
Approximately 62 per cent of KSA consumers are increasingly purchasing more private label products, a recent report from NielsenIQ reveals.
The Finding Harmony on the Shelf: 2025 Global Outlook on Private Label & Branded Products report also explores the catalysts driving these trends both globally and regionally, and key insights that retailers and consumer packaged goods (CPG) manufacturers should consider to strategically engage consumers in a fast-moving macroeconomic environment.
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.
KSA consumers’ perception of private label products and their quality has significantly improved, while global brands also see strong performance, the report reveals.
Some of the key trends driving growth of both private label and branded products include:
- Perceived value shift: The stigma around private labels is waning, with 71 per cent of respondents viewing them as good alternatives to name brands and 69 per cent perceiving them as offering good value.
- Growing demand: As a result, 71 per cent of consumers say they would buy more private label products if a larger variety were available.
- Private label stabilisation: The share of sales in KSA has risen by only +0.1 points, but there are signs of slowed growth across all regions. (KSA private label growth is 3.1 per cent whereas FMCG is 2.6 per cent, indicating it is growing slightly faster.)
- Premiumisation: Approximately 66 per cent of Saudi consumers say they are likely to treat themselves by upgrading to a premium-brand product, with younger generations – Millennials (61 per cent) and Gen Z (58 per cent) – surpassing that average.
- Openness to explore: About 67 per cent of KSA respondents say they’re expanding their brand purchases across multiple categories. Additionally, 58 per cent 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. NIQ Retail Measurement Services report a 3.1 per cent increase in sales from KSA for top 10 global brands with annual sales growth of private labels.
However, regional differences exist; in Egypt, consumers exhibit a stronger preference for private labels.
Retailers and manufacturers are discovering that collaboration, rather than competition, can unlock powerful growth – especially in markets like Saudi Arabia where consumer behaviour is rapidly evolving.
For private labels, proximity to name brands creates a valuable halo effect, with shoppers perceiving enhanced quality and trustworthiness. Consumers are drawn to name brands for their sense of pride (37 per cent), superiority (38 per cent) and notoriety (42 per cent), and when private labels are positioned nearby and match premium standards, the result is an uptick in perceived value – and sales.
The dynamic shifts when looking at branded products, where retailer credibility becomes a critical asset. The NIQ report reveals that nearly two-thirds of Saudi shoppers trust store brands precisely because of the retailer’s endorsement, creating a ripple effect that lifts both private label and branded product performance.