The Growing Popularity of Private Label Packaged Food in Latin America

In Euromonitor’s Voice of the Consumer: Lifestyles Survey, in 2025, 73% of Latin American consumers were concerned that the cost of everyday purchases was increasing. The uncertain and challenging macroeconomic environment, consumers’ increasing need to cut costs, and the transformation of the retail landscape are causing an expansion of private label products in packaged food across Latin America.

Expansion across price segments and functionality

Private label brands in Latin America are expanding their presence across a wider range of price segments and product functionalities. For example, Carrefour launched the brand Bulnez in Argentina in 2024, which is aimed at competing in a lower price segment than the Carrefour Classic brand. At the other end of the spectrum, premium private label products focus on offering greater added value, with higher quality ingredients, design and packaging, and attributes such as functionality, health and wellness, and sustainability. An example is Taeq, a health-orientated private label brand from the group GPA, available in Colombia (through Grupo Éxito) and Brazil (through Pão de Açúcar).

Economic conditions fuel demand for affordability

In recent years, Latin America has faced low economic growth and high inflation. In 2024, in particular, real GDP growth was just 2.3% with year-on-year growth slowing in a number of major regional economies. This macroeconomic environment has benefited private label, which offers products which increasingly are comparable in terms of quality with leading brands but at prices generally 10% to 15% lower.

Argentina has experienced significant inflation in recent years, contributing to a regional annual inflation rate exceeding 15% between 2022 and 2024. In 2024, sharp increases in rent and utility costs – such as electricity, gas and water – further reduced disposable income for food purchases. Meanwhile, in Colombia, the introduction of a new tax on ultra-processed foods or those with very high levels of sugar, salt, or fat (“impuesto saludable”) in November 2023 has also driven up product prices, with tax rates set at 10% in 2023, 15% in 2024, and 20% from 2025 onwards.

Consumers turn to private label under financial pressure

When asked about their future spending habits, approximately 16% of respondents in the region intended to increase their private label purchases over the next 12 months. Brazil leads the region, with 20% of respondents, which is particularly promising for private label, given that it is the largest economy in the region but currently has the lowest value share of private label.

Additionally, around 28% of consumers surveyed in Latin America intended to increase their visits to discount stores. This is relevant, since discounters is the channel where private label has the highest value share. The country-specific outlook for private label is also promising, as the two largest economies in the region – Brazil and Mexico – lead with 31% of respondents intending to increase their visits to discount stores in the future.

Grocery retail is shifting towards value and convenience

The grocery retail landscape in Latin America has seen a significant transformation. Discounters are thriving by offering strong value-for-money and proximity – an appealing combination for consumers. Their bargaining power allows them to offer lower prices, especially through private label. This demand for affordability has also benefited warehouse clubs, which similarly offer private label.

At the same time, convenience stores are expanding to meet the growing demand for time-saving options, with private label products becoming a larger part of their offerings. In contrast, traditional retailers – which lack private label options – are in decline.

The future of private label packaged food in Latin America

Private label in Latin America still offers substantial growth potential in packaged food, as highlighted by the considerably higher value shares seen in Western Europe and North America. This is particularly evident in categories such as dairy products and alternatives, and cooking ingredients and meals, where the gap with Western Europe, for example, reaches approximately 30 percentage points.

Retailers will continue to expand their private label offerings, covering a broader range of price segments by introducing more affordable second-tier brands, as well as premium private label, while also incorporating health and wellness attributes.

Real GDP growth forecasts for Latin America’s two largest economies, Brazil and Mexico, indicate modest growth of 1.9% and 0.8%, respectively, in 2025. Low economic growth in leading economies will strain budgets, boosting private label demand as consumers cut spending.

Discover deeper insights in our report, The Rise of Private Label Packaged Food in Latin America