Food and drink brands are under increasing pressure to refine their strategies and reconnect with consumers. According to new research from IGD, the report titled How Brands Can Drive Growth in Challenging Times indicates a widening price gap between branded and private label goods — now averaging 86% — along with a notable shift in consumer behaviour. Currently, 53% of global shoppers are purchasing more own-label products than ever before.
As private labels enhance their design and functionality, the distinction between branded and budget options is increasingly blurred. This, combined with diluted share of voice and rising category switching, necessitates that brands intensify efforts to maintain visibility and drive volume.
Despite these challenges, brands retain significant advantages. Michaela Jay, insights manager at IGD, stated, “The battle for shopper choice is fiercely competitive, but brands are fighting from a position of strength. It’s by playing to their strengths that brands can secure lasting victory.”
The report identifies three critical levers for brand success: visibility, innovation, and emotive connection. Brands must ensure they appear where shopper attention is highest — in-store, online, or through targeted media. With rapidly evolving shopper needs, staying ahead of local and global trends is crucial. Furthermore, brands should foster emotional affinity through storytelling, values, and shared experiences.
Jay emphasised, “Execution is everything. Whether you’re a challenger brand, heritage player, or retailer, activating these levers with purpose is what cuts through the noise.”
These findings emerge as food and drink brands navigate inflationary pressures, changing consumption habits, and increased competition from agile private label players. IGD’s report provides a strategic roadmap for brands to remain relevant, trusted, and chosen. For further insights, access IGD’s full report online.
