According to a recent study by DS Smith and consumer research institute Retail Economics, almost half of the food packaging in German supermarkets consists of avoidable plastic. But changing the packaging is proving difficult: despite growing awareness, industry efforts to shift towards sustainable solutions are hindered by competitive concerns and consumer behaviour.                                    

Key barriers include the cost of raw materials, which 40% of respondents cited as the primary hurdle. Consumer acceptance poses another challenge: 39% of industry experts are concerned that customers may resist changes to packaging.

A new PLMA study entitled "European Retailers & Manufacturers Talk About the Future: What will the private label landscape look like in the next five years?", reveals that nine in 10 private label manufacturers and retailers say that the success of private label will continue going forward. 

"Given that the share of private labels in Europe is already the highest at 39 percent of the entire food market, the reaction of experts in the industry is generating great optimism among all private label players," said PLMA President Peggy Davis.

With the optimism, there are also challenges, and day-to-day operational issues, not competitive ones, appear to be the biggest issue for both players, manufacturers and retailers. Geopolitical unrest and climate change are putting pressure on the supply chain and on the consistent quality and availability of raw materials and ingredients. Also, finding skilled personnel is a concern and could get in the way of the companies’ expected growth forecast.

Starting in February 2025, updates will apply to all novel food applications submitted to the European Commission. The European Commission tasked the European Food Safety Authority (EFSA) with updating the guidance on how to prepare and submit applications to market novel foods in the EU. This update consists of two key documents: 

The first is scientific guidance, detailing the necessary scientific data that applicants must submit. The second, administrative guidance, outlines the step-by-step process for submitting applications, managed by EFSA’s front-desk support team.

These changes are crucial for businesses, including those in the emerging sector of cell culture-derived foods. Since the initial rollout of novel food regulations in 2018, substantial data has been gathered, enabling EFSA to refine its approach and specify clearer definitions and data requirements. This evolution aims to enhance the quality of applications and improve efficiency in the review process.

Wholesaler Eurocash Group in Poland has set up a purchasing alliance among its local retail chains associates. The alliance is called Równi w Biznesie (Equal in Business) and includes 15,5000 franchise and partner stores.

This move comes in response to the intensifying price competition within the country and the growing dominance of discount chains. By analysing disparities in product offerings between supermarkets, discounters, and local stores, Eurocash aims to empower its partners with stronger negotiating leverage for better trading terms.

On the international front, the European Marketing Distribution (EMD) group has expanded its reach by welcoming South Korean Lotte group as a new associate member. Lotte is one of the largest retailers in South Korea, with branches in China, Indonesia, Japan and Vietnam. It has a turnover of around €50 billion. The retailer is also involved in convenience chain 7-Eleven. 

The use of plastic has faced increasing scrutiny across industries as consumer awareness of environmental impacts grows. Nowhere is this more evident than in food and drink packaging, a sector under immense pressure to align with evolving consumer expectations and comply with new governmental standards. To stay competitive, innovation will be crucial in finding practical, sustainable alternatives to traditional plastic.

Eco-Conscious Consumers Shift Buying Behaviours

A report by Mintel highlights that 30% of consumers would be influenced by a rating scale indicating a product's environmental impact. This shift towards sustainability has tangible effects on purchasing habits; in Germany, 36% of shoppers prioritised minimally packaged products in 2024.

The rapid rise of TikTok as a marketing tool has transformed how retailers, particularly supermarkets, engage with customers. The platform provides an avenue to highlight unique products, showcase innovative recipes in an engaging format, and even attract tourists to stores abroad that have gained popularity through viral trends.

One prime example is a simple cucumber salad recipe that amassed over 15 million views, leading to a surge in demand and cucumber shortages in supermarkets. Marks & Spencer (M&S) has also seen significant traction on TikTok, notably with its Big Daddy chocolate bar. Individual M&S stores across the UK have delighted audiences by participating in popular TikTok challenges, including lip-syncing and dancing during working hours, offering a glimpse into store culture and boosting brand visibility.

Rossmann has created a special channel for its popular own brand Isana: @isana_rossmann. The new face of the TikTok presence, which will significantly shape the channel as a content creator, is now being sought. The search for the new Isana Face is closely accompanied via the social media platform. This form of recruiting as well as the created vacancy are unique in the industry to date.

Responding to American consumers' increasing appetite for food products featuring ethnic and international ingredients and flavors, PLMA will present retailers with a record 900 suppliers from more than 60 countries at its 2024 Private Label Trade Show, November 17-19, Chicago.

The Show floor will offer 52 country and regional pavilions, another record, from North and South America, Europe and Asia, to enable buyers to source new and innovative products for today’s more discerning shoppers. New pavilions include Morocco, Poland, Vietnam, Portugal and Costa Rica. There are also expanded groups from Australia, Canada, Chile, France, Greece, Guatemala, Italy, Peru, Spain, and Ukraine.

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.