Private label is continuing to outperform brands across Europe, with sales for private label growing by 4.1% in value during 2025, compared with 2.7% growth for manufacturer brands.
This momentum comes as shopper perceptions of the category continue to improve, research from IGD reveals.
Almost half (47%) of consumers globally say price is no longer the main reason they buy private label items; with 52% saying the believe private label quality is on par with brands.
UK is private label powerhouse
The UK is one of the world’s leading private label markets, with the category accounting for 44.3% of grocery value sales, verses a 39% average across Europe.
Just a few European countries, including Switzerland, Portugal, Spain and Germany, report higher levels of own label penetration than the UK. However, the trend for private label is widespread across the continent, with eight countries now having shares in the market above 40%.
But it’s not just Europe - private label is a global phenomenon. Last year, the US saw own label sales reach a record $282.8 billion, growing nearly three times faster than national brands.
“Our findings show private label has moved beyond its traditional role as a value alternative and is increasingly competing with brands on quality, innovation and relevance,” said Sneha Haria, insight manager at IGD.
“Shoppers are not trading down to private label products; they are actively choosing them over brands, which is why they have become one of the industry’s most important growth drivers.”
Retailer strategy
According to IGD, the strongest private label ranges are those that are being increasingly managing like brands.
Retailers are investing in product development, packaging, innovation and marketing to create a proposition that is generating trust and loyalty.
The line between private label and brands continues to blur. The most successful retailers are creating brands that shoppers actively seek out, recommend and trust.
Sneha Haria, insight manager, IGD
Globally, Costco’s Kirkland is the largest private label brand, making more than $90 billion in sales in 2025. While retailers like Migros and Lidl have managed to build private label ranges that have attracted consumers with their quality, consistency and innovation rather than just low prices.
Health and wellness is next target
IGD believes health and wellness is one of the biggest opportunities for future private label growth; with retailers already using their own brands to enter popular categories such as protein, gut health and functional nutrition, among others.
Examples include Boots’ expansion of its Wellthy range, Carrefour Belgium’s entry into private label supplements, and a myriad of nutrient-dense products launched by retailers over the last few months.
