February 27, 2023

Why does labeling play a crucial role in private label products?

Why does labeling play a crucial role in private label products?
February 27, 2023
7 mins

Labeling and Packaging

Labeling and packaging play a crucial role in the success of private label consumer products. Labeling and packaging become more important for food, beverage, home care and personal care products. They not only protect and preserve the product, but also serve as a means of communication between the manufacturer and the consumer. In this post, we will delve into the various ways in which labeling and packaging impact the sales and perception of private label products.


Labeling and packaging are important tools for communicating information about consumer goods products to consumers. Labels and packaging can help consumers identify and differentiate between different products, as well as understand the features and benefits of those products.

One of the primary functions of labeling and packaging is to provide product identification. This includes the name and brand of the product, as well as any identifying features such as size, weight, or quantity. Labels and packaging can also include information about the product's intended use or application, such as how it should be used or how often it should be used.

In addition to product identification, labels and packaging can also be used to communicate important information about the product's features and benefits. This can include information about the product's ingredients, composition, or performance characteristics. For example, a label on a bottle of laundry detergent might list the types of stains it is effective at removing, or a packaging design for a snack food might highlight the fact that it is made with all-natural ingredients.

Labeling and packaging can also be used to communicate information about a product's environmental impact, such as its sustainability or its impact on the ecosystem. This can be especially important for consumers who are interested in purchasing eco-friendly products.


In addition to providing identification, labeling and packaging also serve as a means of differentiating the product from others on the market. Private label products often have to compete with well-established brands, and effective labeling and packaging can help to make the product stand out on the shelf. The design and branding of the packaging can convey the product's unique selling points and appeal to the target audience.

By using high-quality materials and well-designed labels and packaging, a retailer can communicate to consumers that their private-brand goods are just as well-made and innovative as national brands. This can be particularly effective when the label and packaging are designed to highlight the unique features or benefits of the product, such as its sustainability, natural ingredients, or unique flavor.

Additionally, by using eye-catching and visually appealing labels and packaging, a retailer can create excitement around their private-brand products and encourage consumers to try them out. This can be especially important for private-brand goods that are new to the market or that are in a competitive category, as it can help them stand out on the shelf and differentiate themselves from other products.

Overall, the label and packaging of private-brand goods can play a crucial role in changing consumer perception and helping these products be perceived as high-quality, innovative, and exciting, rather than just lower-priced alternatives to national brands.


Labeling and packaging are important tools for preserving consumer goods products and ensuring that they remain fresh, safe, and effective. Here are a few ways in which label and packaging can help with the preservation of consumer good products:

  • Tamper-evident features: Packaging can also include tamper-evident features, such as seals, that make it easy for consumers to tell if a product has been opened. This can help ensure the integrity of the product and increase consumer confidence in its safety and quality.
  • Proper storage instructions: Labels and packaging can include instructions for storing the product properly, such as at a certain temperature or in a specific location. This can help ensure that the product stays fresh and effective for as long as possible.
  • Expiration dates: Many consumer goods products have expiration dates that are printed on the label or packaging. This helps consumers know when the product is no longer safe or effective to use.

What do retailers need to consider?

Retailers ought to consider the following questions regarding communications, marketing, and packaging of private-brand products per McKinsey’s “The potential for powerhouse Private Brands: an updated view” article:

  • What, if anything, can we change in our packaging so that it is on par with the look and feel of the leading national and private brands?
  • How can we design our packaging to convey quality and benefits (such as origin of ingredients)?
  • How are we making consumers aware of our quality parity (or advantages) versus the competition?
  • In each category, what are consumers’ primary sources of information and purchase drivers—and are we investing in those channels enough including the packaging and labeling of the product?
  • How can we harness our own channels (for example, point of purchase, store flyers) to market our private brands?


In conclusion, labeling and packaging are essential elements of private label consumer products. They serve as a means of identification, differentiation, and perception, as well as protecting and preserving the product. In addition to that they also influence the purchase decision of consumers. By considering the impact of labeling and packaging, manufacturers can create effective and successful private label products.

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