Discounters to drive grocery growth to 2030, says IGD

Discounters are set to outpace the wider grocery market through to 2030, reinforcing their growing influence on the global retail landscape, according to a new report from IGD.

The Global discount trends 2026 report forecasts the channel will grow at a compound annual rate of 4.8%, ahead of the total grocery market’s 4.0%. Growth will be driven by continued consumer demand for value, ongoing store expansion and faster innovation across operations and product development.

IGD highlights that discounters are shedding their low-cost image and evolving into more sophisticated operators, with stronger brand perception and resilience to changing shopper spending. By 2030, the channel is expected to account for 9.7% of global grocery sales, adding around £156bn in revenue.

Europe will remain the sector’s core market, with discounters projected to hold a 23.6% share. However, expansion in the US and parts of Eastern Europe is expected to accelerate growth. Major players such as Aldi and Lidl are forecast to generate combined sales of approximately £249bn by the end of the decade.

The report also identifies faster growth in variety discounters, alongside four key trends shaping the sector: enhanced value propositions beyond price, greater focus on health, improved in-store engagement, and increased transparency around sustainability.

For suppliers, IGD stresses the need for closer collaboration with discounters, particularly in areas such as private label, supply chain efficiency and value-led innovation, as the channel continues to gain momentum globally.

Amazon on top, but grocery giants dominate European retail rankings

Amazon has overtaken Schwarz Group to become Europe’s largest retailer by gross merchandise value (GMV), according to the latest European Top 50 ranking from Retail Cities. The report includes companies in the consumer goods, restaurant, specialty, fashion, and e-commerce sectors. However, the report underscores the continued dominance of grocery retailers, which occupy every position from second to twelfth place.

While Amazon’s rise reflects the growing influence of ecommerce and platform-based models, the rankings reveal that traditional food retail remains the backbone of European consumer spending. Schwarz Group, alongside other major grocers such as Aldi, Edeka and Tesco, continues to command significant scale, with the grocery sector benefiting from its essential role in household expenditure.

The 2026 report, based on Retail Cities’ business intelligence database, uses GMV to measure total ecosystem sales across physical stores, ecommerce and franchise operations. This methodology highlights the resilience of large supermarket groups, whose extensive store networks and increasing investment in digital capabilities have enabled them to maintain strong positions in the rankings.

European retail spending exceeded €4.5 trillion in 2025, growing by €162 billion, or 3.7%. The Top 50 retailers captured €103 billion of this increase—around 64% of total growth—raising their combined share of consumer spending to 41%.

Although ecommerce players recorded faster growth rates overall, no physical retail segment matched the scale and consistency of grocery. The concentration of grocers in the upper tier of the rankings illustrates the sector’s defensive strength, even amid subdued real-term growth and inflationary pressures.

According to the Retail Cities European Top 50 Report, the findings point to a dual dynamic in European retail: rapid innovation at the top, led by Amazon, alongside enduring market power among large grocery operators that continue to anchor the industry.

Discounters to drive grocery growth to 2030, says IGD

Discounters are set to outpace the wider grocery market through to 2030, reinforcing their growing influence on the global retail landscape, according to a new report from IGD.

The Global discount trends 2026 report forecasts the channel will grow at a compound annual rate of 4.8%, ahead of the total grocery market’s 4.0%. Growth will be driven by continued consumer demand for value, ongoing store expansion and faster innovation across operations and product development.

IGD highlights that discounters are shedding their low-cost image and evolving into more sophisticated operators, with stronger brand perception and resilience to changing shopper spending. By 2030, the channel is expected to account for 9.7% of global grocery sales, adding around £156bn in revenue.

Europe will remain the sector’s core market, with discounters projected to hold a 23.6% share. However, expansion in the US and parts of Eastern Europe is expected to accelerate growth. Major players such as Aldi and Lidl are forecast to generate combined sales of approximately £249bn by the end of the decade.

The report also identifies faster growth in variety discounters, alongside four key trends shaping the sector: enhanced value propositions beyond price, greater focus on health, improved in-store engagement, and increased transparency around sustainability.

For suppliers, IGD stresses the need for closer collaboration with discounters, particularly in areas such as private label, supply chain efficiency and value-led innovation, as the channel continues to gain momentum globally.

Spanish food retail hit record social media engagement last year

The Spanish food retail sector is experiencing unprecedented digital engagement, according to Acceso’s 2025 Social Intelligence report. The study analysed over 1.9 million mentions from more than 500,000 users, generating 203 million interactions, highlighting the growing importance of online reputation and marketing for leading retailers.

Not all platforms perform equally. While Google My Business, YouTube, and X capture the largest share of mentions, TikTok and Instagram deliver far higher amplification. TikTok, with only 114,700 mentions, produced over 160 million interactions, while Instagram achieved 27 million interactions from 39,100 mentions. Women accounted for 71 percent of participants in these digital conversations.

In terms of brand visibility, Mercadona dominates with just over 1.1 million mentions, followed by Carrefour (412,000), Lidl (346,500), Aldi (157,841), and Dia (33,641). The study also reflects evolving consumer preferences: discounters are increasingly popular, with loyalty influenced by services such as in-store bakeries, fresh fish preparation, and extended opening hours.

Social media is also shaping product innovation. Seasonal, limited-edition, and “viral” items, like pistachio crisps or truffle sauces, gain traction through TikTok and Instagram, alongside a growing appetite for ready-to-eat meals and health-focused products, including high-protein, vegan, and gluten-free options.

Many Germans abandon brand-name products for private label

A recent study by management consultancy Simon-Kucher highlights a shift in German grocery shopping habits, with brand name products increasingly perceived as overpriced. Conducted in January 2026 alongside market research institute Appinio, the survey of 1,000 Germans found that over half see no clear advantage in branded goods, while 39 percent even accuse brands of profiteering.

As a result, 42 percent of respondents rely primarily on private labels for their weekly shopping, with 14 percent almost exclusively purchasing them. The trend is particularly pronounced among lower-income consumers, of whom nearly a quarter largely avoid branded products, compared with just 11 percent of higher earners.

Price is becoming the dominant factor in purchasing decisions, with 59 percent expecting it to grow even more important in 2026. Conversely, sustainability and ethical considerations are losing influence, reflecting a pragmatic shift in consumer priorities.

Simon-Kucher emphasises that the move towards private labels is structural rather than cyclical. Even if branded and private label prices were equal, 81 percent intend to stick with retail brands.

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.

Private label keys non-food retail strategy in Germany

Private labels are emerging as a key strategic lever for retailers, particularly in non-food categories, according to a joint analysis by Boston Consulting Group and Inverto. The research finds that well-developed retailer brands can deliver higher margins, broaden customer reach and strengthen differentiation in increasingly competitive markets.

Consumer perceptions continue to shift in favour of private labels. In Germany, 66% of shoppers now choose retailer brands for their value for money, with independent product tests in some non-food categories rating private labels on par with, or ahead of, leading manufacturer brands. Younger consumers are proving especially receptive, driven in part by social media trends such as “dupe” content, which has normalised alternatives to premium brands.

BCG partner Marcus Kroth highlights a clear change in both retail strategy and consumer behaviour. Leading retailers are managing private labels as full brands, supported by data-led assortment planning, emotional brand positioning and consistent visibility across physical and digital channels.

Inverto identifies procurement and supply chain excellence as critical success factors. Retailers using AI-driven demand forecasting report planning accuracy improvements of 10–20%, supporting availability, reducing markdown risk and reinforcing the long-term profitability of non-food private labels.

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.

French shift to private label at expense of big brands

Private label products are increasingly dominating French shopping baskets, challenging major brands across most FMCG categories, according to an exclusive survey conducted by Appinio for LSA magazine. Emilie Dumas, research lead at Appinio, highlights that private labels have strengthened their position in the context of price pressure and constrained purchasing power.

The survey, conducted in late 2025 with a representative sample of 1,000 French consumers, shows private labels now account for 36% of FMCG sales by value and 47% by volume. Over 80% of respondents regularly buy private label food products, 70% household items, and 52% beauty products. Three-quarters report being familiar with private label ranges, while 86% say these products are easy to identify in stores.

Price and value for money remain the key drivers, but perceived quality has improved significantly, narrowing the gap with major brands. Food and home care private labels are seen as competitive alternatives, while in health and beauty consumers still favour national brands. Loyalty is increasingly store-driven, reinforcing private labels’ legitimacy as reliable, high-value options.

Greeks opt for private label, home grown products

Greek shoppers are increasingly choosing private label products for value while maintaining trust in “Made in Greece” items for quality, according to Professor Georgios Baltas of the Athens University of Economics and Business.

The January 2026 survey reports private label now accounts for nearly 40% of household purchases, with high satisfaction and perceived quality. Most items are produced locally, reinforcing supermarket ranges and supporting domestic manufacturers. Professor Baltas highlights that this trend contributes to economic growth and employment.

Rising prices are shaping buying behaviour: over half of consumers report cutting shopping budgets. Shoppers largely blame multinational corporations for price rises, reflecting awareness of oligopolistic market pressures.

Supermarket loyalty is split, with price, quality, promotions, and Greek origin as key drivers. Private label products are now recognised as dependable, cost-effective alternatives without compromising quality.