Insights / Perspectives

The Premiumization of Private Label: How Packaging Helps Brands Stay Competitive

For decades, consumers viewed private label products as low-cost, lower-quality alternatives that competed primarily on price. Today, that perception has changed dramatically. Retailers including Walmart, Walgreens, and Target have transformed their private label portfolios through investments in product innovation and premium packaging, creating brands that increasingly rival their national counterparts.

Economic pressures have contributed to the growing popularity of private label. Circana reports that U.S. private label sales have reached $330 billion, accounting for 23% of total dollar sales. At the same time, GlobalData found that 45% of U.S. consumers are buying more store brands than a year ago, driven not only by affordability but also by improved quality, greater variety, and increased availability.

For national brands, the challenge is no longer whether private label will grow—but how to remain differentiated. Packaging has become one of the most effective ways to reinforce brand value beyond price.

Reinforce Brand Equity

While private label continues to improve, national brands have advantages retailers cannot easily replicate: history, authenticity, and consumer trust. Packaging should communicate those strengths clearly and consistently. Rather than relying solely on logos or familiar colors competitors can mimic, leading brands use packaging to express craftsmanship, reinforce premium positioning, and tell compelling brand stories. Distinctive, recognizable, and ownable structural designs, visual assets, materials, and finishing techniques all help create an identity that consumers immediately associate with a specific brand.

Research from Ipsos emphasizes that national brands should focus on building strong brand equity by communicating their heritage, values, and purpose while creating emotional connections that extend beyond price comparisons. When other brands began copying their packaging, Rufus Teague partnered with Studio One Eleven to create a new, unique bottle that would stand out from the rest. We developed a moonshine-inspired, flask-shaped glass bottle that speaks to Rufus Teague’s rustic roots and creates a sense of nostalgia that’s at the heart of the brand. The package reinforces the brand's personality before consumers ever experience the product, creating recognition that extends well beyond functional performance.

Rufus Teague

Break the Commodity Mold

Consumers increasingly expect premium experiences regardless of whether they purchase a retailer brand or a national brand. As product formulations become more comparable, packaging often becomes one of the strongest opportunities for differentiation. Packaging can transform everyday products through intuitive functionality, premium materials, and memorable aesthetics. These details create perceived value and elevate products beyond commodity status.

When Booboo Bubbles launched their kid-friendly hydrogen-peroxide topical solution, the basic brown bottles and copy-heavy labels ubiquitous to the category wouldn’t do. They wanted approachable packaging that breaks category conventions, differentiates from the competition, and reflects their unique story and playful positioning. Studio One Eleven designed a bright blue bottle that mimics the shape of bubbles, with a simple, whimsical, and impactful silhouette that is also ergonomic and efficient. A debossed smiley face, embossed bubble details, playful brand elements, and a yellow cap build brand equity and support the brand’s message of happy healing. By embracing minimalism in a cluttered aisle, using bright colors in a brown category, and incorporating playful illustrations in a utilitarian segment, Booboo Bubbles sparks curiosity and stands out from the competition.

Booboo Bubbles

Design for Digital Discovery

Packaging no longer needs to perform only on store shelves but must capture attention across social media feeds, e-commerce platforms, influencer channels, and user-generated content. Numerator reports that Gen Z is among the strongest contributors to private label adoption, making digital engagement increasingly critical for national brands. Consumers today frequently evaluate products within seconds through social media content. Bold graphics, unique structures, and visually engaging design encourage consumers to photograph, share, and recommend products organically.

Exciting secondary packaging solutions can further extend brand reach. According to the Digital Marketing Institute, unboxing videos generate significantly higher engagement than traditional product demonstrations and increase purchase intent. Premium influencer kits, presentation boxes, and limited-edition packaging all create opportunities for consumers to become brand advocates. Beautyblender's horoscope-inspired influencer kit created by Berlin Packaging illustrates how packaging can become part of the marketing experience itself. Rather than simply delivering products, the branded presentation creates excitement, encourages social sharing, and reinforces the brand's premium positioning long before consumers use the product.

Beauty Blender

Packaging Is a Strategic Business Asset

As premium private label continues to reshape consumer expectations, national brands must compete on more than product performance alone. Rather than serving as a final step in product development, packaging has become a strategic business asset that helps brands differentiate, protect market share, and build long-term consumer loyalty. Berlin Packaging and Studio One Eleven help brands with packaging solutions that reinforce brand equity, create memorable experiences, strengthen emotional connections, and improve digital engagement.

By: Moira Stein
Date: August 24, 2026