12-05-2025
Global report sheds light on the evolving dynamics between private label and branded products in Saudi Arabia (KSA), highlighting both challenges and growth opportunities
About 62% consumers in KSA are increasingly purchasing more private label products
Retailers and manufacturers vying for consumer attention can leverage collaborative relationships for mutual growth
KSA: NielsenIQ (NIQ) released 'Finding Harmony on the Shelf: 2025 Global Outlook on Private Label & Branded Products' a new report that provides an in-depth analysis of shifting global consumer attitudes towards private label and branded products, the catalysts driving these trends both globally and regionally, and key insights that retailers and CPG manufacturers should consider to strategically engage consumers in a fast-moving macroeconomic environment.
According to the report, approximately 62% of KSA consumers are increasingly purchasing more private label products. Simultaneously, the top 10 global brands experienced a resurgence in global sales momentum in 2024, signaling that retailers and CPG manufacturers will continue to compete for consumer attention on the shelves of both large and small grocery stores and retailers.
Key Trends Shaping Private Label and Branded Product Growth in KSA
Consumer perception of private label products and their quality has significantly improved, while global brands also see strong performance.
Key trends driving growth of both private label and branded products include: Perceived value shift: The stigma around private labels is waning, with 71% of respondents viewing them as good alternatives to name brands and 69% perceiving them as offering good value.
The stigma around private labels is waning, with 71% of respondents viewing them as good alternatives to name brands and 69% perceiving them as offering good value. Growing demand : As a result, 71% of consumers say they would buy more private label products if a larger variety were available.
: As a result, 71% of consumers say they would buy more private label products if a larger variety were available. Private label stabilization : The share of sales in KSA has risen by only +0.1 points, but there are signs of slowed growth across all regions. (KSA PL growth is 3.1% whereas FMCG is 2.6%, indicating it is growing slightly faster.)
: The share of sales in KSA has risen by only +0.1 points, but there are signs of slowed growth across all regions. (KSA PL growth is 3.1% whereas FMCG is 2.6%, indicating it is growing slightly faster.) Premiumization : Approximately 66% of Saudi consumers say they are likely to treat themselves by upgrading to a premium-brand product, with younger generations—Millennials (61%) and Gen Z (58%)—surpassing that average.
: Approximately 66% of Saudi consumers say they are likely to treat themselves by upgrading to a premium-brand product, with younger generations—Millennials (61%) and Gen Z (58%)—surpassing that average. Openness to explore: About 67% of KSA respondents say they're expanding their brand purchases across multiple categories. Additionally, 58% of both global and KSA respondents state that brand or store brand is irrelevant, choosing products based on necessity instead.
The positive consumer sentiment is supported by impressive worldwide sales data, with NIQ Retail Measurement Services reporting a 3.1% increase in sales from KSA for top 10 global brands with annual sales growth of private labels.
However, regional differences exist; Egyptians exhibit a stronger preference for private labels, while South Koreans are less likely to perceive private labels as a viable alternative to name brands.
Harmonizing Success Between Private Label and Branded Products
Strategies retailers and manufacturers can use to create synergies for mutual growth include: For private labels: Brand halo effect: Proximity to name brands enhances the appeal of private labels. Brands thrive on pride (37%), superiority (38%), and notoriety (42%). Trust in private labels increases when they match premium quality, boosting sales.
Price anchoring : While the report highlights the growing interest in private label (PL) products in KSA, with 59% of consumers reporting increased PL purchases, the market share remains surprisingly low at just 3.5%.
: While the report highlights the growing interest in private label (PL) products in KSA, with 59% of consumers reporting increased PL purchases, the market share remains surprisingly low at just 3.5%. For branded products: Increased traffic: Nearly 65% for KSA consumers trust store brands due to retailer endorsement. NIQ data shows that top UK retailers boosted both private label and branded product sales. In 2024, three UK retailers drove over 70% of private label growth and over 86% of branded product growth, highlighting how a retailer's reputation can benefit all its products—name brands included.
About Finding Harmony on the Shelf: 2025 Global Outlook on Private Label & Branded Products Report
This first-of-its-kind report focuses on trends driving global growth, assesses symbiotic/competitive dynamics between private label and branded products, and identifies opportunities for retailers and manufacturers to drive collaboration and growth.
Research Methodology
The NIQ 2025 Private Label & Branded Products report global survey was conducted between December 2024 and January 2025, polling over 17,000 online consumers in 25 countries throughout Asia Pacific, Europe, Latin America, the Middle East & Africa, and North America. The respondents include consumers who often make shopping decisions on behalf of their households and agreed to participate in this survey. The sample for each country incorporated age and gender quotas aligned with respective census data, while ensuring that each demographic group maintained a statistically reliable base size.
About NielsenIQ:
NIQ is a leading consumer intelligence company, delivering the most complete understanding of consumer buying behaviour and revealing new pathways to growth. NIQ combined with GfK in 2023, bringing together two industry leaders with unparalleled global reach. Our global reach spans over 90 countries covering approximately 85% of the world's population and more than $ 7.2 trillion in global consumer spend. With a holistic retail read and the most comprehensive consumer insights—delivered with advanced analytics through state-of-the-art platforms—NIQ delivers the Full View™.
