Private label continues to strengthen across Europe and has now reached a threshold that would have been hard to predict just a few years ago: in the six main European packaged FMCG markets - France, Germany, Italy, the Netherlands, Spain and the United Kingdom - private label now accounts for 50% of sales by volume. This figure confirms a market shift that is now clearly visible both on supermarket shelves and in retail strategies.
For the wider food & beverage sector, this trend deserves close attention. The expansion of private label is reshaping relationships between manufacturers and retailers, creating interesting opportunities for third-party producers and, at the same time, forcing established brands to reassess their positioning more carefully.
Europe increasingly oriented toward private label
Private label's weight is not uniform across the continent, but the overall picture points to steady growth. Among the most developed markets, Spain stands out with a volume share of 59%, followed by the Netherlands at 56%. The United Kingdom and Germany both stand at 52%, France at 46%, while Italy remains at 36%.
Italy's figure is still lower than that of the other major European markets, but that is precisely why it suggests there is still room for further growth. At the same time, broader European surveys focused on the sector show that private label is also gaining ground in value terms, supported by more structured assortments and growing consumer acceptance.
Price matters, but it is no longer the only lever
Affordability has played a key role in the acceleration seen in recent years. Inflation, rising living costs and greater attention to everyday spending have led many households to rethink their habits and priorities. However, it would be too simplistic to interpret the phenomenon only in terms of saving money.
Over time, retailers have invested in quality, product development, packaging and more clearly positioned ranges. Today, private label covers segments that go well beyond entry-level products: premium lines, health-focused products, organic references, functional offerings, more sophisticated ready meals and items with sustainability-related benefits.
Consumer perception has changed as well. In many cases, private label is no longer seen as a second choice, but as a reliable and consistent option, suitable both for everyday purchases and for categories where taste, convenience and specialization play an important role.
Where growth is most visible
The expansion of retailer-brand products is affecting many sectors, but in food some signals are especially noteworthy. Growth is particularly evident in high-turnover categories, where consumers buy frequently and compare price, pack format and perceived quality more directly.
The most dynamic segments include snacks and confectionery, fresh products, packaged goods, soft drinks and dairy products, as well as, in some markets, wellness-related lines. This broadening of scope shows that private label has moved well beyond essential items, entering categories where proposition, assortment and the ability to interpret changing consumer tastes are all crucial.
What this means for food manufacturers
For food manufacturers and processors, the growth of private label has a dual meaning. On the one hand, it increases competitive pressure on their own brands, especially when shelf space is limited and price sensitivity remains high. On the other hand, demand is growing for manufacturing partners able to develop reliable products for modern retail.
For many companies, this can represent a concrete opportunity. Expertise in food processing, raw material quality, gastronomic tradition, and the ability to develop recipes and regional specialties are all valuable assets in a private label context as well. Retailers are looking for suppliers that can guarantee continuity, high production standards, flexibility and speed in product development.
In this context, producing for private label does not necessarily mean giving up a company's industrial value. In many cases, it can become an effective channel for improving capacity utilization, strengthening commercial relationships and reaching markets that might otherwise be harder to access.
The challenge for food brands
For established brands, the challenge is both to defend market share and to define more clearly why consumers should choose them. Promotional activity remains important, but it cannot be the only long-term response in a market where retailers are building increasingly credible and well-structured ranges.
This makes factors such as product innovation, brand recognition, clear positioning, the ability to serve specific niches and the strength of the brand story linked to origin, supply chain or production know-how increasingly important. In some cases, it will also be crucial to work more effectively on exports, specialist channels or categories where differentiation remains stronger.
Retail, data and new market balances
The growth of private label is also taking place in a retail environment that is changing rapidly. The use of data, the evolution of e-commerce, personalized promotions and more advanced category management allow retailers to build increasingly targeted assortments. In this context, private label benefits from more precise management and stronger control across the entire shopping experience.
For manufacturers and brands, this means operating in a market that is more selective and faster-moving. It requires a solid understanding of trends, the ability to adapt and a proposition that is genuinely relevant for both the retailer and the end consumer.
A signal that should not be underestimated
Reaching 50% by volume in the main European FMCG (Fast-Moving Consumer Goods) markets signals a structural rebalancing in consumer goods. Private label has consolidated its role and will most likely continue to shape assortment development in the years ahead.
For companies in the food sector, watching this evolution closely is essential. Whether a business operates with its own brand or as a manufacturing partner for retail, the direction of the market now requires greater flexibility, a stronger ability to interpret trends and a clearer understanding of the value each company can bring to the supply chain.
