Over time, we have witnessed a clear evolution of Private Labels: from almost white-label products associated with low prices and questionable quality, to modern products that often lead in innovation and respond flexibly to shopper needs.
Let’s begin with a global perspective on Private Labels. The 2025 summary shows that Private Labels continue to gain momentum worldwide, with more than +4% growth in sales value compared to the previous year. The fastest Private Label sales value growth comes from Africa/Middle East (+18%) and Latin America (+11%). Growth is also visible in North America (+3%), Europe (+4%), and Asia/Pacific (+5%). Private Labels are increasing not only in sales value but also in market share across all macro-regions. Their rising importance has been a consistent long-term trend. Globally, Private Labels account for 22.9% of FMCG sales value, while in Western Europe their share reaches 40.7%. The retailers are well aware that store shelves are not made of rubber, so Private Labels are steadily expanding into the territory of Brand Labels.
68% of European shoppers say that Private Labels are good alternatives to Brand Labels. But should manufacturers worry? Looking at Europe, where Private Labels hold the strongest market positions and have a long history on store shelves, we can clearly see that they not only maintain a high share but also continue to grow. The European retail market is highly diverse, yet Private Labels strengthen their position as shoppers choose them more frequently. The average Private Label share in Europe is 37%, with Western European countries such as the Netherlands (55%), Switzerland (52%), and the UK (49%) leading the way. Private Labels perform especially well in markets with highly centralized retail markets. 55% of European shoppers say they are likely buying more Private Label products than ever before. At the same time, Brand Labels still have meaningful opportunities for growth. The coexistence of both segments creates balance in the retail market, where each contributes to category development by addressing different shopper needs. Together, they build a stable environment, increase store traffic, and improve the shopping experience by providing greater value, quality, and variety. While Brand Labels have historically driven innovation, Private Labels have quickly gained significance and increasingly exceed shopper expectations. They are no longer seen only as cheaper substitutes but have become a crucial part of modern retail. As their assortments expanded, retailers ensured that Private Labels evolved. They follow trends, successfully fill market gaps, and benefit from the agility and speed of retailers, giving them a strong competitive advantage. Although the evolution of Private Labels may not always appear dramatic, continuous development makes them strong competitors, particularly in several FMCG categories.
Returning to sales data, we can observe where this competitiveness is most evident. Private Labels hold particularly strong positions in Fresh Food, where they account for 60% of global category sales value, and in Paper Products (47%). Following these are Dairy and Frozen Food. These industries share a key characteristic: shoppers easily accept Private Labels here because a lower price does not imply lower quality. Differences between products are relatively small, purchase decisions are simple, and retailers can build trust in their own brands more easily. Additionally, the nature of these industries allows retailers to benefit from local sourcing, which reduces transportation and storage costs while aligning with shopper expectations. This is important factor, because 43% of European shoppers say they are willing to pay more for products of local or community origin, and 40% say they would pay more for environmental or sustainable options such as less plastic, recyclability, or lower carbon footprint.
The past year clearly demonstrates the variety of innovations within Private Labels. Four main trends can be observed. First, convenience-oriented solutions help Private Labels differentiate within the store. Private Labels are growing rapidly in food-to-go and ready-meal categories. Second, the focus on ecological and cleaner solutions is increasingly visible, whether through simple ingredients/formulas or products tailored to specific dietary needs. Third, premiumization has become one of the main themes associated with Private Labels. This trend includes improving quality and expanding assortments with more luxurious items. Fourth, there are major developments in both product formulation and image. Without reading the label, Private Labels are becoming difficult to distinguish from Brand Labels. This results from improved design and strong attention to functional packaging.
What other expectations do Private Labels meet? The answer is simple and directly connected to their core: price. When Europeans were asked about their main concerns, the top issue indicated by 31% was increasing food prices, followed by global conflict or crisis escalation (28%), and increasing utility bills (20%). Although consumer sentiment has improved since the 2022 energy and cost-of-living crisis, financial pressure remains high. 40% of consumers feel worse off than a year ago, compared to only 17% who feel better. This is exactly the environment in which Private Labels thrive – 69% of European shoppers say that Private Labels offer good value for the money. The Polish Private Label market illustrates this clearly. Comparing the Consumer Confidence Index with Private Label sales value dynamics reveals a strong connection: during economic crises, financial uncertainty, or inflation pressure, Private Labels grow more rapidly and gain an advantage over Brand Labels. As shoppers notice and appreciate lower prices combined with comparable or sometimes better quality, their sentiment toward Private Labels grows stronger. 52% of European shoppers say they would buy more Private Label products if a broader variety were available (globally 60%). Even shoppers who originally chose Private Labels for economic reasons often remain loyal to them. Meanwhile, the premium segment within Private Labels continues to expand, as shoppers increasingly choose more refined options. This indicates that shoppers expect not only good prices but also high quality and a sense of exclusivity. 47% of European shoppers say they are likely to treat themselves by upgrading to a premium Private Label product.
Private Labels account for over 24% of FMCG turnover in Poland which is almost 16 mln EUR, and in 2025 it grew in value by +5,7% vs. year ago. Is this a lot? Poland has exceeded the global average, but still has considerable room before reaching Western European levels. This is largely due to the structure of Polish retail, where small format stores play a large role, unlike Western Europe, which is dominated by centralized retail. This does not mean that the Western system is more advanced – it is simply structured differently, and the strong presence of small format retail influences Private Label potential. Nevertheless, centralization in Poland is increasing due to the ongoing expansion of Discounters, where Private Labels currently make up 40% of this channel’s FMCG basket turnover. Each year, Discounters expand both their store count and market share, which now stands at 54%. This growth mainly comes at the expense of small format and traditional stores. As a result, the number of stores in Poland has significantly decreased over the last years, while overall market value continues to grow. Private Labels represent less than 6% of sales value in Groceries. Does this mean the channel has no potential? Absolutely not. Around 26% of Poland’s food basket value is generated by this channel. Private Labels in Groceries address different shopper missions compared to large formats. In large format we see much greater granularity and a smaller importance of the top Private Label categories. However, in Groceries the mix of top Private Label categories is different, and Private Labels have a greater importance in them, especially in convenience-driven shopping missions. Many of the top categories here include impulse items and food-to-go products purchased on the way to or from work. Meanwhile, the top Private Label categories in Poland overall, largely driven by Discounters, include Fixed-Weight Meats, Chilled Products, Hard Cheese, White Cheese, and Fresh Eggs in the Food basket. In the Drug basket, leading categories include Toilet Paper, Kitchen Towels, Diapers, Tissues, and Fabric Softeners.
The evolution of Private Labels in FMCG in recent years clearly shows how much their role and perception have changed. They have moved from simple, low-cost substitutes to strong and competitive market segment that often shape trends. They are growing not only in sales value but also in brand image, supported by retailers investment in quality, branding, and innovation. Private Labels align closely with current shopper expectations, react quickly to trends, and adapt to changing needs. At the same time, Brand Labels continue to play an important role, contributing to a balanced and competitive market that ultimately benefits shoppers. It is clear that Private Labels have become a strategic part of retail, and their importance will continue to grow in the coming years.
Przemysław Korotusz
Analytics Consultant
NIELSENIQ
Let’s begin with a global perspective on Private Labels. The 2025 summary shows that Private Labels continue to gain momentum worldwide, with more than +4% growth in sales value compared to the previous year. The fastest Private Label sales value growth comes from Africa/Middle East (+18%) and Latin America (+11%). Growth is also visible in North America (+3%), Europe (+4%), and Asia/Pacific (+5%). Private Labels are increasing not only in sales value but also in market share across all macro-regions. Their rising importance has been a consistent long-term trend. Globally, Private Labels account for 22.9% of FMCG sales value, while in Western Europe their share reaches 40.7%. The retailers are well aware that store shelves are not made of rubber, so Private Labels are steadily expanding into the territory of Brand Labels.
68% of European shoppers say that Private Labels are good alternatives to Brand Labels. But should manufacturers worry? Looking at Europe, where Private Labels hold the strongest market positions and have a long history on store shelves, we can clearly see that they not only maintain a high share but also continue to grow. The European retail market is highly diverse, yet Private Labels strengthen their position as shoppers choose them more frequently. The average Private Label share in Europe is 37%, with Western European countries such as the Netherlands (55%), Switzerland (52%), and the UK (49%) leading the way. Private Labels perform especially well in markets with highly centralized retail markets. 55% of European shoppers say they are likely buying more Private Label products than ever before. At the same time, Brand Labels still have meaningful opportunities for growth. The coexistence of both segments creates balance in the retail market, where each contributes to category development by addressing different shopper needs. Together, they build a stable environment, increase store traffic, and improve the shopping experience by providing greater value, quality, and variety. While Brand Labels have historically driven innovation, Private Labels have quickly gained significance and increasingly exceed shopper expectations. They are no longer seen only as cheaper substitutes but have become a crucial part of modern retail. As their assortments expanded, retailers ensured that Private Labels evolved. They follow trends, successfully fill market gaps, and benefit from the agility and speed of retailers, giving them a strong competitive advantage. Although the evolution of Private Labels may not always appear dramatic, continuous development makes them strong competitors, particularly in several FMCG categories.
Returning to sales data, we can observe where this competitiveness is most evident. Private Labels hold particularly strong positions in Fresh Food, where they account for 60% of global category sales value, and in Paper Products (47%). Following these are Dairy and Frozen Food. These industries share a key characteristic: shoppers easily accept Private Labels here because a lower price does not imply lower quality. Differences between products are relatively small, purchase decisions are simple, and retailers can build trust in their own brands more easily. Additionally, the nature of these industries allows retailers to benefit from local sourcing, which reduces transportation and storage costs while aligning with shopper expectations. This is important factor, because 43% of European shoppers say they are willing to pay more for products of local or community origin, and 40% say they would pay more for environmental or sustainable options such as less plastic, recyclability, or lower carbon footprint.
The past year clearly demonstrates the variety of innovations within Private Labels. Four main trends can be observed. First, convenience-oriented solutions help Private Labels differentiate within the store. Private Labels are growing rapidly in food-to-go and ready-meal categories. Second, the focus on ecological and cleaner solutions is increasingly visible, whether through simple ingredients/formulas or products tailored to specific dietary needs. Third, premiumization has become one of the main themes associated with Private Labels. This trend includes improving quality and expanding assortments with more luxurious items. Fourth, there are major developments in both product formulation and image. Without reading the label, Private Labels are becoming difficult to distinguish from Brand Labels. This results from improved design and strong attention to functional packaging.
What other expectations do Private Labels meet? The answer is simple and directly connected to their core: price. When Europeans were asked about their main concerns, the top issue indicated by 31% was increasing food prices, followed by global conflict or crisis escalation (28%), and increasing utility bills (20%). Although consumer sentiment has improved since the 2022 energy and cost-of-living crisis, financial pressure remains high. 40% of consumers feel worse off than a year ago, compared to only 17% who feel better. This is exactly the environment in which Private Labels thrive – 69% of European shoppers say that Private Labels offer good value for the money. The Polish Private Label market illustrates this clearly. Comparing the Consumer Confidence Index with Private Label sales value dynamics reveals a strong connection: during economic crises, financial uncertainty, or inflation pressure, Private Labels grow more rapidly and gain an advantage over Brand Labels. As shoppers notice and appreciate lower prices combined with comparable or sometimes better quality, their sentiment toward Private Labels grows stronger. 52% of European shoppers say they would buy more Private Label products if a broader variety were available (globally 60%). Even shoppers who originally chose Private Labels for economic reasons often remain loyal to them. Meanwhile, the premium segment within Private Labels continues to expand, as shoppers increasingly choose more refined options. This indicates that shoppers expect not only good prices but also high quality and a sense of exclusivity. 47% of European shoppers say they are likely to treat themselves by upgrading to a premium Private Label product.
Private Labels account for over 24% of FMCG turnover in Poland which is almost 16 mln EUR, and in 2025 it grew in value by +5,7% vs. year ago. Is this a lot? Poland has exceeded the global average, but still has considerable room before reaching Western European levels. This is largely due to the structure of Polish retail, where small format stores play a large role, unlike Western Europe, which is dominated by centralized retail. This does not mean that the Western system is more advanced – it is simply structured differently, and the strong presence of small format retail influences Private Label potential. Nevertheless, centralization in Poland is increasing due to the ongoing expansion of Discounters, where Private Labels currently make up 40% of this channel’s FMCG basket turnover. Each year, Discounters expand both their store count and market share, which now stands at 54%. This growth mainly comes at the expense of small format and traditional stores. As a result, the number of stores in Poland has significantly decreased over the last years, while overall market value continues to grow. Private Labels represent less than 6% of sales value in Groceries. Does this mean the channel has no potential? Absolutely not. Around 26% of Poland’s food basket value is generated by this channel. Private Labels in Groceries address different shopper missions compared to large formats. In large format we see much greater granularity and a smaller importance of the top Private Label categories. However, in Groceries the mix of top Private Label categories is different, and Private Labels have a greater importance in them, especially in convenience-driven shopping missions. Many of the top categories here include impulse items and food-to-go products purchased on the way to or from work. Meanwhile, the top Private Label categories in Poland overall, largely driven by Discounters, include Fixed-Weight Meats, Chilled Products, Hard Cheese, White Cheese, and Fresh Eggs in the Food basket. In the Drug basket, leading categories include Toilet Paper, Kitchen Towels, Diapers, Tissues, and Fabric Softeners.
The evolution of Private Labels in FMCG in recent years clearly shows how much their role and perception have changed. They have moved from simple, low-cost substitutes to strong and competitive market segment that often shape trends. They are growing not only in sales value but also in brand image, supported by retailers investment in quality, branding, and innovation. Private Labels align closely with current shopper expectations, react quickly to trends, and adapt to changing needs. At the same time, Brand Labels continue to play an important role, contributing to a balanced and competitive market that ultimately benefits shoppers. It is clear that Private Labels have become a strategic part of retail, and their importance will continue to grow in the coming years.
Przemysław Korotusz
Analytics Consultant
NIELSENIQ
