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.