Retailers have begun to take a specific event that occurs in a supermarket aisle very seriously. A customer stops in front of two nearly identical goods. With its recognizable emblem, decades of advertising memory, and a price that is about thirty percent more, one carries a brand that they have known since childhood. With ingredient lists that are occasionally shorter, packaging that has significantly improved over the last five years, and quality reviews that stand up surprisingly well in independent testing, the other carries the store’s own brand.
Ten years ago, the majority of consumers would have chosen the well-known brand without hesitation. That choice is no longer made automatically in 2026. Nowadays, around half of supermarket units sold in major European marketplaces are private label products. The premium for brand loyalty, which helped create some of the biggest consumer businesses of the 20th century, is gradually vanishing.
| Brand Loyalty Shift — 2026 Snapshot | Details |
|---|---|
| Primary Study | Customer Loyalty Index (CLI) by SAP Engagement Cloud |
| Edition | 5th annual report |
| Private Label Share in Europe | Approximately 50% of grocery units |
| Emerging Phenomenon | “Trend Loyalty” replacing “True Loyalty” |
| Viral Product Trust | 45% more likely to trust if it goes viral |
| TikTok vs Traditional Ads | 33% trust social media trends more |
| Influencer-Driven Purchases | 41% bought products promoted by influencers |
| Loyalty to Products, Not Brands | 64% |
| Gen Z Trend-Driven Purchases | 43% admit buying due to social trends |
| Case Study Brand | Molton Brown |
| New Study Launch | B2B Buyer Loyalty Index (BLI) |
| Quoted Expert | Fred Reichheld, creator of the Net Promoter Score |
| Reference Body | Bain & Company Loyalty Research |
| Risk Category Most Affected | Mid-tier consumer brands |
The change in figures that are worth considering is captured in SAP Engagement Cloud’s fifth annual Customer Loyalty Index. For the first time, genuine loyalty—the kind that resulted in generational purchase patterns spanning decades—has stagnated in the UK. Something the study team has dubbed “Trend Loyalty” has taken its place. If a product gets viral, 45% of consumers are more likely to trust it. Thirty-three percent have greater faith in social media trends and TikTok than in traditional ads or even company websites.
Influencer-promoted products have been purchased by 41% of consumers, which is almost twice as high as the average rate for any other type of promotion. The most startling statistic is that 64% of consumers now claim to be devoted to particular products rather than the companies that make them. There is an inversion of the hierarchy. The unit of trust is now the product. The brand is now practically incidental.
It is impossible to ignore the trend because of its generational component. Nearly twice as many Gen Z consumers—43 percent—admit to purchasing a product just because it was popular on social media. Twenty percent of consumers claim that their brand loyalty stems from a brand’s popularity. If a popular product doesn’t live up to expectations, 25% of consumers will become less devoted.
Reading these figures closely gives the impression that something more transactional and emotionally charged has taken the place of the entire idea of long-term devotion. Anyone who has observed a younger consumer browsing TikTok before to purchasing food or cosmetics will notice the trend. Brand history is not a factor in the choice. It’s about what’s effective at the moment, what appears appealing, and what other people are discussing this week.
The state of the economy is very important. What customers value has altered as a result of the financial anxiety that has been prevalent over the past few years. While price is still important, saving money is no longer the only consideration. It’s about the logical conclusion that store brands have caught up and that, in many categories, paying more for a well-known brand no longer results in a significant quality difference.
The most intense pressure is being placed on mid-tier brands, which are situated between the value tier and the premium luxury category. They were predicated on the idea that customers would be willing to pay a little bit extra for the familiarity of a well-known brand without expecting outstanding quality. That presumption has been demolished in silence. Either you acknowledge that you will lose business to trending alternatives and private brands, or you use real differentiation to justify the price. A comfortable middle no longer exists.
The corporate response has been inconsistent. By revealing their supply chains, streamlining their ingredient lists, and lowering the barrier to consumer inquiries and responses, several firms have embraced transparency. Others have made significant investments in real-time customisation, viewing every consumer interaction as a chance to show value rather than a way to win their allegiance. One of the more intriguing case studies in this change is the high-end beauty company Molton Brown.
The brand has combined online activity, in-store interactions, and campaign answers into a single profile by using SAP technology to create a connected customer perspective. Based on a customer’s actual history, boutique associates might provide tailored recommendations. The company’s data indicates that during important promotional periods, campaign conversion rates increased by double digits. The company hasn’t made an effort to win back the previous level of loyalty. Instead of relying on habit, it has attempted to create a new sort based on relevance.
The new reality is aptly captured by Fred Reichheld, the Bain Fellow who developed the Net Promoter Score and has spent decades researching the true nature of loyalty. He contends that loyalty entails providing clients with an incentive to return, grow, and recommend. Every interaction with a brand, its people, or its systems should deliver value that customers would genuinely miss if it disappeared. Compared to the previous definition, which frequently relied on inertia and emotional linkage, that definition is more difficult to meet. The new loyalty demands ongoing evidence of worth rather than merely historical assertions.
The aspect that many observers have overlooked is the B2B dimension. SAP Engagement Cloud has launched the first B2B Buyer Loyalty Index alongside the consumer-focused CLI, recognising that business purchasing decisions are following similar patterns. Procurement managers are increasingly evaluating suppliers on real-time performance rather than long-standing relationships.
The cost of switching is decreasing. The premium attached to incumbency is shrinking across enterprise software, industrial equipment, and professional services. Anyone who has worked in B2B sales over the past three years will recognise the pattern. Conversations on renewal are more difficult. Competitive evaluations are more frequent. The old assumption that a five-year relationship would automatically lead to a sixth year has eroded.