Circana suggests now is the time to be brave and innovate

Circana’s report “Europe’s Innovation Pacesetters 2025” analyses over 75,000 new product launches and product innovations in 2024, covering food and beverages, household, personal care, baby and pet products. Point of sale data were used from 6 EU countries: France, Germany, Italy, the Netherlands, Spain and the UK.

Key findings are:

  • The Covid Effect: Five years on, the aftershocks of the pandemic are dramatically re-shaping the innovation landscape. In 2024, the number of innovations declined by 20% in comparison with 2023. NPD has fallen since the pandemic, with between 15% and 17% fewer launches each year.

  • Inflationary impact shows a mixed picture with sales down in most countries but pockets of positivity. In 2024, around 62% of new product launches struggled to deliver sales over €100,000 per SKU, compared to an average of 80% in previous years. The UK and the Netherlands saw the highest inflation of the EU6 in 2024 and therefore bearing the brunt of innovation declines in terms of value sales. 

Three main trends emerge from Circana’s analysis:

  1. Smaller manufacturers have been highly innovative, and their launches are very effective in terms of driving sales
  2. The reinvention of older, heritage brands is significant
  3. Private label products fill the innovation gaps in the market
IGD: Traditional physical stores are here to stay

“The hyper-connected store” report from IGD reveals that physical retail is being reinvented, not replaced. Despite widespread predictions of decline, traditional formats — supermarkets, discounters and convenience stores — are expected to retain 94% of global grocery market share by 2029, generating around €8.9 trillion in sales. Crucially, physical stores are forecast to add a further €1.6 trillion between 2024 and 2029 — proof that bricks-and-mortar retail remains essential, provided it embraces transformation.

The “hyper-connected store” puts technology at the heart of retail evolution. Advances in automation, AI, computer vision and robotics are already improving efficiency, reducing labour costs and elevating the shopper experience. IGD identifies three interlinked “power zones” for success: enhanced shopper experiences, empowered store teams and improved operations. Together, they form a digital flywheel that drives profitability, productivity and loyalty.

For suppliers, connected stores promise real-time data on demand, inventory and promotional performance — enabling faster activations, reduced waste and stronger brand execution. Shoppers gain from accurate pricing, product visibility, easier navigation and smoother checkouts. Meanwhile, retailers benefit from unified commerce, linking stores, ecommerce, loyalty, and data platforms into one seamless ecosystem.

Says IGD, omnichannel shoppers spend two to four times more than single-channel customers — reinforcing the importance of integration.

The report closes with a call to leadership: appoint a store digitalisation lead, redesign stores around profitability, unify data, and upskill managers in digital fluency. For Europe’s private label sector, the message is clear — collaboration, data sharing and innovation will determine who wins in the era of the hyper-connected store.

What food means to Generation Alpha

Family mealtimes are losing significance for Generation Alpha (born 2010–2025). According to a recent study by Cologne-based research institute Innersense, food for this age group is less about shared rituals and more about self-expression, experimentation, and self-optimisation.

Children increasingly eat alone or with friends, often preferring snacks or home-baked treats to traditional meals. While parents still provide guidance and healthy options, they aim to minimise conflict and grant independence, frequently relying on influencers, brands, and digital tools as modern parenting aids.

The study identifies six key motives shaping Gen Alpha’s approach to food:

  • Self-care over bonding – Food provides comfort and autonomy, though branded treats still symbolise closeness.
  • Fluid routines – Mealtimes adapt to varied schedules and family structures, with familiar brands offering stability.
  • Identity building – Cooking and baking, inspired by digital platforms, allow creative self-expression.
  • Self-optimisation – Nutrition is seen as a tool for managing performance, with protein-rich and low-calorie choices gaining ground.
  • Influence and advocacy – Children often drive healthy habits, armed with arguments from social media.
  • Customisation – Products tailored to moods and identities resonate strongly.

Ultimately, food has become a platform for orientation, control, and belonging. While Gen Alpha is heavily influenced by parents, their habits reveal a generation growing up individualised, digitally shaped, and conscious of health and sustainability. Brands that recognise these values can strengthen trust and engagement.

IGD reveals its global private label trends

In its latest report IGD asserts private label has evolved beyond just offering shoppers value. Ranges are now key, strategic levers enabling retailers to drive innovation, enable collaborations, and deliver sustainable solutions to help them stand out.

Highlights:

  • Globally, private label accounts for 45.7% of total grocery volume and is growing twice as fast as brands (1.4% vs 0.7%).
  • Europe will lead the way for private label globally in 2025, followed by North America, which will be the fastest growing region.
  • In some European markets, private label value share has dropped year-on-year as brands fight back with promotions.
  • Sub-brands continue to emerge, echoing last year’s momentum, as health and sustainability trends shape innovation.
  • Private label continues to lead by swiftly adapting to trends. Collaboration helps to deliver distinctive, consumer-driven product innovations quickly.
EU: Share of consumer spending on retail declines

The share of private consumption allocated to retail – rather than savings, services, or leisure – continues to decline across the European Union. In 2024, this trend persisted for the third consecutive year, with EU citizens spending just 32.6 percent of their disposable income in retail. Croatia recorded the highest share, with nearly every second euro spent in retail. These insights come from a study by NIQ Geomarketing, offering a comprehensive overview of retail trends across Europe.

Although purchasing power and retail turnover are rising in Europe, the proportion of consumer spending directed toward retail has been steadily declining for the past three years. In 2024, retail accounted for just 32.6 percent of total private consumption, underscoring this ongoing trend. However, regional differences remain significant. Consumers in Eastern European countries, in particular, allocate a considerably larger share of their purchasing power to retail.

Discounters girding for strong global growth

According to new research from IGD, the discount grocery retail channel is expected to expand by €191.6 billion globally between 2024 and 2029, making it the fastest-growing format in physical grocery retail.

Europe continues to be the core market for discounters, with all of the top 14 countries by market share located in the region. By 2029, discount retailers are projected to account for more than 23% of total grocery sales across Europe.

Central and Eastern Europe, along with Portugal, are identified as key growth markets, supported by high levels of discount penetration and strong forecasted sales growth through 2029.

Globally, the discount segment is gaining momentum, with new entrants, geographic expansion by established discounters, and increased strategic focus by retailers on their discount formats.

NIQ says consumers are redefining their brand preferences

While private labels were once viewed mainly through the lens of availability, consumer perceptions are shifting toward value, quality, and community support, finds a new report from NIQ: “Finding Harmony on the Shelf: 2025 Global Outlook on Private Label and Branded Products.

The report says “the brands that succeed will be those that recognise the strengths each brings to consumers – whether it’s value and local relevance or quality and prestige – and embrace opportunities for growth together.” Consumer perception of private label products is completing a dramatic turnaround. As retailers invested in quality and improvements, private label sales reached new heights.  

Success for one kind of label doesn’t have to come at the expense of others. Every player can win a little and grow categories if the reins of control shift in favour of collaboration. The report reveals what is driving brand shifts and how harmony among private and name brands can expand sales.

Retailer apps in Germany are widely used, save money

A study by the consulting firm Simon-Kucher reveals that 80% of customers in Germany already use retailer apps, with this figure reaching as high as 96% in the drugstore sector. The survey, which involved 1,000 consumers, explored how app usage influences shopping behaviour.

The primary motivation for using these apps is saving money. Over three-quarters of respondents (83.2%) said the apps make them more aware of discounts, while 73.1% reported that they are able to make cheaper purchases through the apps. About half of the participants indicated that they shop more frequently and in greater quantities using retailer apps. Additionally, most respondents noted that the apps improved the efficiency of their shopping experience and overall satisfaction.

These apps also encourage users to explore new products. Features like product recommendations (55.7%) and discounts (64.4%) prompt users to try new items, although discounted products tend to be added to carts more often than those simply suggested by the app.

In terms of in-app purchase incentives, personalized discount coupons on specific items, volume discounts, free products, and bonus points were the most favoured. In contrast, digital flyers and competitions were significantly less appealing to users.

2025 food and drink trends revealed

Mintel has published its global food and drink trends report for 2025. The researchers explored what it is that influences consumer behaviours and attitudes toward food and drink. The experts predict that four topics will prevail for consumers:

Fundamentally nutritious. The emergence of weight-loss medications like Ozempic will redefine consumer perceptions of ‘food as medicine’ from added functional ingredients to meeting daily essential nutrient needs.

Rule rebellion. Embrace consumers as ‘perfectly imperfect’ beings who are hungry for brands that help them ‘break the rules’ in food and drink.

Chain reaction. As disruptions to the food supply become more frequent, the industry will need to encourage consumers to accept and trust the new origins, ingredients and flavours that will emerge locally and globally.

Hybrid harvests. Food and drink companies will need to demonstrate how technology and agriculture work together to benefit consumers, farmers and the environment.

In EU, Germans spend the least on food

According to a study by NIQ, consumers in Germany spend less of their income on food, health and care than in any other EU country. Despite the increase in prices, the share of these expenditures in private consumption last year was 13.4 percent, lower than in all other 26 countries.

Consumers have recently been paying more attention to prices and taking advantage of offers more often. According to NIQ, Germany recorded the strongest increase in promotion purchases in Western Europe, with an increase of 14 percent.

The share of retail in private consumption fell again in the EU in 2023. According to market researchers, this is due to a normalization of consumer behavior. During the Corona pandemic, consumers spent their money mainly in retail because cultural activities, events and travel were often not possible.