PRIVATE LABEL THRIVES IN EUROPE
An overall growth of private label shares is visible in Europe across 17 countries including Scandinavia and CEE countries, according to the data of NielsenIQ. Compared to 2021, the value share in 2022 grew +1.2% to an impressive 37% of the grocery market in Europe which represent 302bln euros. Consumers in Europe clearly turned to private label acknowledging the quality and price value.
NielsenIQ surveyed 17 markets for PLMA’s International Private Label Yearbook and observed an increase for retail brands in 16 out of the 17 countries, the only exception is Switzerland that reported a decrease in the overall grocery purchase, including a slight decline in private label (-0.4% vs last year). European markets remain however some of the biggest Private Label markets globally, 11 markets sustained their market share position well above 30%, and 4 markets remained above 40%.
The highest growth countries in private label share are the Czech Republic (+3.5%), Portugal (+2.9%), Spain (+2.2%) and Hungary (+2.2%). Switzerland remains the country with the highest share across the 17 countries tracked. The share of Switzerland in 2022 is 51.6%, the only country with a share higher than 50%.
Europe’s largest markets, Germany, United Kingdom and France, have a collective Private Label share of 38.5% in 2022, this share grew 1.1% vs last year. The highest share growth for the largest markets is visible in ambient food, pet food and paper products, all categories grew over 1%pnt in share.
Spain, with a market share of 43.3%, and Portugal, with 39%, combined reported after the Czech Republic the highest share growth, which grew with +2.6% driven by perishable food and homecare. Italy with a market share of 28.2% maintains the steady growth that is seen in the past years supported by the highest category growth in frozen and ambient food.
Germany and Portugal are the two markets that reported growth in all product departments, food and non-food.
In Belgium and the Netherlands, the private label share combined grew with +0.9%, the highest growth for the 2 countries is visible in ambient food and paper products. A couple of categories show a decline in private label share with the biggest decline visible in Belgium in health care -4.3%, however in the Netherlands healthcare shows a slight growth in Private label share.
Also the Scandinavian countries show growth in Private label share, together the countries grew +1.1% in share with the highest growth reported in Denmark of +1.8%. Growth of private label share is visible in all categories. The highest share growth is visible in homecare with an average growth of +2.4%.
In Eastern Europe the private label share is growing as well, highest growth in private label share is visible in perishable food with an impressive 7.2% growth in CZ and +4.5% in pet food in Hungary. A decline is visible in alcoholic beverages. In Austria the private label value market share rises +1.2% to 35.4%. The two categories that stand out with the highest growth are perishables and paper products.
In Greece the market share reaches nearly 23%, a growth of 1.3% vs 2021. The growth was registered in all categories, with the highest growth in confectionery and snacks, with the exception of alcoholic beverages which slightly declined with -0.4%.
According to NielsenIQ’s data, perishable and frozen food, paper products, and ambient food are the top 3 categories of Private Label value share with an average of 50% representing in total 212.8 billion in Euros across the 17 European countries tracked.
The private label sales grew with 25 billion euros across the 17 European countries tracked. Perishables and ambient food have the highest contribution to this growth.
WHAT ARE PRIVATE LABEL PRODUCTS?
Private label products encompass all merchandise sold under a retailer's brand. That brand can be the retailer's own name or a name created exclusively by that retailer. In some cases, a retailer may belong to a wholesale group that owns the brands that are available to only the members of the group.
WHAT PRODUCTS ARE SOLD AS PRIVATE LABEL?
Major supermarkets, hypermarkets, drug stores and discounters today offer almost any product under the retailer's brand. Private label cover full lines of fresh, canned, frozen, and dry foods; snacks, ethnic specialties, pet foods, health and beauty, over-the-counter drugs, cosmetics, household and laundry products, DIY, lawn and garden, paints, hardware and auto aftercare.
WHAT ARE THE ADVANTAGES OF PRIVATE LABEL?
For the consumer, private label represents the choice and opportunity to regularly purchase quality food and non-food products at savings compared to manufacturer brands, without waiting for promotional pricing. Private label items consist of the same or better ingredients than the manufacturer brands, and because the retailer's name or symbol is on the package, the consumer is assured that the product meets the retailer's quality standards and specifications.
WHO MAKES PRIVATE LABEL?
Manufacturers of private label products fall into three general classifications:
- Large manufacturers who produce both their own brands and private label products.
- Small and medium size manufacturers that specialise in particular product lines and concentrate on producing private label almost exclusively.
- Major retailers and wholesalers that operate their own manufacturing plants and provide private label products for their own stores.
A UNIQUE ORGANISATION FOR A UNIQUE INDUSTRY
The private label business is unique. It has it's own needs and objectives. That's why there is a trade association that serves the industry exclusively. Founded in 1979, the Private Label Manufacturers Association is the international trade organisation dedicated to the promotion of 
private label brands. With offices in Amsterdam and New York, PLMA represents more than 3,500 manufacturers and suppliers worldwide, ranging from companies that specialise in private label to those that produce private label products in addition to their own manufacturer brands. PLMA offers trade shows, programmes, and services that are specifically designed for the industry.