A growing number of Indian consumers are turning to private label products, signalling a marked shift in purchasing behaviour as value, price, and pack size increasingly influence shopping decisions. According to the India edition of the EY Future Consumer Index, 52% of consumers are now choosing private labels over traditional branded products.
This transition is being driven by the belief that private labels deliver comparable quality, with 70% of respondents stating that store brands meet their needs just as effectively as branded counterparts.
Quality and value remain key to switching behaviour
While value is the driving factor behind this shift, consumers remain discerning about quality. 47% of respondents indicated they would return to a branded product if it offered superior taste, quality, or performance. Similarly, 44% said they would switch back to branded options for better value for money, while another 44% are willing to pay a premium for enhanced product performance.
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Retailers are adapting to this trend by expanding private label offerings and allocating prime shelf space. 74% of consumers report seeing more private labels where they shop, and 70% have noticed these items being positioned at eye-level, increasing visibility and accessibility.
Private labels seen as cost savers in uncertain times
The survey also highlights a strong price sensitivity among Indian consumers. 69% said private labels help them save money, and 59% admitted they only buy branded products when they are on sale, reinforcing the growing preference for affordability over brand recognition.
Notably, even when established brands modify products to add value—such as changing ingredients or packaging—34% of consumers view these changes as cost-cutting rather than genuine innovation.
The findings reflect a long-term behavioural shift, with private labels no longer seen as compromise choices, but as smart, cost-effective alternatives. This trend is pushing both retailers and national brands to rethink their strategies, improve offerings, and build deeper engagement with the price-conscious Indian consumer.
