February 2026

Industry News
Supermarkets making uneven progress on 'sustainability'

A new Europe-wide benchmark of supermarket sustainability performance suggests that while some retailers are beginning to align with climate and nutrition goals, progress across the sector remains inconsistent. Superlist Europe Environment 2026, led by think tank Questionmark with a coalition of environmental and food system organisations, assesses 27 major supermarket groups across eight European countries.

The benchmark focuses on two areas with significant implications for the food value chain: alignment of climate strategies with the Paris Agreement and efforts to shift protein sales towards more plant-rich diets. Transparency, target-setting and disclosure play a central role in how retailers are assessed.

Retailers in Germany and the Netherlands emerge as the strongest performers overall, with discounter Lidl consistently ranking highly across multiple markets. Several leading chains, including Albert Heijn, REWE, Jumbo and Aldi Süd, have published climate commitments and begun addressing the balance between animal- and plant-based protein sales.

However, the data also indicates that absolute greenhouse gas emissions remain a challenge. Only a small number of supermarkets report sustained emissions reductions since they began disclosures, while emissions across much of the sector have continued to rise. Differences in reporting approaches further limit comparability, reinforcing calls for more standardised, Paris-aligned reporting.

Protein transition is highlighted as a critical lever for reducing Scope 3 emissions. Around two-thirds of supermarkets acknowledge their role in influencing dietary shifts, and some now disclose the proportion of plant-based versus animal-based protein in sales. German and Dutch retailers, along with Lidl in several countries, are among the most advanced in this area. By contrast, a third of retailers in France, Poland, Spain, Sweden and the UK have not yet taken action to shift protein sales towards more plant-based options.

The benchmark also finds that only seven supermarkets have published detailed roadmaps outlining how they plan to lower emissions. For manufacturers and retailers alike, the findings underline the growing importance of credible transition planning, data transparency and collaboration across the value chain as sustainability expectations continue to rise.

FMCG partners should prepare for oncoming agentic AI

Retailers and manufacturers are being urged to prepare for agentic AI, as autonomous systems begin to reshape how grocery shopping decisions are made. New research from IGD suggests the shift could be more disruptive than previous waves of digital change.

Unlike generative AI, which responds to prompts by producing content or recommendations, agentic AI operates independently. It can plan, decide and execute actions on a shopper’s behalf, from building a basket to completing a purchase. It resembles the Dash Button, which 15 years ago let consumers reorder laundry detergent at the press of a button—but it failed and was quickly withdrawn.

Food and grocery shopping is particularly suited to automation due to its habitual and repetitive nature. Agentic AI is already capable of automating replenishment, comparing prices and availability across retailers, optimising choices based on health, budget or sustainability preferences, and completing checkout without human input. In markets where adoption is advancing, autonomous shopping assistants and AI-driven meal planning are moving beyond pilots into real-world use. This autonomy has major implications for how products are discovered, chosen and bought.

As basket decisions increasingly shift from people to algorithms, traditional retail touchpoints risk losing influence. Product choice becomes less about shelf visibility or impulse and more about how brands are surfaced, ranked and selected by AI agents. For manufacturers, this raises the risk of “algorithmic invisibility” if products are not optimised for machine decision-making.

While adoption levels remain low today, IGD warns that uptake could accelerate quickly once trust is established. Convenience tends to drive habit, and habit creates long-term lock-in.

Lidl Netherlands to end bulk discounts that confuse shoppers

In a bold move, Lidl Netherlands has announced it will end multi-buy and bulk discount promotions on food products, such as “buy one get one free” or stacked deals that require buying several items to unlock a reduced price. The retailer says this change is intended to make unit pricing more transparent and prevent customers from being misled by seemingly attractive offers that obscure the real cost of an item. Lidl argues that these volume promotions often inflate regular prices and encourage unnecessary purchases.

This decision is significant in the Dutch grocery market, which is traditionally dominated by aggressive promotional mechanics. Dutch supermarkets, including Albert Heijn and Jumbo, routinely run thousands of bulk deals annually to drive footfall and sales. Consumer organisations like the Consumentenbond and Questionmark, have been critical of such promotions, linking them to overconsumption, food waste and less transparent pricing.

A retail expert has calculated that if all Dutch supermarkets would stop bulk discounts, regular prices would be 8 percent lower and 1 to 2 percent could be saved on supply chain costs.

Lidl’s broader international operations continue to balance low everyday prices with regular discount campaigns rather than removing multi-buy pricing entirely.

Extended UK sugar tax aims to improve consumer health

The UK Soft Drinks Industry Levy is a sugar tax on pre-packaged soft drinks that came into force in April 2018. It was designed to reduce sugar consumption in beverages and improve public health by encouraging manufacturers to reformulate products with lower sugar content. 

Official outcomes to date show that the levy has been effective at reducing sugar content: average sugar in taxed beverages has fallen by nearly half since the introduction, leading to reductions in calories consumed and associated improvements in children’s health, among others, lower rates of tooth decay and obesity-related problems. Consumer acceptance has remained strong, and overall soft drink sales volumes have grown, reflecting demand for lower-sugar alternatives.

The UK government has now announced that the sugar tax will be extended to more high-sugar products, including pre-packaged milk-based drinks and milk alternatives with added sugar, and to lower the sugar threshold from 5 g to 4.5 g per 100 ml. These changes will take effect on 1 January 2028, giving manufacturers time to reformulate products to avoid the levy.

This extension is expected to bring additional drinks into scope, for example flavoured milk, sweetened yoghurt drinks and chocolate milk drinks. Plain, unsweetened milk and milk-alternative drinks are not and will not be included.

Across the European Union, there is no harmonised, EU-wide sugar tax, but several member states already impose national excise duties on sugar-sweetened beverages, such as France, Norway and Belgium, with varying structures and rates. Discussion at EU level about broader sugary drink taxation has occurred, including studies suggesting health benefits of an EU-wide approach, but any bloc-wide levy would require political agreement among member states.

In the stores

Dia launched a product range based on single-serve and single-portion formats to respond to the the growing number of one-person and two-person households. The range includes snacks, pantry staples, prepared meals and ready-to-eat options, all in individual portions or smaller sizes.

E.Leclerc's Marque Repère is introducing the "Tablette d'Or" (Golden Tablet), a cocoa-free alternative that is approximately 15% cheaper and boasts a 60% lower carbon footprint compared to a traditional milk chocolate bar.

Aldi is introducing a new “high in fibre” logo on the packaging of staples, deli products, nuts, and pasta that are high in fibre. The rollout will take place in phases throughout the year.

Meal box delivery service HelloFresh is opening temporary pop-up stores in railway stations in Europe. In January, in London, in February in Antwerp, and in March, in Utrecht, commuters can pick up a meal box from the shelf, pay for it, and take it home.

Esselunga has redesigned the packaging of its private label biscuit line. The new graphic layout makes the main ingredient immediately visible and recognizable, and it now takes center stage on the packaging.

Carrefour France is introducing environmental labels on nearly 70 of its private-label Tex brand clothing items. It claims to be the first French food retailer to launch such an initiative, seeking to increase transparency for customers.

Edeka has replaced its previous dental care private label with a new brand: diadent. The range got a new look and includes toothpaste, mouthwash, floss picks, toothbrushes, and many other products. For designated products, paper packaging replaces the previous plastic blister pack – a benefit for the environment.

Albert Heijn aims for 10 percent of its entire own brand range to be organic by 2030. This raised target means the retailer still needs to achieve significant growth. Compared to 2025, this represents a 40 percent growth.

Online supermarket Knuspr more than doubled its private label sales in 2025. More than half of all orders contained at least one private label product. The company plans to expand the range to up to 1,500 items in the coming months.

Covirán strengthened its private label in 2025 with the launch of 37 new products, bringing the total to approximately 1,400 products in Spain and 1,250 in Portugal.

The packaging renewal of SPAR’s dynamically growing “free” product line has been completed, which supports the quick orientation of customers following a special diet with a more modern, more transparent visual. 

M&S has doubled its ‘Only… ingredients’ range, with the launch of 12 new lines including sausages, chipolatas, burgers, meatballs, yoghurts, porridge and condiments.

Market research
Greeks opt for private label, home grown products

Greek shoppers are increasingly choosing private label products for value while maintaining trust in “Made in Greece” items for quality, according to Professor Georgios Baltas of the Athens University of Economics and Business.

The January 2026 survey reports private label now accounts for nearly 40% of household purchases, with high satisfaction and perceived quality. Most items are produced locally, reinforcing supermarket ranges and supporting domestic manufacturers. Professor Baltas highlights that this trend contributes to economic growth and employment.

Rising prices are shaping buying behaviour: over half of consumers report cutting shopping budgets. Shoppers largely blame multinational corporations for price rises, reflecting awareness of oligopolistic market pressures.

Supermarket loyalty is split, with price, quality, promotions, and Greek origin as key drivers. Private label products are now recognised as dependable, cost-effective alternatives without compromising quality.

French shift to private label at expense of big brands

Private label products are increasingly dominating French shopping baskets, challenging major brands across most FMCG categories, according to an exclusive survey conducted by Appinio for LSA magazine. Emilie Dumas, research lead at Appinio, highlights that private labels have strengthened their position in the context of price pressure and constrained purchasing power.

The survey, conducted in late 2025 with a representative sample of 1,000 French consumers, shows private labels now account for 36% of FMCG sales by value and 47% by volume. Over 80% of respondents regularly buy private label food products, 70% household items, and 52% beauty products. Three-quarters report being familiar with private label ranges, while 86% say these products are easy to identify in stores.

Price and value for money remain the key drivers, but perceived quality has improved significantly, narrowing the gap with major brands. Food and home care private labels are seen as competitive alternatives, while in health and beauty consumers still favour national brands. Loyalty is increasingly store-driven, reinforcing private labels’ legitimacy as reliable, high-value options.

Private label now more than half of Spanish FMCG spend

Private label products now account for 54% of consumer goods spending in Spain, positioning the market among Europe’s most advanced in retailer brand penetration, according to a new report from EAE Business School. The study, co-authored by Professor Alejandro Alegret, highlights a clear shift in consumer perception, with private labels increasingly viewed as smart, trusted purchasing choices rather than low-price alternatives.

The research shows strong acceptance: 70% of Spanish consumers report satisfaction with private labels, while more than three-quarters cite strong value for money. On average, store brands are perceived to be 22% cheaper than manufacturer brands, reinforcing their appeal amid inflationary pressure and tighter household budgets.

Private labels are particularly dominant in everyday categories such as dairy, packaged food and household cleaning, while manufacturer brands retain strength in beverages. Trust, innovation and sustainability now underpin private label growth, with retailers investing in premium, organic and functional ranges.

Spain’s experience illustrates a mature private label model, where scale, brand consistency and local relevance are reshaping competitive dynamics across European FMCG retail.

Private label keys non-food retail strategy in Germany

Private labels are emerging as a key strategic lever for retailers, particularly in non-food categories, according to a joint analysis by Boston Consulting Group and Inverto. The research finds that well-developed retailer brands can deliver higher margins, broaden customer reach and strengthen differentiation in increasingly competitive markets.

Consumer perceptions continue to shift in favour of private labels. In Germany, 66% of shoppers now choose retailer brands for their value for money, with independent product tests in some non-food categories rating private labels on par with, or ahead of, leading manufacturer brands. Younger consumers are proving especially receptive, driven in part by social media trends such as “dupe” content, which has normalised alternatives to premium brands.

BCG partner Marcus Kroth highlights a clear change in both retail strategy and consumer behaviour. Leading retailers are managing private labels as full brands, supported by data-led assortment planning, emotional brand positioning and consistent visibility across physical and digital channels.

Inverto identifies procurement and supply chain excellence as critical success factors. Retailers using AI-driven demand forecasting report planning accuracy improvements of 10–20%, supporting availability, reducing markdown risk and reinforcing the long-term profitability of non-food private labels.

PLMA News
Understanding your customer on an emotional level

Too many marketing decisions are still driven by what the company likes or wants—rather than by what its customer actually values. While many organisations proudly claim to be customer-centric, the reality often tells a different story. In marketing and sales, this disconnect can be a costly business mistake.

Ask a consumer why they buy a particular product and you are unlikely to get a reliable answer. Often, people simply don’t know—or they rationalise their choice after the fact. In truth, purchasing decisions are largely driven by emotion. This is where effective marketing and sales succeed: by understanding and triggering the emotions that influence consumer choice.

Store design, product layout, colours, fonts, language and messaging all play a role in shaping emotional responses. When used well, these elements attract customers and build preference. Crucially, this applies not only to end consumers, but also to B2B customers. The same emotional drivers are at work, and the same marketing and sales tools can be applied.

However, not all customers are the same.

That is why Buylogic has developed a customer segmentation model designed specifically for marketing professionals. Unlike traditional segmentation approaches based on demographics such as age, gender, income or geography, this model is rooted in psychology, market and empirical research, communication theory and neuroscience. It focuses on what truly motivates customers to buy at an emotional level—whether they are consumers or B2B decision-makers.

On 25 March, from 12:30 to 13:30 CET, Sanne Dollerup of Buylogic will host an online webinar exploring emotional customer segmentation and the emotional drivers behind purchasing decisions.

The session is part of PLMA’s Lunch & Learn series and is free for PLMA members and retailers. To request a registration link, click here.

Events
PLMA's Lunch and Learn Webinar

PLMA’s Lunch and Learn webinars are designed exclusively for private label manufactures (PLMA members), retailers and wholesalers who wish to expand their knowledge of the private label business. PLMA organises several webinars a year, each focusing on different topics. 

 

25 March 2026
Online
Registration Details
World of Private Label International Trade Show

PLMA’s 2026 World of Private Label will be held at the RAI Amsterdam Convention Centre on Tuesday 19 and Wednesday 20 May. During two days, the show will be the focal point of the largest concentration of private label professionals in the industry. 

19-20 May 2026
RAI Amsterdam Convention Centre
Details