Private labels across the Middle East and Africa are evolving into a central retail strategy, moving beyond price positioning to drive differentiation, consumer trust and greater retail control. Momentum is increasingly visible across UAE retail networks such as Spinneys and Sharjah Cooperative Society.
In this feature, Ben Daniel speaks with Delfim dos Santos, Philip Bencini and Umesh Chopra, who share practical, on-ground perspectives on how private labels are scaling across the GCC—and the resulting implications for packaging, sourcing and supply chain control across food, beverage and broader FMCG categories.
Private labels—once seen as entry-level options—are now established contributors to retail performance. In mature markets, they occupy significant shelf space and continue to build consumer trust.
Across MEA, this progress is gathering pace, supported by changing buying behaviour, cost pressures and the expansion of organised retail.
Retailers are placing greater emphasis on quality, consistency and brand identity. Packaging and clearer positioning are supporting this shift, allowing private labels to compete more directly with established brands.
Value drives adoption
Value-conscious consumers remain central to private label growth across MEA. Purchasing decisions are increasingly based on a balance of price, quality and overall usefulness, rather than brand recognition alone. Inflation and rising living costs have reinforced this behaviour.
Consumers are also better informed and more willing to try alternatives. They compare product features, review information and assess packaging before purchase. This is particularly evident among middle-income and price-sensitive segments, where private labels are gaining wider acceptance.
Sourcing strengthens retail control
Alongside consumer trends, structural changes within retail are supporting private label expansion. Retailers are using private labels to improve margins and reduce reliance on multinational suppliers, particularly in categories with limited differentiation.
This provides greater control over pricing, promotions and supply chains. Direct sourcing models—often involving manufacturers of established brands—are helping deliver comparable quality at lower cost.
As a result, the perceived gap between private labels and branded products continues to narrow. Access to data is also playing an important role. Retailers are using real-time insights to refine assortments, optimise pack sizes and respond more effectively to local demand.
Beyond grocery expansion
Private labels are no longer limited to core grocery categories. While food and beverage led early growth, expansion is now visible in areas such as personal care and home care. However, progress in non-food categories is more measured.
Consumers tend to be more cautious where brand loyalty and perceived product performance are stronger. In these segments, packaging and presentation play an important role in building confidence.
Retail scale accelerates adoption
The continued growth of modern retail infrastructure across the GCC is supporting wider adoption of private labels. Larger store formats, broader assortments and improved logistics are increasing product visibility and distribution efficiency.
Control over shelf space and merchandising is strengthening in-store presence. At the same time, scale advantages support cost efficiencies, direct sourcing and improved supply reliability.
Packaging drives differentiation
Packaging is playing an increasingly important role in private label development. It influences both cost and consumer perception, making it central to competitiveness.
Retailers are adopting more material-efficient formats, including lightweight flexible packaging, to manage production and logistics costs. Sustainability is also a growing priority, with increased use of recyclable materials and reduced-plastic solutions.
Design remains equally important. Clear labelling, structured layouts and consistent branding help improve shelf visibility and communicate quality. In higher-value segments, packaging is also used to signal premium positioning through materials and finishes.
Balanced growth continues
Private labels across MEA are expected to maintain steady growth, supported by ongoing demand for value and the continued expansion of retail infrastructure. Gains are likely to be strongest in essential categories where affordability and availability remain key.
At the same time, established brands will continue to lead in innovation-driven and specialised segments. The market is becoming more balanced, with private labels and branded products competing across quality, price and packaging.
Sharjah Cooperative Society perspective: Umesh Chopra on data-led private label growth, pricing dynamics and shifting UAE consumer demand
Private label growth in the UAE has been steadily building over the past five to six years, particularly following the post-COVID shift towards local sourcing and supply chain resilience.
Retailers have significantly expanded their private label portfolios, with many categories recording double-digit growth compared to slower expansion in branded segments.
A key driver behind this trend is the increasing importance of consistency and availability. In categories where supply can be unpredictable, private labels offer a more stable and dependable alternative.
Consumers are placing greater value on products they can rely on being available every time they shop. Once they are satisfied with quality and performance, they are less inclined to switch, reinforcing repeat purchase behaviour and long-term loyalty.
Pricing continues to play a critical role.
Private label products are typically positioned 15–25% lower than branded equivalents, depending on the category. Despite this lower price point, retailers are able to maintain profitability, making private labels an effective tool for balancing margins while remaining competitive.
The UAE market, however, presents a unique dynamic. With a highly diverse consumer base and strong attachment to international brands, private label growth is expected to be steady rather than rapid.
At the same time, demand is increasingly polarised, with growth concentrated in both value-driven and premium segments, while the middle segment gradually contracts. Private labels are strengthening their role across value and premium segments.
Spinneys leads: Philip Bencini on private label quality, sourcing and retail growth
His career spans multiple retail formats, where he has contributed to building competitive private label portfolios aligned with changing consumer expectations.
At Spinneys Dubai LLC, his focus includes strengthening quality, value and brand positioning, alongside sourcing efficiency and supplier partnerships.
Ben: How is the shift from price to quality in private labels impacting consumer trust and growth in the UAE and GCC?
Philip: Private label is no longer just about price. The focus is now on delivering a balanced value proposition, where quality and price go hand in hand. As product standards improve and brand identity strengthens, consumers begin to view private label as a reliable choice rather than an alternative. This builds trust, driving repeat purchases and loyalty. In brand-conscious markets like the UAE, this shift is also encouraging greater investment in product development and packaging.
Ben: What is driving private label growth, and how is it reshaping consumer expectations?
Philip: Growth is driven by consumers seeking reliable, high-quality products at good value. Expectations now go beyond affordability to include safety, transparency and consistency. Clean-label positioning and clear communication are increasingly important, as they build trust. Private labels are therefore expected to deliver both product integrity and brand credibility alongside competitive pricing.
Ben: How do private labels help retailers manage pricing, sourcing and stability amid cost and supply chain pressures?
Philip: Private labels enable better control through direct sourcing, reducing intermediary margins. This allows more predictable pricing and improved control over retail selling prices. Managing the supply chain end-to-end also supports consistent availability and quality. Long-term supplier partnerships further enhance stability and flexibility during market fluctuations.
Ben: What is driving strong private label growth, and how does it support long-term retail strategy?
Philip: Growth is driven by continuous development—expanding product ranges while improving quality and packaging. As consumer trust builds, private label becomes a stronger differentiator on the shelf. The region still has significant headroom for growth, and private label will continue to support customer loyalty and long-term business strategy.
Ben: How do you structure a private label portfolio across value and premium tiers while maintaining quality and margins?
Philip: A structured approach is essential, with the middle segment remaining the core, balancing quality, value and margins. At the same time, value and premium tiers address different customer needs. Portfolio decisions are guided by insights and supported by strong supplier partnerships to ensure consistency and profitability.
Ben: How are you improving packaging sustainability while managing cost pressures?
Philip: Sustainability efforts focus on improving packaging through recyclable materials, alternative formats and practical design changes. Collaboration with manufacturing partners enables the adoption of scalable solutions, balancing environmental goals with cost and operational requirements.
Ben: How is private label growth evolving in non-food categories, and what key challenges remain?
Philip: Non-food categories offer strong potential but grow more gradually due to higher consumer caution and brand loyalty. Packaging and presentation play an important role in building trust and encouraging trial. Despite challenges, opportunities remain as confidence in private labels expands.
Ben: How are established brands responding to the rise of private labels in the region?
Philip: Private labels are increasing competition by challenging brands on quality, innovation and positioning—not just price. This is pushing established players to strengthen differentiation and justify pricing, creating a more competitive and dynamic market.
From Carrefour private label leadership to GCC retail strategy: Delfim dos Santos on packaging and sourcing shifts
With senior leadership roles including Global Vice President Retail at Majid Al Futtaim, Delfim dos Santos provides insights into how packaging, sourcing and supply chain decisions are influencing private label development across the GCC and IMEA region.
Q: What major developments do you foresee in primary and secondary packaging over the next 3–5 years?
Primary packaging is expected to shift decisively towards mono-material and recyclable structures, supported by the integration of smart traceability features such as QR codes and NFC. These technologies will enhance transparency and consumer engagement while improving supply chain visibility.
At the same time, secondary packaging will evolve towards lighter, right-sized corrugated solutions and reusable systems designed for omnichannel distribution.
This transformation is closely linked to the rapid growth of private labels. As these products continue to expand across categories, there is increasing demand for packaging that delivers strong shelf presence while maintaining cost efficiency.
Packaging will need to balance functionality, sustainability and visual impact, particularly as private labels compete more directly with established brands.
Q: How is the shift to local procurement reshaping the packaging supply chain in the GCC and beyond?
There is a clear move away from long global supply cycles towards more agile, regional sourcing models. Traditional lead times of up to 90 days are being replaced by cycles of 15 to 20 days, allowing faster response to market demand.
Increasingly, a significant portion of packaging for private labels is expected to be sourced within the IMEA region over the coming years.
This approach is driven by practical considerations rather than protectionism. Regional sourcing reduces costs, shortens time to market, lowers carbon impact and improves resilience against supply chain disruptions and currency fluctuations.
At the same time, the regional packaging market is experiencing steady growth, creating opportunities for local manufacturers to scale operations and strengthen their role within the supply chain.
Q: What opportunities does this create for packaging suppliers outside the GCC, particularly in India and Africa, and how do regulations influence this?
The opportunity is both immediate and significant. Suppliers in India are already well positioned in areas such as mono-material films and flexographic printing, while African manufacturers offer advantages in paperboard and recycled PET solutions.
Regulatory developments are accelerating this shift. Measures such as single-use plastic restrictions and extended producer responsibility frameworks across the GCC are driving demand for compliant, recyclable and lower-impact packaging formats.
These regulations act as catalysts, encouraging faster adoption of sustainable solutions.
Suppliers that can combine cost competitiveness with technical capability, food safety compliance and faster approval timelines are likely to become preferred partners as private label programmes expand.
Q: What is your key advice to packaging manufacturers in the IMEA region looking to capture this opportunity?
The key shift is from being a supplier to becoming a strategic partner. Packaging manufacturers need to move beyond transactional roles and engage more closely with retailers and brand owners.
This includes investing in co-development capabilities, improving speed in design and approval processes, and ensuring full traceability across the supply chain.
As private label growth continues alongside regulatory and market shifts, there is a clear opportunity for manufacturers who can deliver speed, sustainability and strong shelf impact to secure long-term partnerships.
Key takeaways: Private labels move to the core of retail strategy
• Private labels have evolved into strategic growth drivers, competing on quality, value and brand credibility
• Consumer trust is increasingly shaped by consistency, availability and product performance
• Control over sourcing, pricing and supply chains is strengthening retailer competitiveness
• Packaging is becoming central to differentiation, cost efficiency and premium positioning
• Growth is expected to be driven by data, local sourcing and closer partnerships across the value chain