Asia Pacific Consumers Embrace Private Labels While Valuing Established Brands: NIQ’s 2025 Global Outlook
NielsenIQ (NIQ), a leading global consumer intelligence company, has released its comprehensive report, Finding Harmony on the Shelf: 2025 Global Outlook on Private Label and Branded Products. This study provides in-depth insights into evolving consumer preferences across the Asia Pacific (APAC) region, highlighting a significant shift towards private label products while underscoring the enduring strength of established brands.
Rising Trust in Private Labels Across Asia Pacific
The NIQ study, encompassing over 17,000 consumers across 25 markets—including Australia, China, India, Indonesia, Singapore, South Korea, and Thailand—reveals a growing inclination towards private label products. Notably, 54% of APAC consumers express a greater willingness to purchase private labels than ever before. This trend is particularly pronounced in Thailand (64%), India (61%), China (56%), and Indonesia (55%) .
Historically perceived primarily as budget-friendly alternatives, private labels are now gaining recognition for their value, quality, and alignment with community values. This shift indicates a broader acceptance and trust in private labels among APAC consumers.
Enduring Loyalty to Established Brands
Despite the rising popularity of private labels, established brands continue to hold significant sway among consumers. In the APAC region, consumers associate branded products with superior quality, diverse product offerings, omni-channel availability, and strong brand reputation .(Newswire)
These attributes contribute to the lasting appeal of established brands, particularly in categories where quality and trust are paramount. The emotional connection and perceived reliability of these brands ensure their continued relevance in the evolving retail landscape.
Symbiotic Growth: Private Labels and Branded Products
Rather than viewing private labels and branded products as competitors, NIQ’s report emphasizes the potential for symbiotic growth. Key dynamics facilitating this collaboration include:
- Brand Halo Effect: Private labels can build trust by being positioned alongside established brands.
- Increased Store Traffic: Interest in private labels can drive overall store visits, benefiting all products.(NIQ)
- Price Anchoring: Premium brand pricing can highlight the value proposition of private labels.(NIQ)
- Market Expansion: Growth in private labels can expand product categories, creating opportunities for all brands .(NIQ)
This collaborative approach suggests that retailers and manufacturers can achieve mutual success by leveraging the strengths of both private labels and branded products.
Generational Shifts and Premiumization
The report also highlights generational differences in purchasing behavior. Younger consumers, particularly Millennials and Gen Z, show a higher propensity to indulge in premium-brand products, with 61% and 58% respectively indicating a likelihood to treat themselves .(NIQ)
This trend underscores the importance for brands to cater to varying consumer preferences, balancing affordability with premium offerings to capture a broader market segment.
Strategic Implications for Retailers and Manufacturers
The evolving consumer landscape in the APAC region presents both challenges and opportunities:
- For Retailers: Investing in private label development while maintaining strong partnerships with established brands can enhance product diversity and meet diverse consumer needs.
- For Manufacturers: Focusing on quality, innovation, and emotional branding can reinforce consumer loyalty and differentiate products in a competitive market.
By embracing a collaborative approach, both retailers and manufacturers can drive category growth and achieve sustained success.(NIQ)
About the Report
Finding Harmony on the Shelf: 2025 Global Outlook on Private Label and Branded Products is based on a global NIQ study conducted between December 2024 and January 2025. The survey included over 17,000 online consumers across 25 countries, focusing on individuals who regularly make shopping decisions for their households .(NIQ, NIQ)
For a more detailed analysis and insights, you can access the full report here:
