The UK economy is recovering, and with wage inflation higher than price inflation, shoppers have more money in their pockets and feel they can afford brands again, says IRI.
But whether this feeling of optimism continues will be decided at the polls tomorrow as the country votes on whether the UK should remain a member of the European Union or withdraw. If the UK leaves the EU, the uncertainty could make consumers want to save money again, says IRI, and private label could benefit.
Meanwhile the country's biggest retailer Tesco gave its private label ranges a recent branding revamp.
Although it came under fire for using fictitious local-sounding farm names,which were seen to mislead consumers over the provenance of products sourced from as far afield as the US, but Eales said it could stimulate more branding in the produce and fresh categories where private label is dominant.
"The point here is that provenance is important to consumers these days and is increasingly used as a way to add a more premium aspect to a product. Increasingly private labels need to move away from the value end and towards the premium ranges to increase the value of the sector."
In general, British retailers are reducing the range of products on offer in order to cut costs and simplify their offering with an average reduction of 5% in 2015, rising to 10% for Tesco, and private label ranges have bore the brunt of this.