British consumers vastly overestimate supermarket profit margins

British consumers believe supermarkets generate profit margins of around 50%, despite actual margins typically ranging between 2% and 4%, according to research from the Institute of Economic Affairs (IEA).

The survey of 3,001 UK voters found that supermarkets are perceived to be among the most profitable sectors in the economy, ranking alongside airlines and property developers. In reality, food retailers operate on some of the lowest margins of any major industry.

The IEA said the findings highlight a significant gap between public perception and commercial reality, with many consumers viewing large businesses as benefiting at their expense. The report warns that such beliefs may make it harder to build support for policies designed to encourage business growth.

The results come as supermarket leaders continue to call for reduced regulatory burdens amid ongoing inflationary pressures and rising operating costs.

Single-use food packaging eyed as leading source of ocean plastic pollution

Single-use food and beverage packaging has been identified as the largest contributor to ocean plastic pollution, according to a new global study published in One Earth. Researchers evaluated more than 350 studies and analysed beach litter data from 112 countries, representing 86% of the world’s population.

The findings show that food packaging, plastic bottles, caps and lids are among the three most common types of plastic waste in 93% of countries surveyed. Plastic bags and cigarette butts were the next most frequently recorded items.

Researchers noted that the sources of plastic pollution are remarkably consistent across different regions and economies, suggesting that common products are driving a global challenge. The study also highlights evidence that policy interventions can reduce waste. Countries including Kenya, Tanzania and Mozambique, which have introduced strict plastic bag bans, have reported lower levels of related pollution.

The authors conclude that improved waste management alone is unlikely to solve the issue, pointing instead to measures such as reusable packaging systems, packaging redesign and levies on single-use products.

European grocery retail: Stabilisation with continued pressure

For the European grocery sector, 2025 brought a period of stabilisation, with shopper spending patterns broadly unchanged while retailers continued to face cost pressure.

Looking into 2026, 64 percent of grocery CEOs expect market conditions to improve or remain stable compared to 2025, yet margin pressure, strong competition and limited growth prospects remain key concerns.

The report is based on surveys of over 35 grocery executives and more than 15,000 consumers across 14 European countries, supported by market analysis conducted in early 2026. According to the interviewed CEO’s, major trends are:

  • Increased cost and margin pressure
  • Adopting AI and automation
  • Strengthening private label
  • Finding new growth opportunities
  • Downtrading of consumers

While input costs showed early signs of easing at the start of 2026, the operating environment remains sensitive to geopolitical shocks and shifts in consumer sentiment. The McKinsey and EuroCommerce State of Grocery Retail Europe 2026 report highlights how tensions, including recent developments in the Middle East, could quickly affect inflation, supply chains and demand.

Simon Wintels of McKinsey will present the findings of the report during PLMA’s pre-show seminars on Monday 18 May. Admission to the seminars and workshops is complimentary to all registered visitors and exhibitors who possess an official 2026 World of Private Label entrance badge. Click here for the detailed programme.

Packaging blamed for microplastic transfer into food

A new report from EarthAction and rePurpose Global points to packaging as a significant pathway for microplastic contamination in food and drinks. The study, From Pack to Plate, estimates that around 1,000 tonnes of microplastics enter food annually through plastic packaging, contributing to human exposure.

According to the findings, consumers ingest on average about 130mg of micro- and nanoplastics each year, equivalent to billions of particles. For high-use consumers, intake can exceed one gram annually. While packaging is not the largest overall source of microplastics in the environment, the report stresses its importance as a direct and predictable route into the human diet.

The research identifies polyethylene terephthalate (PET) bottles as responsible for around one third of packaging-related exposure. Rigid PET containers and flexible polyethylene packaging also make a notable contribution. Design features such as caps, closures and multi-component systems can increase particle release due to friction, while conditions such as sunlight exposure or UV light can raise emissions significantly. Heating processes, including hot filling or microwaving, may further increase release levels.

The report also raises concerns about health implications, noting that ingested particles can carry chemicals such as endocrine disruptors and carcinogens. It points out that many particles are small enough to enter biological systems.

EarthAction and rePurpose Global argue that better packaging design and testing under real use conditions could reduce exposure, with targeted improvements in materials and structures offering immediate opportunities for change.

Packaging blamed for microplastic transfer into food

A new report from EarthAction and rePurpose Global points to packaging as a significant pathway for microplastic contamination in food and drinks. The study, From Pack to Plate, estimates that around 1,000 tonnes of microplastics enter food annually through plastic packaging, contributing to human exposure.

According to the findings, consumers ingest on average about 130mg of micro- and nanoplastics each year, equivalent to billions of particles. For high-use consumers, intake can exceed one gram annually. While packaging is not the largest overall source of microplastics in the environment, the report stresses its importance as a direct and predictable route into the human diet.

The research identifies polyethylene terephthalate (PET) bottles as responsible for around one third of packaging-related exposure. Rigid PET containers and flexible polyethylene packaging also make a notable contribution. Design features such as caps, closures and multi-component systems can increase particle release due to friction, while conditions such as sunlight exposure or UV light can raise emissions significantly. Heating processes, including hot filling or microwaving, may further increase release levels.

The report also raises concerns about health implications, noting that ingested particles can carry chemicals such as endocrine disruptors and carcinogens. It points out that many particles are small enough to enter biological systems.

EarthAction and rePurpose Global argue that better packaging design and testing under real use conditions could reduce exposure, with targeted improvements in materials and structures offering immediate opportunities for change.

Discounters to drive grocery growth to 2030, says IGD

Discounters are set to outpace the wider grocery market through to 2030, reinforcing their growing influence on the global retail landscape, according to a new report from IGD.

The Global discount trends 2026 report forecasts the channel will grow at a compound annual rate of 4.8%, ahead of the total grocery market’s 4.0%. Growth will be driven by continued consumer demand for value, ongoing store expansion and faster innovation across operations and product development.

IGD highlights that discounters are shedding their low-cost image and evolving into more sophisticated operators, with stronger brand perception and resilience to changing shopper spending. By 2030, the channel is expected to account for 9.7% of global grocery sales, adding around £156bn in revenue.

Europe will remain the sector’s core market, with discounters projected to hold a 23.6% share. However, expansion in the US and parts of Eastern Europe is expected to accelerate growth. Major players such as Aldi and Lidl are forecast to generate combined sales of approximately £249bn by the end of the decade.

The report also identifies faster growth in variety discounters, alongside four key trends shaping the sector: enhanced value propositions beyond price, greater focus on health, improved in-store engagement, and increased transparency around sustainability.

For suppliers, IGD stresses the need for closer collaboration with discounters, particularly in areas such as private label, supply chain efficiency and value-led innovation, as the channel continues to gain momentum globally.

Amazon on top, but grocery giants dominate European retail rankings

Amazon has overtaken Schwarz Group to become Europe’s largest retailer by gross merchandise value (GMV), according to the latest European Top 50 ranking from Retail Cities. The report includes companies in the consumer goods, restaurant, specialty, fashion, and e-commerce sectors. However, the report underscores the continued dominance of grocery retailers, which occupy every position from second to twelfth place.

While Amazon’s rise reflects the growing influence of ecommerce and platform-based models, the rankings reveal that traditional food retail remains the backbone of European consumer spending. Schwarz Group, alongside other major grocers such as Aldi, Edeka and Tesco, continues to command significant scale, with the grocery sector benefiting from its essential role in household expenditure.

The 2026 report, based on Retail Cities’ business intelligence database, uses GMV to measure total ecosystem sales across physical stores, ecommerce and franchise operations. This methodology highlights the resilience of large supermarket groups, whose extensive store networks and increasing investment in digital capabilities have enabled them to maintain strong positions in the rankings.

European retail spending exceeded €4.5 trillion in 2025, growing by €162 billion, or 3.7%. The Top 50 retailers captured €103 billion of this increase—around 64% of total growth—raising their combined share of consumer spending to 41%.

Although ecommerce players recorded faster growth rates overall, no physical retail segment matched the scale and consistency of grocery. The concentration of grocers in the upper tier of the rankings illustrates the sector’s defensive strength, even amid subdued real-term growth and inflationary pressures.

According to the Retail Cities European Top 50 Report, the findings point to a dual dynamic in European retail: rapid innovation at the top, led by Amazon, alongside enduring market power among large grocery operators that continue to anchor the industry.

Discounters to drive grocery growth to 2030, says IGD

Discounters are set to outpace the wider grocery market through to 2030, reinforcing their growing influence on the global retail landscape, according to a new report from IGD.

The Global discount trends 2026 report forecasts the channel will grow at a compound annual rate of 4.8%, ahead of the total grocery market’s 4.0%. Growth will be driven by continued consumer demand for value, ongoing store expansion and faster innovation across operations and product development.

IGD highlights that discounters are shedding their low-cost image and evolving into more sophisticated operators, with stronger brand perception and resilience to changing shopper spending. By 2030, the channel is expected to account for 9.7% of global grocery sales, adding around £156bn in revenue.

Europe will remain the sector’s core market, with discounters projected to hold a 23.6% share. However, expansion in the US and parts of Eastern Europe is expected to accelerate growth. Major players such as Aldi and Lidl are forecast to generate combined sales of approximately £249bn by the end of the decade.

The report also identifies faster growth in variety discounters, alongside four key trends shaping the sector: enhanced value propositions beyond price, greater focus on health, improved in-store engagement, and increased transparency around sustainability.

For suppliers, IGD stresses the need for closer collaboration with discounters, particularly in areas such as private label, supply chain efficiency and value-led innovation, as the channel continues to gain momentum globally.

Spanish food retail hit record social media engagement last year

The Spanish food retail sector is experiencing unprecedented digital engagement, according to Acceso’s 2025 Social Intelligence report. The study analysed over 1.9 million mentions from more than 500,000 users, generating 203 million interactions, highlighting the growing importance of online reputation and marketing for leading retailers.

Not all platforms perform equally. While Google My Business, YouTube, and X capture the largest share of mentions, TikTok and Instagram deliver far higher amplification. TikTok, with only 114,700 mentions, produced over 160 million interactions, while Instagram achieved 27 million interactions from 39,100 mentions. Women accounted for 71 percent of participants in these digital conversations.

In terms of brand visibility, Mercadona dominates with just over 1.1 million mentions, followed by Carrefour (412,000), Lidl (346,500), Aldi (157,841), and Dia (33,641). The study also reflects evolving consumer preferences: discounters are increasingly popular, with loyalty influenced by services such as in-store bakeries, fresh fish preparation, and extended opening hours.

Social media is also shaping product innovation. Seasonal, limited-edition, and “viral” items, like pistachio crisps or truffle sauces, gain traction through TikTok and Instagram, alongside a growing appetite for ready-to-eat meals and health-focused products, including high-protein, vegan, and gluten-free options.

Many Germans abandon brand-name products for private label

A recent study by management consultancy Simon-Kucher highlights a shift in German grocery shopping habits, with brand name products increasingly perceived as overpriced. Conducted in January 2026 alongside market research institute Appinio, the survey of 1,000 Germans found that over half see no clear advantage in branded goods, while 39 percent even accuse brands of profiteering.

As a result, 42 percent of respondents rely primarily on private labels for their weekly shopping, with 14 percent almost exclusively purchasing them. The trend is particularly pronounced among lower-income consumers, of whom nearly a quarter largely avoid branded products, compared with just 11 percent of higher earners.

Price is becoming the dominant factor in purchasing decisions, with 59 percent expecting it to grow even more important in 2026. Conversely, sustainability and ethical considerations are losing influence, reflecting a pragmatic shift in consumer priorities.

Simon-Kucher emphasises that the move towards private labels is structural rather than cyclical. Even if branded and private label prices were equal, 81 percent intend to stick with retail brands.