Brand loyalty on decline amid big shift in shopper behavior

Fifty-five percent of global consumer respondents report “rising living costs” as a top concern.

As consumers grapple with inflation, tariff uncertainty and a difficult macro-economic environment, they are prioritizing cost over brand loyalty.

The overwhelming majority (77%) of consumers are actively changing their purchase behavior in response to price increases, according to EY’s “Future Consumer Index,” which surveyed more than 20,000 consumers across 26 countries. Slightly more than a third (34%) no longer consider brands when making purchasing decisions, with 54% of respondents only buying branded products when they are on sale.

The increasing adoption of private label products is reshaping consumer perception, making store brands the preferred alternative to traditional branded options — 67% say private label satisfies their needs just as well as branded products. Thirty percent of respondents say they no longer consider brands at all when making purchasing decisions.

“Consumer behavior has historically shifted during economic downturns, but today’s changes appear to be more fundamental,” said Rob Holston, EY global and Americas consumer products sector leader. “Unlike past cycles — where consumers returned to familiar brands post-crisis — prolonged inflation, supply chain disruptions and geopolitical instability have reshaped habits permanently.”

Retailers appear to be tapping into this shift to private label, with 64% of respondents reporting seeing more private labels on shelves and 59% stating they see more private label items positioned at eye level. More than a third (36%) of respondents state they will continue purchasing store brands and do not intend to return to traditional branded products.