Branded goods lose ground in Germany as consumers question price premiums

Name-brand products are losing ground in Germany – in some segments at a rapid pace – according to a study by Simon-Kucher. More than half of consumers now perceive these products as overpriced, with a notable share going so far as to view pricing practices as exploitative.

This shift in sentiment has been significant for the world of retail, as nearly half of all shoppers plan to rely primarily on private label brands for their weekly groceries by 2026. That constitutes a major collective shunning of name-brand products.

The Shopper Study 2026 of Simon-Kucher reveals that 57% of people believe branded products offer no discernible benefit despite their higher costs. For 39% of respondents, the price gap has become so wide that it feels like a deceptive practice. For that reason, 42% of consumers now prioritize store brands, and about one in seven people (14%) use them almost exclusively.

So, in total, it is around half of German consumers that tend to buy private labels over name-brand products. This indicates that the attractiveness of the lower prices outweigh the perceived (or real) lower quality of private label products.

“The brand promise no longer resonates with many; brand value is no longer being clearly conveyed,” says Alexander Bilsing, partner at Simon-Kucher. “The loss of trust is measurable – and it’s widespread. When more than half no longer see any benefit, the business model starts to falter.”

Indeed, experts believe this change is not a temporary reaction to economic fluctuations but rather a structural shift in how people shop and the general perception of value in products.

“Brands must take this warning sign seriously,” adds Tim Brzoska, partner at Simon-Kucher. “Now it’s crucial to rebuild trust through emotionally engaging target groups and innovations with genuine added value.”

Economic pressures

Price remains the main drivers behind this shift. This trend away from name-brand products has likely grown in recent years as inflation and geopolitical instability have seen prices rise on staple products at supermarkets across Europe.

In 2026, 59% of shoppers consider product pricing more important than they did just one year prior. As financial concerns take center stage, other purchasing criteria have fallen by the wayside. Notably, sustainability is losing its influence as a deciding factor.

Even compared with consumers from other European countries, German customers most frequently buy private labels of basic products. Spain and Denmark are the only other countries where private labels are even close to as popular in Germany, while French consumers are the most likely to reject them, according to findings from the report.

“Price is the decisive factor when doing the weekly shopping. Image, environmental friendliness, and fair trade are less convincing in a pinch than the amount on the receipt. Those who predominantly buy store brands rarely return,” says Anna Greufe, director at Simon-Kucher.

This trend is particularly evident among low-income earners, where 24% of shoppers have almost entirely abandoned branded goods. In contrast, only 11% of high-income earners report a similar level of brand avoidance.

The challenge of reclaiming brand trust

Even if name brands were to lower their prices to match private labels, they may struggle to win back their former customers, Simon-Kucher warns.

The study shows that 81% of shoppers intend to remain loyal to store brands regardless of future price drops. This suggests that the problem for major brands is not just a matter of expense, but a deeper crisis of credibility.

Many consumers are now aware that store brands often originate from the same production facilities as their branded counterparts. Because these generic versions offer comparable quality at a lower cost, the brand name is being viewed less as a status symbol and more as an unnecessary expense. Industry leaders warn that companies must now work to rebuild trust through genuine innovation and more effective communication if they hope to stop the ongoing loss of market share.