance. That has created a much more democratic and competitive shelf than we’ve seen historically.”
NIQ finds that today’s consumers move fluidly between “upgrade” and “price-constrained” mindsets depending on the category, occasion, and perceived value equation. That behavior is creating new opportunities for retailers to grow private label offerings beyond traditional value tiers.
In some categories, private label helps consumers stretch household budgets. In others, retailers are using innovation, packaging, premium ingredients, and stronger product claims to position private label as a desirable upgrade rather than simply a lower-cost substitute. As a result, private label is increasingly competing across value, mainstream, and premium segments alike.
