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.

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.

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.

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.

Shift in European shopping: more trips, more stores, smaller baskets

A study by NielsenIQ shows that grocery buying patterns in Europe are becoming more fragmented in how consumers shop, not just in how many large retail chains operate. French households, for example, now visit an average of nine different grocery outlets over a given period, even if they rely on one or two anchors for most of their spend.

At the same time, broader industry observations indicate that shoppers in many markets are making more frequent trips with smaller baskets. In France, inflation‑linked behaviour has driven households toward tighter control of budgets, more frequent shopping and smaller purchase baskets per occasion. Kantar data also suggest that consumers are buying fewer items per visit but visiting stores more often, reflecting changing routines formed during recent economic cycles.

These patterns appear across several Western European countries, as consumers spread their trips across supermarkets, proximity formats and online channels, and increasingly select specialist outlets for specific needs. For manufacturers and private label teams, this means success depends on meeting shoppers at more occasions with right‑sized packs, tailored offers and strong visibility across formats.

'Sustainability' innovation seen increasing in new PL offers

According to a Euromonitor report “Voice of the Consumer: Sustainability Survey”, sustainability is becoming central to product development, even amid global SKU rationalization. In 2025, 63% of private label launches included at least one sustainability claim, surpassing the 60% average across all products. This reflects consumer demand for affordable, eco-conscious options and retailers’ push to position private label as credible, value-driven competitors.

Private labels are addressing traditional barriers—higher prices, unclear labels, and distrust—by making sustainable products affordable, transparent, and credible. Between Q1 and Q4 2025, private label’s share of e-commerce sustainable launches grew from 16% to 29%, with half of the top 10 sustainable launches now being private labels.

Innovations include hybrid meat-plant products (Albert Heijn, Aldi, Lidl NL), upcycled food lines (Coop Switzerland), and affordable vegan skincare (Natural Grocers, US), proving greener options can match or undercut conventional prices. Transparency is also rising: verified labels for recyclability, local sourcing, and natural ingredients are helping build trust, exemplified by Holland & Barrett and Carrefour’s programmes.

Private label is turning sustainability into an everyday expectation—combining value, accessibility, and credible claims—reshaping the competitive landscape and driving mainstream adoption.

IGD: Private label gains ground amid changing consumer behaviour

More than half of global consumers (53 per cent) are buying private label products more frequently than ever, according to IGD’s latest report, How brands can drive growth in challenging times. The report highlights how rising competition and changing shopper behaviours are reshaping the brand landscape.

Private labels have widened the price gap, reaching 86 per cent in 2025, while improved design and features are blurring the distinction between branded and own label products. Brands are also contending with diluted share of voice and increased category switching, making it more challenging to maintain sales volume.

At the latest PLMA Lunch & Learn session, IGD’s Sneha Haria defined these trends as drivers of private label evolution in the future:

  1. Staying on-trend: Shoppers are seeking seasonal, globally inspired, and limited-edition products. It is crucial to balance speed and innovation with operational possibilities.

  1. Cross-collaboration: Strategic partnerships can help suppliers to differentiate and grow. These collaborations can strengthen retailer relationships and support long-term category development.

  1. Responsible shopping: Private labels should showcase their health and sustainability credentials to stay relevant to shoppers and help retailers hit their health and sustainability targets.

  1. Beyond food: Private labels must find the sweet spot between quality and price to encourage shoppers to switch from long-established national brands.
'26 Trends: Comfort, authenticity, high-tech wellness out front

Euromonitor International has revealed the top global consumer trends for 2026, offering a roadmap for brands navigating an increasingly complex market.

Consumers are redefining priorities. Comfort and simplicity are now essential as stress and uncertainty rise, driving demand for products that soothe, simplify, and inspire confidence. At the same time, self-expression is a powerful force—half of consumers actively seek products that reflect their unique identity.

Wellness is going professional. Scientific, premium-grade solutions are no longer niche; nearly half of consumers are willing to pay more for validated, high-tech health and beauty products. Meanwhile, East Asian brands, led by China, are reshaping global commerce with innovation, affordability, and seamless digital experiences—forecasted exports reaching 3.4tn euro by 2026.

For executives, the takeaway is clear: success hinges on emotional reassurance, authentic brand engagement, credible wellness offerings, and frictionless digital journeys. Brands that deliver on these fronts will not only meet consumer expectations—they’ll set the standard.

Global pet food sales to reach €227B by 2034, driven by premiumisation and humanisation trends

The global pet food market is projected to rise from €129 billion in 2024 to €227 billion by 2034, according to a new report by Allied Market Research. The study, Pet Food Market – Global Opportunity Analysis and Industry Forecast, 2025–2034, forecasts a compound annual growth rate of 6.1%, reflecting continued expansion fuelled by rising pet ownership, humanisation of pets, and growing demand for premium and functional nutrition products.

Dogs remain the dominant pet type, and dry food continues to lead the category due to convenience and longer shelf life. Specialised pet shops held the largest share of sales in 2024, though online channels are growing rapidly.

Market growth is underpinned by shifting household structures, higher disposable incomes, and increased focus on animal health. Around 95% of pet owners reportedly view their pets as family members, driving interest in premium, organic, and functional food options. 

However, the report also highlights key challenges, including pet obesity and product recalls. Over half of US pets are now considered overweight, while contamination incidents have underscored the need for stronger safety and traceability measures. 

Regionally, North America leads the market, supported by high pet ownership rates and strong demand for nutritious, protein-rich, and low-calorie foods. In Europe, growth is driven by smaller households and increasing investment in health-oriented and organic options, particularly in Spain, the Netherlands, and Poland.

Key players are focusing on innovation through functional ingredients, sustainable packaging, and personalised nutrition, as well as expanding through strategic mergers, partnerships, and direct-to-consumer models.

The findings point to a decade of strong growth potential shaped by evolving consumer expectations, digital transformation, and continued premiumisation across global pet food markets.

Germans demand trustworthy labels, prize those with 3d party endorsement

A study by Simon-Kucher in Germany highlights that two out of three consumers actively consider food labels when shopping – but only selected labels inspire real trust and willingness to pay more. Conducted with 1,000 participants, the research found that 71% factor certifications into their purchasing decisions, with “organic” (75%) and “fair trade” (67%) among the strongest motivators. Product claims such as “sugar-free” (75%) and “natural ingredients” (80%) also influence choices, particularly among health- and sustainability-oriented shoppers.

While consumers are open to paying a premium for products that align with their lifestyle, price tolerance remains limited. Around 70% would accept higher prices for organic products, but overall, only 46% of consumers are prepared to spend significantly more. High markups are tolerated mainly for specific religious certifications, such as halal or kosher.

However, trust is the decisive factor. One in three consumers doubts sustainability and climate-related claims, and suspicions of greenwashing sharply reduce willingness to pay. Younger shoppers, especially Gen Z, are driving demand for credible, transparent labelling but are also the most critical.