Private label keeps gaining market share in Germany. GfK reports that sales of retailer brands climbed 4%, while manufacturer brands increased only 0.5% in 2017. Private label gains are due to the growth in both the price entry brands (+ 0.5% market share compared to 2016) and the value-added brands (+ 0.3% market share). The increase in private label is reflected in a decline in the middle brands by 0.8% to nearly one third of the market share.
The gains for private label come as retailers enjoyed strong sales last year. The GfK market researchers report an increase in sales of 3.6%, or around six billion euros for food retailers (full-range supermarkets, discounters and drugstores) compared to the previous year, the largest increase since the end of the financial crisis.