European Private Label Sales Outpace Brands As Quality Perceptions Rise | ESM Magazine

Private Label
Private Label Growth Outpaces Brands In Europe, IGD Study Finds
August 05, 2026 12:35 PM
By Dayeeta Das
Share this article

Share this article

Private label continued to outperform brands in Europe with sales growth of 4.1% in value during 2025 compared with 2.7% growth for manufacturer brands, new research from IGD showed

European shoppers are increasingly choosing retailer-owned products for quality rather than price, according to the study

Close to half of shoppers (47%) said price is no longer the primary reason to opt for private-label products, while 52% believe private-label quality is as good as brands

Performance By Market

Data also showed that the UK remained one of the world’s leading markets for private labels, with own-brand products accounting for 44.3% of grocery sales in value, compared with a 39% average across Europe

Markets that reported higher levels of private-label penetration than the UK include Switzerland, Portugal, Spain and Germany

ADVERTISEMENT

Eight European markets have private-label shares above 40%, data showed

In the US, private-label sales reached $282.8 billion (€245.13 billion) in 2025, growing nearly three times faster than national brands

Sneha Haria, insight manager at IGD, said, “Our findings show private label has moved beyond its traditional role as a value alternative and is increasingly competing with brands on quality, innovation and relevance

“Shoppers are not trading down to private label products; they are actively choosing them over brands, which is why they have become one of the industry’s most important growth drivers.”

ADVERTISEMENT

Private-Label Growth

IGD noted that retailers are managing private-label programmes like brands, withinvestments in product development, packaging, innovation and marketing to create propositions that shoppers actively seek out and trust

The study highlighted Costco’s Kirkland as the world’s largest private-label brand, which generated more than $90 billion (€78.01 billion) in sales in 2025

Elsewhere, retailers like Migros and Lidl have built private-label brands that command loyalty through quality, consistency and innovation rather than low prices alone, it noted

Haria continued, “The line between private label and brands continues to blur. The most successful retailers are creating brands that shoppers actively seek out, recommend and trust.”

ADVERTISEMENT

Future Growth Area

Health and wellness is projected as one of the biggest opportunities for future private label growth

Retailers are increasingly using their own brands to enter high-growth categories such as protein, functional nutrition, supplements, gut health and broader wellness solutions, it added

Recent examples highlighted in the report include Boots’ expansion of its Wellthy range, Carrefour Belgium’s move into private-label supplements and growing retailer investment in products that support changing health needs, including consumers using GLP-1 treatments

IGD added that it believes health will play a critical role in the next phase of private-label development because it enables retailers to compete on expertise, trust and innovation rather than price alone

---

Source: www.esmmagazine.com