Over half of Indian consumers now prefer private labels, finds EY report

In a clear signal of shifting consumer priorities, a new report by EY reveals that 52% of Indian shoppers are now switching to private labels — store-owned brands that are increasingly seen

as offering better value and quality than traditional branded products.

The EY Future Consumer Index (FCI) – India edition highlights that Indian consumers are rethinking the role of brands in their lives amid economic caution, prioritising affordability, pack

sizes, and tangible value over brand loyalty. A significant 70% of respondents believe that private labels are just as effective as their branded counterparts, while 69% say these labels

help them save money.

“Consumer behaviour has traditionally evolved in response to changing economic situations, but the current shifts appear to be more permanent,” said Angshuman Bhattacharya, partner and

national leader, Consumer Products and Retail Sector, EY-Parthenon. “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.”

Indeed, 74% of consumers reported seeing more private label products in stores, with 70% noticing that these items are increasingly being placed at eye level — indicating a strategic push

from retailers. This rise in visibility and availability coincides with changing consumer expectations around brand innovation. While many traditional brands have attempted to reposition

themselves through new formulations or ingredients, 34% of consumers still view these changes as cost-cutting rather than meaningful innovation.

Despite this shift, the door is not closed for established brands. Nearly half — 47% — of those surveyed said they would be willing to return to branded products if they offer superior

taste, quality, or performance. A similar proportion, 44%, said they would consider switching back for better value for money or if product performance improves, even if it comes at a

premium. Categories like clothing and footwear (58%), beauty and cosmetics (51%), and personal care (45%) are currently viewed as the most innovative by consumers, driven by investment in

research and development.

AI is also playing a growing role in consumer choices. According to the survey, 62% of Indian consumers now make purchase decisions based on AI-generated recommendations, and 58% say AI has

improved their shopping experience overall. 

“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,”

Bhattacharya added.