Private label sales hit €352 billion as shoppers reshape European grocery

Private label sales across Europe reached €352 billion in 2024, establishing a new record as retailers' own brands captured 38.5% of total grocery market value. The Private Label Manufacturers Association International Council released these figures on March 24, 2025, based on 52-week sales data through July 2024 compiled by NielsenIQ across 17 national markets.

The sales milestone represents a €20 billion increase over the previous period, translating to 6% growth. Manufacturer brands grew at less than half that rate, expanding only 4% during the same timeframe. This performance gap widened the structural divide between retailer-controlled brands and traditional consumer packaged goods companies competing for shelf space and shopper attention.

Six European markets now report private label shares exceeding 40% of grocery value. Spain leads at 45.7%, followed closely by the Netherlands at 45.3%. Portugal recorded 44.9%, while the United Kingdom reached 44.1%. Belgium registered 39.8%, and Germany achieved 39.3%. Switzerland came in at 34.4%, France at 34.4%, Denmark at 33.8%, and Italy at 29.7%. Additional markets tracked include Austria at 36.9%, Czechia at 52.0%, Greece at 23.7%, Hungary at 27.9%, Norway at 23.3%, Poland at 27.1%, and Sweden at 26.6%.

The collective private label share across Germany, the United Kingdom, and France—Europe's three largest grocery markets—stood at 40%, according to the PLMA data. This concentration in major economies demonstrates private label's transformation from budget alternative to mainstream consumer choice across diverse demographic and economic segments.

Volume trends revealed even more striking shifts in shopper behavior. Total grocery market volume increased by 1% in units sold after multiple periods of decline. Private label drove this recovery with 3% volume growth while manufacturer brands declined 1% in unit sales. Consumers purchased more items at lower average prices per unit, accelerating the competitive pressure on branded goods manufacturers who traditionally commanded premium positioning.

Inflation and quality perceptions reshape purchasing

The 2024 sales surge follows patterns established during 2023, when private label reached €340 billion and 38.5% market share. According to PLMA's International Private Label Yearbook published earlier, private label turnover increased 13% in 2023 while manufacturer brands grew only 6%. The organization's research covered over 500 retailers and hundreds of food and non-food supermarket products across the same 17-market footprint.

Consumer switching accelerated as inflation rates remained elevated throughout both years. Shoppers who initially turned to private label for cost savings discovered quality levels comparable to or exceeding familiar manufacturer brands. This perception shift created sustained loyalty patterns rather than temporary budget-driven behavior, fundamentally altering competitive dynamics in categories from dairy to household cleaning products.

From a value perspective, the total European grocery market increased by €72 billion despite the 1% decrease in unit volume sales. Private label contributed 54% of this total market growth. The apparent contradiction—growing value amid declining volume—illustrates how inflation drove price increases across both private label and manufacturer brands, though private label maintained relative price advantages that attracted volume migration.

The measurement period coincided with ongoing economic uncertainty across European markets. Food inflation remained elevated through mid-2024, though rates began moderating from 2023 peaks. Households faced sustained pressure on discretionary spending, reinforcing private label's value proposition even as absolute prices rose across grocery categories.

Market concentration and competitive implications

Market share concentration varies significantly across Europe's retail landscape. Czechia demonstrated the highest private label penetration at 52.0%, reflecting that country's mature private label infrastructure and competitive retail environment. Spain and Portugal's Iberian markets both exceeded 45%, driven by retailers including Mercadona, Pingo Doce, and Continente that invested heavily in private label development and marketing.

The United Kingdom maintained its position above 44% despite possessing one of Europe's most competitive grocery sectors. Tesco, Sainsbury's, Asda, and Morrisons built comprehensive private label portfolios spanning value-tier to premium offerings, creating alternatives to manufacturer brands across virtually every category. British retailers pioneered tiered private label strategies that other European markets subsequently adopted.

Germany's 39.3% share reflects the dominant influence of discount chains Aldi and Lidl, both of which operate primarily through private label assortments. These retailers' expansion across Europe and internationally exported private label practices that reshaped competitive standards industry-wide. French retailers including Carrefour, Leclerc, and Intermarché developed sophisticated private label programs, though France's 34.4% share suggests more balanced competition with manufacturer brands than markets with higher penetration rates.

Smaller markets demonstrated diverse patterns. Sweden and Norway maintained relatively lower shares at 26.6% and 23.3% respectively, potentially reflecting different retail concentration levels, consumer preferences, or regulatory environments. Greece recorded 23.7%, the lowest share among surveyed markets, though this still represents nearly one-quarter of grocery spending directed toward retailer-controlled brands.

Categories and product development trends

Private label performance varied substantially across product categories, though detailed category-level data remains restricted to PLMA members and participating retailers. Historically, private label achieved highest penetration in commodity categories including milk, eggs, flour, sugar, and canned vegetables where brand differentiation proves difficult and quality assessments remain straightforward.

Premium private label tiers gained momentum throughout 2024. Retailers developed organic, sustainable, and specialty product lines positioned above conventional manufacturer brands on both quality and price. These ranges targeted consumers seeking distinctive products rather than value-focused alternatives, expanding private label's addressable market beyond traditional cost-conscious segments.

Innovation cycles accelerated as retailers recognized private label as strategic differentiation rather than margin enhancement alone. Product development timelines compressed relative to manufacturer brand processes. Testing protocols simplified. Unsuccessful products disappeared from shelves faster than branded equivalents burdened by marketing investments and distribution commitments. This operational flexibility enabled retailers to respond to emerging trends including plant-based proteins, functional foods, and sustainability-certified ingredients.

CPG manufacturer challenges and strategic responses

The private label surge created existential challenges for consumer packaged goods manufacturers, particularly second-tier brands lacking either market leadership or distinctive positioning. Research from Kraft Heinz's struggles with its mac and cheese franchise illustrates how cost-cutting and underinvestment left established brands vulnerable to both premium competitors and private label alternatives.

Manufacturer responses varied. Premium brands including Coca-Cola, Nestlé, and Unilever maintained investments in product innovation, marketing, and brand building, banking on differentiation to justify price premiums over private label. Mid-tier brands faced difficult choices between defending volume through promotional spending or accepting share losses while protecting profitability.

Category dynamics shifted as private label captured mainstream positioning. Manufacturers who once enjoyed default consumer preference now competed as challengers in categories where retailers' own brands established quality credentials and shopper trust. The burden of proof reversed—manufacturer brands needed to demonstrate superior value rather than private label proving acceptability as "good enough" alternatives.

Distribution leverage tilted decisively toward retailers controlling both shelf space and competitive private label alternatives. Trade spending increased as manufacturers bought promotional support, end-cap displays, and preferential placement. Retailers extracted better terms knowing that private label provided viable substitutes if negotiations stalled. This power imbalance particularly affected regional brands and smaller manufacturers lacking scale to negotiate favorable terms.

Retail media and private label interconnections

The private label surge occurred alongside explosive growth in retail media advertising. European retail media spending reached €13.7 billion in 2024, expanding 21.1% according to IAB Europe data. Manufacturer brands increasingly purchased advertising on retailer-controlled platforms to combat private label competition, creating situations where brands funded the very retailers developing substitute products.

This dynamic raised strategic questions about long-term brand building versus short-term sales defense. Retail media provided performance marketing capabilities—targeted audiences, measurable outcomes, closed-loop attribution—that traditional channels struggled to match. However, dependence on retailer platforms for customer access risked further eroding manufacturer brand equity and direct consumer relationships.

Amazon's expansion of same-day grocery delivery exemplified how e-commerce platforms leveraged private label to capture grocery spending. Amazon Fresh and the Amazon Grocery private brand competed directly with manufacturer brands while the company simultaneously sold retail media advertising to those same manufacturers. Similar dynamics played out across European e-commerce grocery platforms operated by traditional retailers.

Delivery marketplaces including DoorDash created additional competition for grocery spending. Criteo's partnership with DoorDash demonstrated how convenience and quick-commerce channels developed their own advertising ecosystems, fragmenting manufacturer brand budgets across an expanding array of retail media platforms while private label gained footholds in rapid delivery formats.

Economic projections and consumer behavior

PLMA projections suggest private label growth will moderate but continue as inflation pressures ease. Consumers developed purchasing habits during inflation peaks that will persist even as economic conditions improve. Quality perceptions shifted permanently for many shoppers who discovered private label alternatives matched or exceeded manufacturer brand performance at lower prices.

Market saturation remains distant in most European countries. Even in high-penetration markets, categories exist where manufacturer brands maintain dominant shares, and demographic segments demonstrate strong brand loyalty. Room for private label expansion persists in premium tiers, specialty categories, and product innovations where retailers previously deferred to manufacturer brand leadership.

However, growth rates face mathematical constraints as private label shares approach majority positions. Czechia's 52.0% share suggests natural ceilings may exist where shoppers value manufacturer brand variety enough to resist complete private label dominance. Balanced assortments that include both private label and manufacturer brands likely optimize retailer economics by capturing value-seeking shoppers while accommodating brand-loyal consumers willing to pay premiums.

Demographic trends favor continued private label gains. Younger consumers demonstrated less attachment to legacy manufacturer brands than older generations who formed brand preferences before private label quality improvements. E-commerce shopping reduced physical shelf cues that historically advantaged established brands with prominent packaging and facings. Digital interfaces made price comparisons more transparent, eroding manufacturer brands' information advantages.

Manufacturer brand restructuring accelerates

The competitive environment forced manufacturer brand restructuring across the CPG industry. Companies divested underperforming brands, consolidated production facilities, and reduced product variety to focus resources on market leaders. Portfolio rationalization eliminated marginal brands that couldn't generate sufficient scale to compete effectively against retailer private label alternatives.

Kraft Heinz's struggles with its mac and cheese franchise illustrated the consequences of underinvestment in brand building. Market share fell from 45% in 2022 to 39% by 2024 as both premium competitors and private label alternatives eroded the brand's dominance. The case demonstrated how cost-cutting measures depleted organizational capabilities that sustained brand equity across market cycles.

Innovation requirements intensified as manufacturers sought differentiation from private label competition. Incremental improvements proved insufficient—brands needed breakthrough products that delivered meaningful consumer benefits private label couldn't quickly replicate. Research and development spending increased for leading manufacturers willing to invest in long-term positioning, while weaker players cut costs and accepted gradual share erosion.

Sustainability and ethical sourcing emerged as potential differentiation vectors. Manufacturer brands promoted fair trade certification, carbon footprint reduction, recyclable packaging, and supply chain transparency. However, retailers quickly developed private label products with similar credentials, limiting manufacturer brands' ability to command premiums based on values-driven positioning alone. The sustainability race became table stakes rather than meaningful differentiation.

Advertising spending shifts toward retail media

Marketing budget allocations reflected private label's growing power and retail media's emergence as dominant advertising infrastructure. Traditional brand building through television, print, and digital display declined as manufacturers redirected spending toward retail media platforms that provided direct sales lift measurement. This shift accelerated the decline of conventional brand metrics including aided awareness, unaided recall, and consideration scores.

IAB Ireland's retail media research identified standardization challenges, measurement inconsistencies, and fragmented buying processes that complicated manufacturer efforts to optimize retail media spending. Despite these obstacles, brands increased allocations because retail media delivered transparent return on ad spend calculations that justified investments to CFOs questioning traditional advertising effectiveness.

Performance marketing emphasis created potential long-term vulnerabilities. Brands that optimized for immediate sales conversions risked underinvesting in consumer awareness, preference, and loyalty that previously insulated manufacturers from private label competition. The measurement ease of retail media spending masked possible deterioration in brand health metrics that manifested only over multi-year timeframes after sustained underinvestment.

Category management dynamics evolved as retailers balanced private label development against manufacturer brand revenue and traffic generation. Leading manufacturers retained category captain roles by providing analytical insights, planogram optimization, and shopper research that benefited retailers' total category performance. This collaboration model preserved manufacturer influence over merchandising decisions despite private label's growing shares.

Implications for advertising and marketing strategy

Private label's ascendance forces fundamental reconsideration of brand strategy, marketing investments, and competitive positioning. Manufacturer brands face three strategic paths: premium differentiation through innovation and brand building; value competitiveness through cost reduction and operational efficiency; or category exit and resource reallocation to defensible positions.

Premium positioning requires sustained investment in product superiority, brand storytelling, and consumer relationships. Leading brands including Coca-Cola, Pampers, and Gillette maintained this approach, banking on differentiation to justify pricing 20-50% above private label alternatives. Success demands continuous innovation that creates consumer benefits worth premium prices, supported by marketing that communicates value propositions effectively.

Value competitiveness attempts to match private label pricing through manufacturing efficiencies, simplified formulations, and reduced marketing spending. This approach accepts lower margins and positions manufacturer brands as "good enough" alternatives to retailer brands. Few manufacturers succeed with this strategy—cost structures typically disadvantage them against retailers who control production, distribution, and merchandising while capturing retail margins.

Category exit and reallocation redirects resources from losing battles against private label toward positions where manufacturer brands retain sustainable advantages. This path acknowledges that some categories commoditized to the point where brand building investments can't generate adequate returns. Capital flows instead to categories where innovation, marketing, or expertise creates lasting differentiation.

The advertising industry confronts parallel challenges. Agency models developed around manufacturer brand budgets face pressure as private label growth reduces available spending. Retail media platforms bypass traditional agency relationships, connecting retailers directly with brands. Creative capabilities matter less when performance marketing optimization drives results. Strategic planning becomes tactical execution focused on quarterly sales targets rather than long-term brand building.

Timeline

2023

• Private label sales reached €340 billion across Europe
• Market share stood at 38.5% of total grocery value
• Private label turnover increased 13% year-over-year
• Manufacturer brands grew only 6%
• Overall grocery market lost 1% in unit volume
• Private label achieved +2% volume growth
• Manufacturer brands declined -3% in units sold

July 2024

• European retail media spending reached €13.7 billion with 21.1% growth, according to IAB Europe data
• 52-week private label sales data through this period showed continued acceleration

2024 Full Year

• Private label sales reached €352 billion across 17 European markets
• Market share increased to 38.5% of total grocery value
• Sales grew €20 billion (6%) versus previous period
• Manufacturer brands grew 4%
• Total grocery market volume increased 1% in units
• Private label volume expanded 3%
• Manufacturer brand volume declined 1%
• Amazon expanded same-day delivery to over 2,300 U.S. cities, strengthening grocery competition
• Kraft Heinz's mac and cheese market share fell to 39% from 45% in 2022, illustrating private label pressure

October 2025

• Criteo partnered with DoorDash for multi-year retail media expansion, adding grocery delivery advertising competition
• IAB Ireland published comprehensive retail media research examining standardization needs

March 24, 2025

• PLMA International Council released 2024 private label performance data
• NielsenIQ analysis covered 17 European markets
• Data based on 52-week period through July 2024

Summary

Who: The Private Label Manufacturers Association International Council released the data. NielsenIQ compiled the research across 17 European national markets including Austria, Belgium, Czechia, Denmark, France, Germany, Greece, Hungary, Italy, Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland, and the United Kingdom. The analysis covered over 500 retailers selling hundreds of food and non-food supermarket products.

What: Private label sales across Europe reached €352 billion in 2024, representing 38.5% of total grocery market value. Sales increased €20 billion (6%) while manufacturer brands grew only 4%. Six markets now exceed 40% private label share: Spain (45.7%), Netherlands (45.3%), Portugal (44.9%), United Kingdom (44.1%), Belgium (39.8%), and Germany (39.3%). Volume trends showed private label gaining 3% in units sold while manufacturer brands declined 1%. The total grocery market increased 1% in unit volume after previous declines.

When: PLMA released the data on March 24, 2025, based on 52-week sales through July 2024. The measurement period coincided with sustained inflation across European economies, though rates moderated from 2023 peaks. Private label achieved similar performance in 2023, when sales reached €340 billion with 38.5% market share and 13% growth compared to 6% manufacturer brand expansion.

Where: The research tracked 17 European markets: Austria, Belgium, Czechia, Denmark, France, Germany, Greece, Hungary, Italy, Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland, and the United Kingdom. Germany, the United Kingdom, and France—Europe's three largest grocery markets—collectively registered 40% private label share. Czechia demonstrated the highest penetration at 52.0% of market value.

Why: Consumer switching to private label accelerated during inflation peaks as shoppers sought value. Quality perceptions shifted as consumers discovered retailer brands matched or exceeded manufacturer brand performance at lower prices. This created sustained loyalty beyond temporary budget-driven behavior. Private label contributed 54% of total market value growth despite representing 38.5% of sales, demonstrating its role as the primary growth driver in European grocery. The performance gap between private label (6% value growth, 3% volume growth) and manufacturer brands (4% value growth, -1% volume decline) widened competitive divides across categories. Retailers invested in private label development as strategic differentiation while manufacturer brands faced margin pressure from promotional spending, retail media costs, and distribution leverage shifts favoring retailers controlling both shelf space and competing private label alternatives.