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UK private label market ‘at its strongest yet’

The UK's private label market is strong, but future success relies on smart own-label product design, innovative launches, and strong storytelling, says a marketing expert.

According to data from Circana, private label represents 52% of UK unit sales and 44% of total market value today; data supported by Worldpanel research that found own-label represented 52% of grocery spend in January 2026.

At a glance:

• The UK private label market is strong, with innovation coming from both premium and hard discount retailers.
• M&S, Aldi, and Iceland stand out for innovation efforts, in terms of product launches, engagement, and social media buzz.
• Future development requires retailers to match brands on taste, quality, and consistency.

“UK private label is at its strongest yet,” said Vhari Russell, marketing expert and founder of UK agency The Food Marketing Experts. “It has gone from being seen as cheaper copy to a set of brands in their own right, with tiered good, better, and best ranges, premium and health-led lines, and real innovation,” Russell told Ingredients Network.

And whilst the cost-of-living crisis in the UK has accelerated this shift, she said the main driver beyond the success of private label is that retailers have “got better at what they make”.

“Premium retailers such as Marks & Spencer (M&S) and Waitrose lead on provenance, quality, and first-to-market ideas. Budget retailers like Aldi and Lidl use premium tiers such as Specially Selected to offer a treat at a lower price, which is why they've been taking trade-up spend. In the middle, Tesco and Sainsbury's have built strong premium own-label ranges with Finest and Taste the Difference, helping them compete at both ends.”

Many UK retailers have also “moved faster than brands on health”, Russell said, with portion-controlled, high-protein ranges launched in Sainsbury’s, Co-op, M&S and Morrisons recently to respond to the rise of weight-loss drugs.

Private label in the UK: What are the ‘stand-out’ efforts?

According to the marketing expert, efforts to evolve own-label offerings are happening across the entire UK retail ecosystem, with some stand-out efforts.

Premium retailer M&S, for example, launched around 1,000 new food lines in 2025 and has been upgrading its fish, meat, bakery, and ready meal offerings, contributing to a 7% rise in food sales for the year. The company is also working hard to create buzz on social media, with M&S director of product development Kathryn Turner sharing new launches and product updates.

Budget retailer Aldi also launched more than 1,000 products in 2024 and was named the Own Label Range of the Year at the Grocer Gold Awards. Discount frozen food specialist Iceland is also on the map thanks to its viral launches, including its recent chicken drumstick ice cream, and its quarterly product development accelerator 'Brands on Ice' which invites challenger and established brands to pitch exclusive ideas.

“M&S is the fastest-growing grocer in the latest data, and it combines quality, bold new products, and a strong sense of brand,” Russell said. Its Colin the Caterpillar and light-up gin bottle are two good examples of novelty products that have created earned media and social buzz, as well as bringing in new or lapsed shoppers, she said.

“Aldi deserves credit for the best premium own-label at its price point,” she added, “with Specially Selected setting the standard for trading up without a premium price.” It has also worked hard on seasonal own-label offerings, she said, with Christmas product sales rising 10% in 2024 and some shoppers buying Aldi Christmas puddings as early as September.

Private label growth opportunities: Health, flavour, and partnerships

Looking ahead, Russell said the share of private label in the UK's food and drink market “will keep growing” and, crucially, the line between brands and private label will continue to blur.

In trend terms, she said health-led ranges will continue to gain traction, particularly those centred around protein, fibre, and portion size; global and regional flavours will also build too. Retail partnerships with chefs and challenger brands are also likely to expand, alongside growth of premium own-label ranges, she said.

For retailers looking to evolve private label offerings, she said there are a number of product design areas that remain important. Formats that consider portion size and meal solutions to fit with how people eat now – including smaller, high-protein, high-fibre options – are increasingly key, she said. Packaging that tells a story and offers a premium look and feel is also a must, as well as formulations containing fewer additives and better nutritional profiles, she said.

When it comes to marketing own-label ranges, she said “real storytelling around provenance and craft” holds a lot of power, with social-first launches and chef or brand collections offering plenty of promise. Where possible, it is also key for retailers to offer a clear “good, better, best ladder”, so that every shopper has a reason to trade up, the expert said.

As competition heats up and consumers continue to shop own-label ranges, she said there is plenty of scope to onboard shoppers but retailers must ensure own-label matches brands on taste, quality and consistency.

“That means trust, a clear point of view on health or provenance and packaging and storytelling that feels like a brand. The best own-label no longer asks shoppers to compromise, Russell said. “The winners will treat own-label as a brand, with a clear identity, real innovation and storytelling. For suppliers and challenger brands, the opportunity is to be the innovation partner retailers need.”