From Generic to Preferred: The Growth of Private Label Shopping
The late Mr. Dave Nichols who revolutionized branding launched Canadian retailers’ first private-label brand in the late 1980’s. Setting out to make the perfect chocolate chip cookie and to outdo Christie’s then-best-selling Chips Ahoy, he personally approved the President’s Choice Decadent Chocolate Chip Cookie. Having set the gold standard for the private-label brand, some 25 years later in 2013, private-label sales accounted for 30% of Loblaws annual sales.[1] In 2022, Loblaws accounted for 44% of all private-label units sold in Canada.[2]
The private-label brand was launched to counter economic pressures like inflation for cost-conscious consumers. When first launched, consumers generally perceived them as lower quality and more of a price alternative to national brands. Today, during these inflationary periods, the private-label brand has become a staple in consumer shopping carts.
What are Canadian Retailer’s Private Label Food Brands?
Loblaws: President’s Choice, No Name, Blue Menu. PC Black Label
Sobeys: Compliments, Panache
Metro: Irresistibles, Selection, Life Smart
Walmart: Great Value
Costco: Kirkland
What is the Growth of the Private Label Brand?
Over the past 2 years, Canada’s private-label dollar share has increased from 18.3% to 18.9%, which translates into an increase of approximately $600M in private-label sales.[3] North of the border, private-label sales have grown faster than national brands, with store brand sales increasing 3.9% to $271B compared to a 1% increase for national brands.[4]
How does Canada’s Private Label Dollar Market Share Compare to Global Countries?
Compared to other global countries, Canada’s FMCG private-label dollar market share[5] is underdeveloped as identified in Table 1.
Table 1
Private-label FMCG Market Share: 2024[6]
| Canada | United States | UK | Australia | France | Germany | Italy | Spain | |
| Dollar | 18.8% | 22% | 37% | 36% | 36% | 43% | 30% | 49% |
Though underdeveloped, Elliot Morris, Partner with EY Canada is quoted as saying:
“Private label is growing faster here in Canada than in other parts of the world”. “There are twice as many people that are buying private-label brands today in Canada than there were five years ago.” “About 40% of those who try private label don’t intend to return to brands.”[7]
Who is the Typical Private Label Consumer?
Though the typical consumer for private-label brands was the cost-conscious consumer, working professionals, and higher income households value their quality and price. Private-label brands are popular across all income levels. Millennials and Gen Z are becoming increasingly receptive to them. Twice as many Millennials (46%) and Gen Z (46%) are more inclined to spend more on private-label brands than Baby Boomers (23%). As part of the same study undertaken in 2024, Nielsen IQ revealed that 48% of Canadians are purchasing more private-label products than ever before. Germany was the leading country at 61%.[8]
Consumers Perception Towards Private Label Brands
The appeal of store-brand products lies in their ability to help shoppers manage their budgets amid rising prices. In addition, shoppers increasingly see private-label items as innovative, of high quality and greater value. Seventy-three percent (73%) of Canadians purchase private label to save money,[9] and 77% who purchase private-label for savings agree that store brands are a good alternative to name brands.[10]
In Which Categories Do Private Label Brands Dominate?
In quarter 2, 2023, private-labels dollar market share for food was 20.6%. The top 5 categories for private-label: 1. Bakery: 27.1%, 2. Meat & Seafood: 24.8%, 3: Grocery: 21.1%, 4. Produce: 15.5%, and 5. Deli: 11.0%.[11] By comparison, Table 2 breaks down the categories private-label maintains a dominant share in the US, Europe, and Australia.[12]
Table 2
Private Label’s Dollar Share by Category
| Category | US | Europe | Australia |
| Dairy | 45% | 51% | 37% |
| Meat & Seafood | 44% | 64% | 82% |
| Bakery | 43% | 49% | 55% |
| Kitchen & Paper | 40% | 67% | 27% |
| Health | 19% | 15% | 7% |
| Produce | 17% | 42% | 63% |
| Frozen | 19% | 48% | 26% |
How Can Brands Compete in Today’s Market?
Dave Nichols was a visionary before his time. In 2005, he was inducted as a Visionary into the Hall of Canadian Marketing Legends by the American Marketing Association.
Today, once a stigma, retailers are driving private labels as innovative, exciting, and even premium alternatives to name brands. In 2024, it was estimated by Grocery Business Canada, that 100% of all Canadian households purchased private-label products.[13]
With consumers of all ages purchasing private label, how do national brands compete in
in today’s inflationary wars market given:
- On average Canadians are purchasing the same or more private-label products.[14]
- In 2024, consumers are buying private-label products in seven more categories on average (72) 2022 (65).[15]
Here are 3 ways national brand manufacturers can compete alongside private labels:
- Grow the Category: Launch innovative new products that will defend the shelf space. Emphasize the brand’s value proposition. Brands growing innovation sales in 2022 were 1.8X more likely to grow overall sales than those with stagnant or declining innovation sales.[16]
- Connect with Consumers: Create compelling brand stories. “The brands that will succeed in 2025 will be those with the most appealing narratives rather than the ones with extensive marketing budgets”.[17]
- Become Environmentally Conscious: Brands must showcase their commitment to sustainability. Create an emotional connection with consumers that goes beyond transactions. 92% of consumers are more likely to trust a brand that is environmentally or socially conscious.[18]
[1] Dave Nichol: The Man Who Revolutionized Branding, and Made Simple Exotic, www.theglobeandmail, September 2013
[2] Private-label Market in Canada – Statistics and Facts, www.staista.com
[3] Trends with Traction, Mike Ljubicic, Grocery Business, January / February 2025
[4] Private-label Sales Rose 3.9% in 2024 to Record $271 Billion, www.plma.com, January 2025
[5] Trends with Traction, Mike Ljubicic, Grocery Business, January / February 2025
[6] From Growth to Transformation, A Global Private-label Perspective, Circana, February 2025
[7] Canadian Consumers Driving Major Shift Toward Private-labels: EY Canada, www.retail-insider.com, April 2025
[8] The Rise of Private-labels: A Global Perspective on Growth and Consumer Trends, www.nielseniq.com, November 2024
[9] Canadians Grocery Shopping Experience, www.canadiangrocer.com, February 2025
[10] Private-label’s Staying Power, Carman Allison., Grocery Business, October / November 2023
[11] Private-label’s Staying Power, Carman Allison., Grocery Business, October / November 2023
[12] From Growth to Transformation, A Global Private-label Perspective, Circana, February 2025
[13] On-Line Search: “% of Cdn Households Who Purchased Private-label in 2024
[14] Canadians Grocery Shopping Experience, www.canadiangrocer.com, February 2025
[15] From Growth to Transformation, A Global Private-label Perspective, Circana, February 2025
[16] Consumer Outlook from Cautious to Conscious Consumption, Carman Allison, Nielsen IQ, November 2024
[17] Brand Story Telling: Why it’s Key to Customer Loyalty in 2025, www.lps-me.com, February 2025
[18] How Sustainable Advertising Can Build a More Resilient Brand, www.cacpro.com, November 2024