T. Ozbun
Research expert covering food retail and all food topics for Italy and Brazil
Private label in Europe - statistics & facts
The outsourcing of manufacturing and lower marketing costs associated with private label products, which offer a low-cost alternative with comparable quality to name brands, have driven shoppers to increasingly opt for them, especially with the recent increase in inflation. Consumers worldwide exhibit varying shopping behaviors and preferences for these types of products. Notably, private labels have garnered greater popularity in Europe and North America, constituting 36 percent of fast-moving consumer goods sales in West Europe during the second quarter of 2022, in stark contrast to Latin America’s 2.3 percent. The overall private label value share of fast-moving consumer goods in Europe has grown from 31.4 percent in 2018 to over 38 percent in 2024.
However, consumer preferences varied across individual countries. For instance, in Italy, and Sweden, fruit and vegetables, whether fresh or frozen, were popular, while in Norway and Spain, household products were among the top categories in private label market share.
Market data for Germany, and Romania also indicated other non-food categories, such as tissues, packaging, and baby products, as the leaders in private label share in those countries.
A promising future is on the horizon for private brands, driven by ongoing price hikes, the rising trend of shrinkflation, and shifting consumer behavior.
Regional differences
Private label brands held a majority share of the consumer goods market in Switzerland as of 2024. Spain and the Netherlands followed, with private labels accounting for nearly half of all FMCG sales in those countries. Private labels had a significant proportion of the fast moving consumer goods market in Switzerland, with a peak of 52.3 percent, while Spain, and the Netherlands followed closely with over 45 percent. In terms of grocery retail, private labels have claimed the largest share of the market in the United Kingdom, with over 50 percent, and in the Netherlands and Portugal, both over 45 percent. This growth in market share for private labels across the continent, particularly in a year of escalating prices rising to considerably higher levels in central and eastern Europe than in the western regions, suggest how consumers seem to be opting for low-cost alternatives to save money.Product categories
Regarding product categories, frozen and chilled food products were the most appealing to European consumers overall, as evidenced by the private label share of these two segments throughout the continent.However, consumer preferences varied across individual countries. For instance, in Italy, and Sweden, fruit and vegetables, whether fresh or frozen, were popular, while in Norway and Spain, household products were among the top categories in private label market share.
Market data for Germany, and Romania also indicated other non-food categories, such as tissues, packaging, and baby products, as the leaders in private label share in those countries.
A promising future is on the horizon for private brands, driven by ongoing price hikes, the rising trend of shrinkflation, and shifting consumer behavior.
