South Africa has a R98 billion private label sector

Private labels generated sales over R98 billion in 2024 as South Africa’s largest retailers rapidly grow their offerings to drive down costs and provide enhanced quality. 

This was revealed by NielsenIQ (NIQ) as part of its Finding Harmony on the Shelf: 2025 Global Outlook on Private Label & Branded Products, which studied consumer perceptions of private labels. 

The report analysed global consumer attitudes around private label and branded products, as well as the catalysts driving these trends globally and regionally.

It showed that private labels grew sales value in South Africa by 7.5% in 2024 and accounted for around 18% of total fast-moving consumer goods (FMCG) sales value for the year.

According to the report, four in ten (39%) South African respondents are likely to purchase more private label products than before. 

This reflects strong growth in a market where private labels have enjoyed a notable presence on most retailers’ shelves for many years. 

Demand for private label products has surged in response to the elevated inflation of the past few years, as consumers seek value. 

Retailers typically offer greater value for money through their private label products as they control more of the supply chain and can drive down costs. 

Some retailers also offer products with enhanced quality through their private labels, improving their margins and giving them more room to pass on cost increases to consumers. 

This is only set to grow in the coming years as demand for private label products continues to rise and is outstripping supply in some cases. 

Nielsen’s report showed that nearly two-thirds (65%) of South African consumers would buy more private label products if a larger variety were available.

“Private label brands in South Africa are booming as consumers adapt their shopping habits to current market conditions,” Zak Haeri, MD for NIQ in South Africa, said.   

“Local retailers and manufacturers have found creative ways to collaborate and address the evolving needs of the consumer with white label offerings that span from value products for price-conscious spenders to luxury offerings for premium customers.” 

Haeri added that there is room for private labels to enter new categories like liquor and baby goods and continue refining their offerings to appeal to different income and generational groups. 

What is driving private label growth in South Africa

Nielsen’s report showed that consumer perception of private label products and their quality has significantly improved, while global brands also see strong performance. 

The key trend driving the growth of both private label and branded products in South Africa is the demand for increased value from consumers amid financial pressure. 

South African consumers have a positive perception of the value for money and quality offered by private label brands. 

Around 72% of respondents viewed them as good alternatives to name brands, and 75% perceived them as offering good value.

On the other hand, retailers have also pushed the idea that private label products are of a higher quality, making them status symbols among consumers. 

Private label brands are no longer targeted solely at price-sensitive consumers in South Africa, with premium house brands from leading retailers winning market share from named brands.

However, consumers are still divided as to whether they are willing to pay more for private label products compared to name-brand alternatives. 

Nielsen’s data showed that two-thirds of South African consumers trust private label brands as they are endorsed by the retailers, and 45% say store brand products are of higher or equal quality than name brands. 

They are, however, divided exactly 50/50 about whether private label products are worth paying more for.

Close to half of South African consumers say they are likely to treat themselves by upgrading to a premium-brand product, with younger generations – millennials (62%) and Gen Z (58%) – exceeding that average.

South Africans are also increasingly willing to try private label alternatives, with nearly 60% saying they are actively expanding their brand purchases across categories. 

The same percentage says that brand or store brand is irrelevant, choosing products based on necessity rather than preference.