The new State of Grocery Retail Europe report for 2025 was published by McKinsey & Company and EuroCommerce. It takes a comprehensive look at the key trends shaping the grocery sector in 2025 and beyond. The report is based on interviews with four grocery CEOs, a survey of more than 30 European CEOs, and a survey of over 14,000 consumers across 13 European countries.

Although overall volume growth is expected to remain low in 2025 and through 2030, there are signs of recovery in some markets. Grocers are expected to shift their focus to capturing growth opportunities and laying the groundwork for future advancements. Despite continued cost and margin pressure, grocery retail CEOs are slightly more optimistic than they were in 2024.

The report also found that private labels gained an additional share in 2024, and 84 percent of consumers say they will continue buying private label products even if their purchasing power grows. Grocers increasingly position their own brands not just as cheaper alternatives, but as differentiated alternatives to A-brands.

Simon-Kucher research reveals price sensitivity, growing demand for quality, and a sharp rise in private label purchases across key markets. The study says consumers worldwide are rethinking how they shop - prioritizing price, seeking higher quality, and increasingly turning to private label products. Based on a survey of 8,000 respondents across seven countries, the findings showcase a clear shift towards private labels, driven by affordability and evolving priorities.

Key findings include a private label dominance: More than half (53 percent) of consumers prefer private labels, with the highest share in Spain (64 percent), France (60 percent), and the Netherlands (58 percent). The US (42 percent) and Sweden (47 percent) show the lowest adoption, highlighting growth potential in these markets.

Secondly, price remains paramount: Between 55 and 66 percent of respondents across all countries state that price has become even more important, particularly in the UK, US, and Spain.

A study by the consulting firm Simon-Kucher reveals that 80% of customers in Germany already use retailer apps, with this figure reaching as high as 96% in the drugstore sector. The survey, which involved 1,000 consumers, explored how app usage influences shopping behaviour.

The primary motivation for using these apps is saving money. Over three-quarters of respondents (83.2%) said the apps make them more aware of discounts, while 73.1% reported that they are able to make cheaper purchases through the apps. About half of the participants indicated that they shop more frequently and in greater quantities using retailer apps. Additionally, most respondents noted that the apps improved the efficiency of their shopping experience and overall satisfaction.

Mintel has published its global food and drink trends report for 2025. The researchers explored what it is that influences consumer behaviours and attitudes toward food and drink. The experts predict that four topics will prevail for consumers:

Fundamentally nutritious. The emergence of weight-loss medications like Ozempic will redefine consumer perceptions of ‘food as medicine’ from added functional ingredients to meeting daily essential nutrient needs.

Rule rebellion. Embrace consumers as ‘perfectly imperfect’ beings who are hungry for brands that help them ‘break the rules’ in food and drink.

According to a study by NIQ, consumers in Germany spend less of their income on food, health and care than in any other EU country. Despite the increase in prices, the share of these expenditures in private consumption last year was 13.4 percent, lower than in all other 26 countries.

Consumers have recently been paying more attention to prices and taking advantage of offers more often. According to NIQ, Germany recorded the strongest increase in promotion purchases in Western Europe, with an increase of 14 percent.

The share of retail in private consumption fell again in the EU in 2023. According to market researchers, this is due to a normalization of consumer behavior. During the Corona pandemic, consumers spent their money mainly in retail because cultural activities, events and travel were often not possible.

A survey among 36,000 participants in 10 European countries reveals that half of the households own at least one pet. The average age of pet owners is 46 years.

Cats are the favorite animals in Germany, Austria, Switzerland, France and Belgium. Special mention goes to France, which is the European country with the most domestic cats among pet owners (71%). Dogs are more popular in Poland, Hungary and Denmark.

A joint study by Oliver Wyman and EuroCommerce, which examines the carbon footprint of the European retail and wholesale value chains, revealed that 98% of the European retail and wholesale sector’s carbon emissions are derived from Scope 3 emissions. Only 2% make up the sector’s Scope 1 and 2 emissions as a result of direct operations or energy consumed. In contrast, Scope 3 emissions are indirect and result from activities by producers and manufacturers along value chains, as well as the energy consumed after the purchase of a product.

While some retailers and wholesalers have made significant progress tracking and reducing emissions – especially Scopes 1 and 2 – the findings highlight the need for the sector to step up the efforts at the company, sector and value chain level to achieve net zero. It demonstrates the critical need to align further on a European and industry- wide methodology to quantify Scope 3 emissions and to identify where they can be reduced. 

A report by NIQ in Spain shows that senior purchasing accounts for 56% of spending on consumer products. In view of demographic data, this number will even grow in the future.

Senior-led households spend the least on consumer products online, but then again, they spend more than average on other channels, like specialist or traditional stores. According to NIQ, inflation has impacted families with children more and senior households less.

In the coming years, there will be more purchasing households, although diverse: a growing population but with a lower share of families with children, there will be smaller households and it will be energized by migration.

A study of consumer trends in the Netherlands over the past five years has revealed that consumers are open to making healthier choices in the supermarket. However, they don’t want to feel that they are being patronized or forced to make a certain choice.

The advice from the researchers is that retailers draw attention to the healthy options in their range, for example, by using clear front-of-pack labeling, like the Nutri-Score. In addition, it would help if healthy products are included in the retailers’ special offers.

The researchers admit that there will always remain a demand for unhealthy products, and it would be unrealistic to want to remove those products from the supermarket altogether. Instead of such a step, paying more attention to highlighting healthy alternatives seems to be the way to go.

Price and offers or promotions are crucial for many 18- to 30-year-olds when shopping for groceries. This emerges from a study in German speaking Europe by the consulting firm Institute of Brand Logic, which identified four additional relevant criteria.

In addition to price, important factors are the quality and taste of the food (80 percent), a range that enables a conscious and healthy diet (67 percent), and the regional orientation of the retailer (60 percent). This is followed by socially and fairly produced food (59 percent) and ecologically and sustainably produced food (52 percent). Digital solutions (27 percent) and trendy foods (25 percent) are in last place here.

The fourth criterion that the study authors identified is the curiosity of the younger generation. 69 percent “very much” or “like” trying out new products, trends and dishes. Accordingly, 60 percent of food retailers would like more relevant product information regarding usage options and food ideas, but also health aspects and supply chains.