Indian consumers’ brand choices are witnessing a shift as they are carefully evaluating price, value and pack size. According to EY Future Consumer Index (FCI) – India edition, 52 per cent consumers are switching to private labels, with 70 per cent agreeing that these brands are increasingly providing better quality products.
This comes at a time when modern trade retailers, e-commerce and quick commerce players are witnessing strong demand for private label brands.
As per the EY report, the growing preference for private label products is transforming consumer perceptions, positioning store brands as the favoured alternative to traditional branded options.
70 per cent of consumers believe that private labels meet their needs just as effectively as branded products. Also 59 per cent of consumers indicated that they only purchase branded products when they are on sale, prioritizing discounts over brand loyalty.
The 15th edition of the EY Future Consumer Index surveyed over 1000 consumers across India, between January 24, 2025 to February 20, 2025.
Even when brands turn to innovation and “brand improvements” such as changing ingredients or formulas to create more value, 34 per cent of respondents perceive these efforts as cost-cutting measures rather than genuine innovation.
“Retailers also appear to be responding to this shift, with 74 per cent of consumers noticing more private label options where they shop and 70% observing more private label items positioned at eye level on store shelves. Additionally, a significant 69% of consumers said that store brands and private labels help them save money,” the report noted.
Angshuman Bhattacharya, Partner and National Leader, Consumer Products and Retail Sector, EY-Parthenon said, “Consumer behaviour has traditionally evolved in response to changing economic situations, but the current shifts appear to be more permanent. Retailers are confidently launching private labels and allocating prime shelf space to them, while technology is enhancing the shopping experience by providing consumers with limitless options and the ability to compare products. The rapid growth of private labels is further evidenced by the rising popularity of fresh, new brands among Indian consumers. At the same time, this presents established brands with both the opportunity and the imperative to deepen their connection with consumers and explore innovative ways to stay relevant.”
Notably, 47 per cent of respondents expressed willingness to return to a branded product if it offers superior taste, quality or performance. Additionally, 44 per cent of consumers indicated they would switch back to branded products for better value for money. Almost half of the respeondens are also willing to pay a premium for enhancements that improve product performance.
Published on May 21, 2025
Indian consumers’ brand choices are witnessing a shift as they are carefully evaluating price, value and pack size. According to EY Future Consumer Index (FCI) – India edition, 52 per cent consumers are switching to private labels, with 70 per cent agreeing that these brands are increasingly providing better quality products.
This comes at a time when modern trade retailers, e-commerce and quick commerce players are witnessing strong demand for private label brands.
As per the EY report, the growing preference for private label products is transforming consumer perceptions, positioning store brands as the favoured alternative to traditional branded options.
70 per cent of consumers believe that private labels meet their needs just as effectively as branded products. Also 59 per cent of consumers indicated that they only purchase branded products when they are on sale, prioritizing discounts over brand loyalty.
The 15th edition of the EY Future Consumer Index surveyed over 1000 consumers across India, between January 24, 2025 to February 20, 2025.
Even when brands turn to innovation and “brand improvements” such as changing ingredients or formulas to create more value, 34 per cent of respondents perceive these efforts as cost-cutting measures rather than genuine innovation.
“Retailers also appear to be responding to this shift, with 74 per cent of consumers noticing more private label options where they shop and 70% observing more private label items positioned at eye level on store shelves. Additionally, a significant 69% of consumers said that store brands and private labels help them save money,” the report noted.
Angshuman Bhattacharya, Partner and National Leader, Consumer Products and Retail Sector, EY-Parthenon said, “Consumer behaviour has traditionally evolved in response to changing economic situations, but the current shifts appear to be more permanent. Retailers are confidently launching private labels and allocating prime shelf space to them, while technology is enhancing the shopping experience by providing consumers with limitless options and the ability to compare products. The rapid growth of private labels is further evidenced by the rising popularity of fresh, new brands among Indian consumers. At the same time, this presents established brands with both the opportunity and the imperative to deepen their connection with consumers and explore innovative ways to stay relevant.”
Notably, 47 per cent of respondents expressed willingness to return to a branded product if it offers superior taste, quality or performance. Additionally, 44 per cent of consumers indicated they would switch back to branded products for better value for money. Almost half of the respeondens are also willing to pay a premium for enhancements that improve product performance.
Published on May 21, 2025
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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