February 2025

Industry News
Value of private label sales in Europe grew to €352 billion in 2024

Retailers’ own brands continue to expand their market presence across Europe, with total sales reaching €352 billion in 2024, according to data from NielsenIQ. This marks a 0.11 percentage point increase in market share from 2023, bringing private labels to 38.1% of the total grocery sector. The total grocery market, private labels and manufacturers' brands combined, now stands at €924 billion—nearly €100 billion more than in 2022. NielsenIQ surveyed 17 European markets for PLMA’s 2024 International Private Label Yearbook update and noticed an increase for retail brands in 9 out of the 17 countries.

Europe remains a dominant global player in private label sales, with 10 countries exceeding a 30% market share and five surpassing 40%. The region's three largest grocery markets—Germany, the United Kingdom, and France—hold a collective private label share of 39.7%, up by 0.1 percentage points from the previous year.

Among the highest-growing markets, Spain leads with a 1.2 percentage point increase in private label share, followed by the Czech Republic (+0.5 pp), Portugal (+0.4 pp), and France (+0.4 pp). Switzerland remains the strongest private label market, boasting a 52.0% share, making it the only country with a share higher than 50%.

After experiencing a decline in unit volumes in 2023, the grocery market is showing signs of recovery. Total volume sales increased by 1.27% in 2024, adding 5.24 billion units to the market. Private labels have been the primary driver of this resurgence, contributing to over 75% of the total growth, while manufacturers' brands accounted for the remaining 25%.

Private labels have been the primary driver of this resurgence, contributing to over 75% of the total growth, while manufacturers' brands accounted for the remaining 25%.

Consumer perception of private labels continues to evolve, reinforcing their value proposition. A YouGov study indicates that shoppers have rated the price-performance ratio of private label products higher than in previous years. As a result, retailers with strong private label portfolios are gaining favour among price-conscious consumers.

A shift in consumer attitudes is driving a transformation in private label positioning. According to NielsenIQ, 50% of global consumers report an increased willingness to purchase private label products, and, notably, 40% state they are prepared to pay higher prices for them if they perceive superior quality. This trend suggests a continuing "branding effect" within private labels, as they transition from budget-friendly alternatives to competitive, quality-driven product lines.

A recent industry survey by PLMA among private label manufacturers and retailers showed that nine out of 10 retailers and manufacturers believe that private label sales in the market will grow in the coming years.

Carrefour aims for stores in 150 railway stations

Carrefour won a call for tenders launched by France's national railway company SNCF to open 30 grocery stores per year in all French train stations over the next five years. According to trade experts, competitor Monoprix had also been in the running, and Carrefour CEO Alexandre Bompard showed very satisfied to have won the long and complex call for tenders. He expects a lot of visibility and business from these busy locations for Carrefour. NielsenIQ calculated that the yield per m² in stations that see more than 5 million passengers per year reaches 9,581 euros, almost 40% more than traditional proximity (6,852 euros per m²). In addition, retail in crowded areas represents a fantastic opportunity to test new concepts, according to the company.

Stores will be opened under three of Carrefour’s banners. The majority under the Carrefour Express banner, between 80 and 400 m2, with a high share of Carrefour own brand products (40%), fresh products and snacks. The second banner will be Potager City, which Carrefour launched two years ago. It is focused on fruits and vegetables, which account for between 60 and 65% of turnover, and an offer of 500 to 600 items. These small stores, with the look of a slightly chic greengrocer, should very well match with these stations. Some of the stores in small stations will be self-service minimarkets under the Api banner. These stores do not have staff, consumers can enter using a QR code.

Emergence of private label food as medicine

The start of the year 2025 has seen multiple private label product launches of food and beverages that answer to consumers perceiving food as medicine. We see shoppers of all ages meticulously analysing nutrients of products to see if it contains what they need. It takes what used to be called ‘healthy food’ to a full new level. It also relates to the emergence of weight loss medications in an increasing obese society. These meds have steered consumers’ attention to protein, fibre, vitamins and minerals, nutrients that are strongly advised for them. The trend also includes products for gut health as well as foods and beverages that promote better sleep.

Another area in which food as medicine emerges is mental health and emotional wellbeing. This is about groceries that improve the mood, sharpen focus and address other psychological issues. It is expected that food and drink will play an increasing role in mental health management, breaking down continued social stigmas surrounding lesser-talked-about health issues. Younger generations in particular strive to support and improve their mental health.

Marks & Spencer launched a full spectrum of cognitive foods, drinks and condiments under the umbrella brand “Brain Food”. The products, from smoothies to snacks to salads to breakfast items, contain brain health supporting vitamins and minerals including iron, folate, and Zinc. At the same time, M&S launched a range of new beverages under the name of Yay mushrooms. The innovative new drinks are made with lion's mane and reishi mushrooms. The range has been created by a partnership of the M&S Food team and the scientific brains of Royal Botanic Gardens, Kew – one of the global experts on mushrooms and their qualities. Lion’s mane would have a cognitive effect on neurons in the brain. Reishi would have a positive effect on the immune system. 

Sainsbury’s launched Raw, a new own brand for products that are tailored to different health benefits. These are raw cold pressed juices and shots with a hydrating watermelon juice base, a lower in sugar alternative to traditional apple juice-based products. The juices are cold pressed and high pressure processed rather than pasteurised and heated like many others juices on the market, so in addition to being raw and lower in sugar, they retain more nutrients and are said to have a fresher taste. There are four raw pressed juices; Collagen, Immunity, Daily Greens and Digest as well as an immunity shot and collagen shots to support shoppers with their health journey. The launch comes as 77% of Sainsbury’s customers say they would like their diet to be healthier, with lack of inspiration and time both cited as barriers to doing so.

These are just a few examples of launches of food as medicine that took place in January, traditionally a month in which many people make good resolutions to live healthier in the new year. According to Euromonitor International’s Voice of the Consumer surveys, 42% of consumers say that health and nutrition is a driving force when purchasing food.

PLMA Packaging Conference: 'The time to act is now'

“The private label packaging sector is at a turning point, the time to act is now,” urged Benjamin Punchard, packaging insights director at market research agency Mintel, as he kicked off PLMA’s first Private Label Packaging Conference in the Hague on 30 January.

Punchard added: ‘Sustainability remains a key focus, but further innovation is needed to make environmentally friendly packaging cost-effective and practical. Plastic remains a dominant material, but the emphasis is shifting towards responsible plastic use through reduced material, recyclability and recycled content.’

Kevin Loos, Retail & Channel Manager at Tetra Pak, another speaker, also stressed the importance of acting by informing that one third of all food produced globally is lost or wasted. Tetra Pak works closely with retailers and manufacturers to develop new products and packaging. Loos discussed four core steps that Tetra Pak offers its customers to go from idea to market: co-creation, AI design services, the launch process and packaging benefits. “We believe that collaboration and innovation are the key to success," said Loos.

Leena Whittaker, Director of Competitiveness at EuroCommerce, explained the new EU Packaging and Packaging Waste Regulation (PPWR), which entered into force on 11 February 2025. Its general date of application is 18 months after that. The rules aim to minimise the quantities of packaging and waste generated while lowering the use of primary raw materials and fostering the transition to a circular, sustainable and competitive economy.

The details of the regulations are still in development. Whittaker urged manufacturers, packaging companies and retailers to inform them of problems that they run into when implementing the new regulations. That enables EuroCommerce to give good feedback to EU policymakers, which is essential to ensure that the rules remain workable.

The conference included a full day of presentations on all aspects of packaging with 10 speakers and an industry panel discussion. The winners of the first PLMA Salute to Excellence Packaging Awards were also announced. Information can be found 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.

PLMA Live.eu
A Look at ‘Mood Food' and Other Emerging Food Trends

“Nutritious Food,” “Fusion 2.0,” and “Mood Food” are among the food trends expected to gain traction this year. All three reflect growing consumer interest in health, surprising flavors, and mental well-being. Judith Kolenburg discusses how these trends are shaping the food industry. Also, Pascal Kuipers examines how retailers are partnering with start-ups and scale-ups to drive innovation, highlighting initiatives by Tesco and Sainsbury’s. He also explores the challenges of scaling small suppliers to meet retail demands.

In the stores

Despar has brought a new S-Budget line to market in Italy. The convenience line is aimed at customers who seek savings without sacrificing quality, guaranteed by the rigorous controls applied to the entire supply chain from the selection of raw materials to their processing up to the packaging and distribution phases.

Ahold Delhaize introduces 500 new own-brand products in Central and Southeastern Europe region. The products are available now at Albert in Czechia, Mega Image in Romania, Alfa Beta in Greece and Maxi in Serbia. The new own-brand products contribute to the group’s target of achieving a 45% own-brand share by 2028.

Edeka advertises for trainees with a new campaign on TikTok and Instagram. The company wants to specifically appeal to Generation Z and is humorously addressing the current trend towards esotericism.

Mercadona will invest 250 million euros in its new 2025-2028 digital excellence strategic plan, with which it aims to technologically streamline internal business processes in offices, logistics blocks and physical stores.

Sainsbury’s is planning an overhaul of its beauty departments including the introduction of a new beauty own label. The retailer registered a number of phrases “The Edit Sainsbury’s” and “Sainsbury’s The Edit” with the Intellectual Property Office.

Pan Panorama recorded a 2 percent growth of its private label in 2024 with 11 own brand lines and 3,200 SKUs. The goal is to reach 3,600 items in 2025 and bring the share of private labels to 30% of the turnover by 2026.

Spar is bringing the diversity and trend of Asian cuisine to its stores in Austria with the introduction of a new umbrella brand called “Taste of Asia”. The new own brand brings together the existing Asian products in a new design. In addition, a large number of new, exciting products will be expanding the "Taste of Asia" range in the next few weeks.

Lidl announced that its entry price products range called "P'tits prix oui", one year after launch has grown from the initial 100 items to more than 300 items now. According to Kantar, Lidl is making a comeback in market share in France. 

Alcampo closes 2024 with a donation of food products worth 1.69 million euros to food banks and other social entities such as the Altius Foundation. This amount translates into more than 906,000 units of donated products, suitable for consumption, but not for sale.

Tesco is bringing forward the time of the earliest slots available for same-day delivery, in what it describes as a market-leading move for a UK supermarket. Shoppers booking a slot before 8.45am can now select home delivery slots from 1pm and click & collect slots from midday. Previously, the soonest same-day home delivery slot was 7pm and, for click & collect, 4pm.

Gruppo VéGé has announced a goal of €20 billion in annual revenue by 2030. The retailer highlighted the increasing popularity of private label products, noting their cost savings and the fact that 92% of them are produced by Italian SMEs.

Market research
Consumers rate discounters' pricing of organics

A YouGov study commissioned by Aldi Nord and Süd shows that the most important criteria when deciding to buy organic products are the price-performance ratio and high product quality. At 49 percent, almost half of those surveyed said that was the case. The study also confirms that almost two thirds of consumers who buy organic products buy them at discounters. Significantly more than half of customers trust the organic own brands.

The great popularity of the discounters' organic own brands is closely linked to the fact that discounters meet expectations of cheap organic products: The majority (52 percent) of respondents who buy organic own-brand products at both discounters and supermarkets rate the prices of organic products at discounters as better than at supermarkets. At the same time, most respondents consider the quality (73 percent) of organic own-brand products from discounters and supermarkets to be of equal quality. Good quality does not have to be expensive.

Customers attach particular importance to organic quality when it comes to vegetables (65 percent), fruit (62 percent), egg products (43 percent) and dairy products (40 percent).

Keto diet gaining traction

Recent data from Euromonitor highlights the sustained growth of the ketogenic (keto) diet among European consumers. The latest survey indicates an increase in adherence, with respondents following the diet rising from 3.2% to 3.4%. This upward trend is evident across key markets, including the UK (1.8% to 2%), France (1.9% to 2.3%), Germany (1.2% to 2.3%), and Italy (1.5% to 2.3%).

Consumer behaviour is driving this growth, with a strong preference for health-conscious choices that do not compromise on satisfaction. The concept of "healthy indulgence"—where individuals seek nutritious options without sacrificing taste or satiety—has been a significant factor in keto’s increasing appeal.

This trend presents a notable opportunity for businesses in the food and beverage industry. Consumers are looking for products that support weight management and overall health while maintaining a pleasurable eating experience. Keto products, which promise effective weight control and tangible health benefits without requiring consumers to forego indulgence, are well-positioned to capitalize on this evolving market demand.

PLMA News
Elevate your private label expertise: Join PLMA’s Executive Education Programme!

In today’s competitive marketplace, private labels have become defining assets for retailers worldwide. But managing private labels effectively requires a specialized skill set—one that’s often overlooked in traditional business training. That’s where PLMA’s Executive Education Programme comes in. Taking place on 5-6 March 2025 at Nyenrode Business University near Amsterdam, this exclusive event offers a deep dive into the strategies and insights you need to excel in the private label industry.

Whether you’re a retailer, manufacturer, or executive involved in private labels, this programme is tailored for you. Here’s what you’ll gain:

  • Comprehensive Expertise: Learn about new product development, retail trends, private label strategy, retailer-manufacturer dynamics, logistics, NPD, sourcing, ESG, and marketing.
  • Actionable Insights: Explore retail case studies and get practical takeaways from experts that you can immediately apply to your business.
  • Collaborative Learning: Engage with like-minded professionals and leading speakers in interactive sessions that foster knowledge-sharing and innovation.

Private label success hinges on the unique collaboration between retailers and suppliers. This programme is designed to accelerate your understanding of private branding and provide you with the tools to succeed in this dynamic sector. Through thought-provoking lectures and engaging workshops, you’ll be equipped with cutting-edge strategies and solutions tailored for today’s market demands.

Stay ahead in the private label industry with PLMA’s Executive Education Programme—the go-to resource for retailers and suppliers seeking to sharpen their skills and grow their businesses. Check the curriculum and reserve your spot today here.

Events
PLMA's Lunch and Learn Webinar

PLMA’s Online Lunch and Learn is designed exclusively for private label manufacturers (PLMA-members), retailers and wholesalers, who want to expand their knowledge of the private label business. 

 

26 March 2025
Online on Zoom
Registration Details