Trusted, But Traded Down: How Own-Label Became Good Enough to Challenge Brands
The relationship between UK shoppers and brands is not breaking down. In many ways, it remains intact. What is changing is the role brands play in everyday decision-making. The shift is not that brands have got weaker. What has changed is how competitive own-label has become. Consumers still value brands but rely on them less.
Our latest research at The Harris Poll UK, based on a nationally representative sample of 1,000 grocery shoppers, shows that brand perception is still positive. 64% of consumers believe branded products are higher quality, 59% see them as more consistent, and 57% say they taste better. These are not weak numbers. But they are no longer decisive.
The most important shift is the widening gap between perception and behaviour. Even among those who believe in brand superiority, purchasing tells a different story. In fresh everyday essentials, just 28% of shoppers buy mostly branded, while 70% choose own-label. Across the store, own-label now dominates in four out of five categories, with its strongest performance in ambient staples, where 76% of shoppers buy own-label compared with just 17% who remain mostly branded. This is not a short-term reaction to inflation. It reflects a more fundamental change in how consumers make decisions in the aisle. Brands still signal quality, but in many categories, they are no longer seen as essential because own-label is now ‘good enough’.
Where brands still win
Where brands do continue to win, they do so for a clear reason. In treats and indulgences, branded purchasing is highest at 35%, and this is also where 76% of consumers say they could tell the difference in a blind test. Brand strength holds where the difference is tangible and personally experienced. In more functional categories, that confidence drops. In ambient staples, only 55% believe they could distinguish branded from own-label, and brand share declines accordingly. If the difference cannot be felt, it is unlikely to be paid for.
Value sits at the centre of this shift. While brands retain strength on quality and taste, they struggle to convince shoppers on value for money. Only 41% agree that branded products offer better value, while 34% actively disagree. Under pressure, behaviour follows. 24% of consumers say they switch to cheaper alternatives, 22% wait for promotions, and only 24% are willing to pay more without changing their behaviour. This creates a difficult environment for brands to operate in, where nearly half of shoppers are either trading down or delaying purchase rather than accepting higher prices.
Why Own-Label Feels Different Now
What is perhaps most striking is that this is not simply a story of cost pressure, but a story of rising confidence in own-label. A significant 83% of shoppers agree that own-brand products have improved in recent years, a view that is consistent across age groups. Even among shoppers at discounters such as Aldi and Lidl, belief in own-label improvement is just as strong. Shoppers have not abandoned brands. However, they have reassessed the alternatives and concluded that, in many cases, own-label now meets their needs at a lower cost.
The implications for both brands and retailers are clear. For manufacturers, the challenge is no longer about reinforcing quality credentials. That battle has largely been won in the minds of shoppers. The issue is conversion. If 64% believe brands are higher quality but only 28% buy them in key categories, then the gap lies in proving that difference in ways that are tangible and immediate. This points to a need for stronger product differentiation, clearer sensory superiority and more visible innovation. At the same time, brands need to confront the value question directly. With 34% of shoppers rejecting the idea that brands offer better value, pricing, pack architecture and promotional strategy need to work harder to justify the premium.
For grocery retailers, the findings reinforce the strength of own-label as both a defensive and offensive asset. Own-label is no longer just a value play. With 83% of consumers recognising improvement, it has become a credible quality alternative across much of the store. The opportunity now lies in continuing to invest in tiered ranges that capture different shopper needs, from entry-level value to premium propositions that rival branded offers. The fact that own-label already reaches 76% penetration in some categories shows how embedded it has become. Retailers that can balance price, quality and clear segmentation stand to deepen that advantage further.
What Counts as Good Enough
Ultimately, this is a shift in how shoppers define what meets the standard. Brands are still trusted and seen as high quality, but they are no longer essential because own-label has become ‘good enough’.
To learn more about how UK shoppers are redefining value, quality and brand choice across grocery, get in touch with The Harris Poll UK.