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.