From value to innovation: private label in Europe

Private label in Europe is evolving beyond value positioning as retailers leverage trend‑driven innovation, partnerships and responsible development to enhance differentiation and competitiveness, according to IGD.

Four global private label trends are shaping the market. First, staying on-trend, with health and lifestyle influencing product development. Examples include Aldi Nord’s lower-sugar Barissimo iced lattes in Germany, which combine wellness, taste and convenience.

Second, cross-collaboration is accelerating innovation through technology partnerships. Tesco’s work with AI platform Keychain streamlines design, sourcing, compliance and manufacturing, reducing complexity and shortening launch times.

Third, responsible shopping is driving nutrient-dense and sustainable products. dm’s Denkmit laundry detergents utilise CO₂-based surfactants, while Co-op and M&S are introducing GLP‑1-friendly, high-protein and high-fibre products to support health-conscious consumers.

Finally, private label is expanding beyond food into higher-value non-food categories. Sainsbury’s is growing its premium dog food range, and Superdrug has invested in own brand beauty and skincare, proving private label can offer credible alternatives to established brands.

For suppliers, these trends present opportunities to influence category direction. Retailers seek partners who can deliver trend aligned products, accelerate development, support responsible innovation, and provide high performance non-food solutions. Agility, technical expertise and insight will be key to shaping the next phase of private label growth in Europe.