Private Label Across Europe: 2024 Figures Show Another Successful Year
Europe's private labels: a growing force in retail
Is Lion’s mane gaining popularity as a functional ingredient?

Lion’s mane is quickly gaining traction as a popular functional ingredient in food and beverages. As awareness of its claimed health benefits grows, manufacturers are witnessing a significant rise in demand for products containing this unique mushroom.

Lion’s mane is an edible mushroom native to Asia, Europe, and North America. It is easily recognizable by its long, white, shaggy spines that resemble a lion’s mane, which is how it earned its name. This striking appearance is one of the key features that make it stand out as an ingredient in both culinary and functional products.

Research claims that lion’s mane offers a range of health benefits, including supporting cognitive function, promoting nerve repair, improving cardiovascular health, and even aiding in weight management. These attributes have fuelled consumer interest in incorporating the mushroom into their diets, either through foods, beverages, or supplements.

The versatility of lion’s mane would make it an excellent addition to a variety of products, from risotto, pasta, soup, smoothies and protein shakes to cereal bars. Its unique earthy flavour adds depth to different dishes, allowing it to easily integrate into a wide range of food and beverage formulations.

In addition to its functional benefits, lion’s mane is praised for its taste. Many consumers describe the mushroom as having a mild, savoury flavour with a seafood-like quality. This makes it not only a functional ingredient but also an appealing one, further increasing its potential in new product development.

Thanks to its meaty texture and subtle seafood flavour, lion’s mane is said to be an ideal ingredient for vegan and vegetarian products. It serves as a natural alternative to meat and seafood, providing a clean and functional option for plant-based meals, without the need for highly processed ingredients.

As the new year unfolds, private label continues to dominate in the US

Over the first two months of 2025, private label continued to dominate manufacturers’ brands by far outperforming their counterparts in both dollar and unit sales across all US outlets, per Circana Unify+. Private label dollar sales gained 5.6% and unit sales rose 1.7%, compared to manufacturers’ brands, which were up 1% in dollars and down -0.8% in units, as of 23 February 2025 vs the same period a year ago. As a result, private label market shares for 2025 moved up to 21.7% for dollars and 23.9% for units, both all-time highs that reflect private label's superior, multiyear performance at checkout. In every one of Circana's last 29 monthly reports to PLMA in the US, private label finished ahead of manufacturers’ brands when it came to changes in dollar and unit sales compared to the prior year.

Coming up: AI for Everyone: Technology Trends by Accenture

PLMA’s Lunch and Learn free webinar on Wednesday 26 March will be presented by Olga Afremova and Stanislav Hilcuks from consultancy Accenture. For more information click here.

Divorce averted: French Council annuls veggie burger name ban

The French plant-based sector reacted with relief to the decision of the Council of State to annul two decrees prohibiting the naming of products containing plant proteins with butcher, delicatessen and fishmonger terms like “steak”, “burger”, “lardon”, or “sausage”.

The Council of State deemed the French decrees of 2022 and 2024 to be illegal and contrary to European regulations. The fact that those decrees targeted only French producers was also considered particularly unfair and unacceptable. The case is closed now with a full victory for the plant-based advocates. The French government will pay €3,000 each to the parties that brought the case to court.

'Nudging' influences some consumers to buy organic

Jumbo Supermarkets, together with Bionext, the sector federation of Dutch organic farmers, has revealed the results of a test that they conducted last summer. The test was to stimulate the online purchase of organic products.

In addition to extra visibility through banners and inspiration lists, customers were encouraged to choose organic products more often through cross sells: customers who add a carton of organic milk to their shopping cart automatically see suggestions for other organic products, such as muesli and fruit. After the successful pilot, Jumbo has decided to continue using these nudges.

Subtle nudging worked out, says Bionext: 28% of online customers click on organic products more often because of the sentence “Organic, unsprayed peel.” No less than 10% of customers have added the organic alternative to their basket in the supermarket's web shop more often. The nudging should help Jumbo to sell at least 8% organic potatoes, vegetables and fruit in 2026 and at least 10% in 2027.

Private brands are competitive forces in CPG with more to come

A new report by Circana “Private Labels: Transformation for Growth” states that private labels have evolved from simply being low-cost, name-brand alternatives to becoming innovative, sustainable, and differentiated products. These brands have continued to increase their share, even as inflation has eased. In 2025, private labels are firmly established in global CPG markets, with continued growth due to consistent, strategic investment.

Private labels are firmly established in CPG with retailers driving their transformation beyond price. EU6 (France Germany, Italy, Netherlands, Spain and UK) is mature (39% value, 47% unit share); USA is emerging (22% value, 24% unit share) yet fastest-growing with $308B in $ sales.

As inflation has eased, private labels continue to grow share. While slowing down in some regions, gains remain strong in the U.S., Spain and France. Private labels have not reduced prices as a response to the competitive nature of manufacturers’ brands. The top 10 fastest-growing private brand segments have maintained their price gaps to manufacturers’ brands in all regions.

In every region, private brands are going beyond simply playing on price and promotions. Approximately 18% of CPG unit sales in each region are vulnerable to gains being made by private labels. Among the top three most vulnerable categories, everyday staple foods in the U.S. and EU6, and non-food in Australia have growth of over 2pp.

Meanwhile, with a positive GDP growth forecast for the Euro area in 2025 (+0.4pp YoY), Circana predicts a cautiously optimistic outlook for FMCG growth. Private labels are expected to continue their strong momentum, driven by investments in range expansion, pricing strategies, and product innovation.

Colruyt rewards customers for making more sustainable choices

Belgian retail leader Colruyt has expanded its Eco-score label with a savings programme. The ecolabel, launched in 2021, provides insight into the environmental impact of products.

At PLMA’s Private Label Packaging Conference in January, Greet De Feyter, head of product sustainability, and Ilka Lannau, head of division private label of Colruyt Group, explained how the company stimulates consumers to consciously consume more sustainably with the help of the Eco-score on the packaging and the associated savings programme.

According to the retailer, consumers increasingly attach importance to transparency and sustainable products. Research shows that 90% of consumers consider transparency of brands important in their purchasing decisions. In addition, 75% of consumers would be willing to switch to brands that offer more than just product and nutritional information. 50% of consumers also plan to buy healthy, local or environmentally friendly products more often.

“The Eco-score helps customers make sustainable choices at a glance,” said De Feyter. The system classifies products on a scale from A (green, low environmental impact) to E (red, high environmental impact). “By making this label visible on packaging and in digital channels, we offer consumers the opportunity to make informed decisions about their purchases.”

To actively reward consumers for making sustainable choices, Colruyt linked a savings programme to the Eco-score. “When customers buy a product with an Eco-score A or B, they earn points in the retailers Xtra app. They can exchange these points to, for example, plant a tree, support a social project or receive a free sustainable product,” explains De Feyter. “The idea is to make sustainable consumption not only easier, but also more attractive.”

The savings programme seems effective: in one year, Colruyt Group hopes to collect 12 million points for sustainable projects. In the meantime, 50,000 trees have been planted, and more and more social and environmental initiatives are being supported.

UK watchdog group proposes shake-up of baby formula market

The UK Competition and Markets Authority (CMA) has proposed measures to tackle the high cost and limited choice in the baby formula market. These suggestions aim to save parents up to £300 a year by encouraging them to choose lower-priced brands. The proposals include standardising packaging and labelling in hospitals to reduce the influence of branding on new parents, as well as allowing parents to use loyalty points and gift vouchers for formula purchases.

The CMA rejected the idea of a price cap on formula products, citing potential risks such as pushing up prices of cheaper brands. Instead, the CMA recommended providing clearer information in stores, with all brands displayed together, so parents can make informed decisions and easily compare prices. The watchdog also suggested removing restrictions on using loyalty points to buy formula but advised maintaining a ban on advertising formula products to avoid discouraging breastfeeding.

The CMA’s study, which began in November 2023, revealed that manufacturers raised prices by up to 36% in just two years, leading to higher profit margins during the cost-of-living crisis. The three main companies—Danone, Nestlé, and Kendal—control more than 90% of the market.

Retailer Iceland has already responded by introducing clearer labels on formula products in its stores, emphasizing that all brands meet the same nutritional standards. The CMA's proposals aim to provide more transparency and help parents make better choices. However, some industry players, like HiPP Organic UK, feel that the report misses the opportunity to foster healthier competition.