Behind the dynamic growth in the popularity of private labels are discount chains, which effectively compete with hypermarkets. Also conscious consumers have added their three cents here, they analyze the composition of products, read the label and compare prices. If a product has a “good” composition and meets the expectations of the buyer – why should they pay more for a popular brand? In addition to price, positive experiences are also important, so if the consumer is satisfied with a private label product once bought – he will come back for it, and perhaps try others. Retail chains are investing in development and communication, creating brands that not only sell – but also build loyalty1.
Globally, private label sales exceed $330 billion2
Private label sales in Europe exceed 320 billion euros, and their share of the FMCG market in many Western European countries is more than 40%. At the same time, Central and Eastern Europe remains one of the most important areas for further growth in this market segment. Poland is one of the largest and fastest-growing FMCG markets in the region, with a market value of about PLN 287 billion (about €67 billion), and the share of private labels in the FMCG market has reached 23.5%. Compared to Western European markets, this still means high growth potential for the private label segment in Poland and the CEE region. Also noteworthy is the fact that private label sales in Poland are growing faster than the overall market – +6.6% year-on-year.
Evolution of private label perception
The private label market in Poland has entered a phase of mature, qualitative growth, which is increasingly in line with trends observed in Western markets. As ASM SFA Analyst Karolina Mankowska points out, the key change is the evolution of perception – from a purely budget segment to a full-fledged alternative to branded products. Consumers are increasingly following the logic of so-called smart shopping: they consciously choose private label products, expecting quality comparable to category leaders, while maintaining a price advantage. This is confirmed by the data – about 70% of consumers today consider private labels as a full-fledged quality alternative to branded products. (McKinsey & Company – State of Grocery Europe 2024). In practice, this means that private labels have ceased to be a „plan B” and have become an equal choice, which directly translates into growing trust and greater competitive pressure on brand manufacturers.
„At the same time, we are seeing a clear premiumization and segmentation of the offer. Specialty categories are growing fastest – BIO, vegan, gluten-free or simplified (clean label) products. Retail chains are developing their own premium lines, which not only improve margins, but, above all, build loyalty to a particular label. A consumer who finds a high-quality product available exclusively in one chain is much less likely to migrate in price. As a result, private label ceases to be a mere pricing tool, and begins to serve as a strategic asset in building a long-term relationship with the customer,” Karolina Mankowska comments.
This does not change the fact that the pricing aspect remains fundamental. Private labels are one of the key instruments in the pricing policy of retail chains and an important element of communication of the „cheapest store” image. In a period of heightened inflation, the price difference between branded and private label products was one of the main drivers of purchases, accelerating the migration of consumers to cheaper alternatives. Importantly, this shift is permanent – as many as 84% of consumers say they will stay with private labels even if their financial situation improves. (McKinsey & Company – State of Grocery Europe 2024). Thus, once a quality experience is built, some customers no longer return to more expensive counterparts.
„From an operational perspective, the development of private labels places new demands on chains. Successful management of this segment requires as sophisticated an approach to merchandising, availability and shelf execution as global brands. Accessibility gaps or poor display directly undermine the credibility of the offer and limit sales potential, which is why audits and standardization of in-store processes are growing in importance.” – ASM SFA Analyst notes.
Looking more broadly, the share of private labels in the Polish FMCG market is growing steadily and is gradually approaching the levels seen in Western European countries such as Germany and the United Kingdom. Currently in Poland, they are already responsible for about 32% of the grocery market, and a level of more than 30% puts us at the forefront of the CEE region. (Marca Poland / compiled on the basis of market data (including NielsenIQ, PLMA) – Private Labels – a key development direction for the FMCG market). This indicates further potential for growth – both quantitatively and qualitatively. Moreover, as Karolina Mankowska points out, Poland remains one of the fastest-growing markets in the region, with the share of private labels increasing by about 0.5 p.p. per year. (PLMA International – Private Label Sales and Shares Surge Across Europe). As Karolina Mańkowska admits, the next stage of development will be the strengthening of sustainability aspects (including eco-friendly packaging, supply chain transparency) and deeper personalization of the offer to specific consumer segments.
The growing role of Poland as a production base for European private labels is also worth highlighting. The high quality of domestic production, competitive costs and developed competencies in the FMCG sector mean that Polish producers are increasingly becoming partners for foreign retail chains. This not only opens up new distribution channels, but also strengthens Poland’s position in the European retail ecosystem. „Private labels are ceasing to be a complementary element of the offer, and are becoming one of the main drivers of retail growth – both in Poland and globally. Their further development will be based on quality, specialization and the ability to build unique value for the consumer, rather than solely on price advantage.” – ASM SFA Analyst concludes.
Private Label is no longer the domain of a single format – becomes part of a broader offering architecture
„Private label (aka private label) is less and less treated as a solution ‚for worse times’. Until a few years ago, its main competitive advantage was price. Today, consumers take a much more pragmatic approach to shopping – they compare the quality, composition and real value of a product, not just brand strength and price,” comments Mieczyslaw Gonta, Retail and Consumer Goods Team Leader at PwC CEE. This is confirmed by data from the PwC report „Taste, Price, Awareness. A map of Poles’ consumer choices 2025”. 59% of consumers still point to price as a key criterion for choosing food, but at the same time expect adequate product quality. Importantly, about 60% of shoppers do not declare a strong preference for brands, increasingly choosing freshness and seasonality even at the expense of a well-known logo. It is in this space that Private Label is beginning to function like a so-called Private Brand – a brand chosen out of conviction rather than necessity. The boundary between producer brand and private label is becoming less and less clear, and often secondary for the consumer.
This process is strongly intertwined with the development of discount chains. These entities have steadily increased their market share in Europe in recent years, and Private Label has become one of their key growth drivers. The situation is similar in Poland – the discount format remains the main place of first choice for everyday shopping, and the high quality of private labels reinforces this effect.
At the same time, the market is witnessing an interesting transition period. As Mieczyslaw Gonta notes, the price pressure that drove the migration of consumers to cheaper price segments in 2022-2024 (so-called downtrading) is beginning to wane. A consumer who has learned to trust the discount chain’s own brands does not automatically abandon them as the financial situation improves. Rather, he starts looking for quality and pleasure – also within private labels, both in discount stores and traditional chains. This changes the rules of the game: Private Label ceases to be the domain of a single format and becomes part of a broader offering architecture. „For manufacturers, this means a real challenge, but also an opportunity. The development of private labels is no longer a purely price-driven phenomenon – it is the result of changing expectations of consumers, who increasingly buy the product, not the „logo.” In practice, this is forcing a clearer differentiation of brands, investment in innovation or – increasingly – entering the role of a chain’s production partner. Thus, we are witnessing one of the most interesting transformations on the Polish and European market in recent years, which is worth observing and tempting to win it for your own business,” Retail and Consumer Goods Team Leader at PwC CEE.
What are private labels winning the hearts of Poles?3
Value for money is a key criterion for purchasing decisions, but today private label has its own character. Buyers appreciate responding to their individual needs by offering products that are local, organic, or in line with current food trends. As Przemyslaw Korotusz, Analytics Consultant at Nielsen IQ, points out, convenience products, especially ready meals, food-to-go and healthy snacks, also play a big role in the development of private labels. Retailers are investing in the development of their products, trying to compete with the big, well-known brands, including in design, and are not shying away from fighting for their place in the premium segment. Choosing a private label, is increasingly a conscious choice rather than an alternative one.
Private label shares in the FMCG market are even more impressive when we look at specific product categories. „The category in which private labels generate the highest turnover is fixed-weight meats – it is the third largest category by value in the total Polish grocery basket, and private labels account for as much as 54% of the category’s sales value across Poland. Next we have refrigerated ready meals (in Poland it ranks 19th in terms of value, of which private labels are responsible for 75%), yellow cheeses (ranked 14th and the share of private labels at 59%). Among chemical and cosmetic categories, private labels also have high competitiveness in the largest categories by value. The categories with the highest sales value of private labels are, in turn, toilet paper (in the total basket it is 2nd place by value, for which private labels account for 74%), paper towels (5th place and 73% share of private labels) and diapers (14th place and 67% share of private labels)” – Przemysław Korotusz comments.
The popularity of private labels is growing hand in hand with the ongoing expansion of discounters, which increased the number of outlets by more than 600 new outlets from January 2024 to January 2025. Along with new stores, their influence on our habits and consumer expectations is also increasing. Western European examples show that with the concentration of trade, we can expect the importance of private labels to continue to grow in Poland.
Good development prospects
„A key qualitative change is the redefinition of the very concept of private label. The private label offer has evolved – from cheaper products, often treated as a quality compromise, to independent brands with recognizable communication and growing buyer loyalty,” stresses Maciej Ptaszynski, President of the Management Board, PIH.
The private label market is growing intensively and strongly interfering with the entire FMCG market. The position of retail chains and cost pressures are increasing, the market is polarizing – which is becoming both a major challenge and an opportunity for manufacturers in the industry. Experts forecast further growth in the importance of private labels in the coming years. What is noteworthy is that private label products in some way significantly influence and drive innovation in the FMCG sector. Private labels for many manufacturers are an important element of growth. The ability to combine competitiveness with high product quality is also extremely important in this process.
Importantly, there is growing confidence in private labels on the part of consumers themselves. We should also note that private label is becoming the first choice in many FMCG categories. Key trends within private label include premiumization, the development of functional and clean label categories, and the growing importance of a consistent consumer experience – regardless of sales channel. Consumers’ purchasing decisions are increasingly influenced by product quality, promotions and price, health and wellbeing, and shopping convenience, all of which are highly conducive to further brand development.
Monika Górka
Editor
1 source: https://pkb24.pl/juz-co-czwarta-zlotowka-trafia-do-marki-wlasnej/
2 source: MARCA Poland 2026
3 source: NIQ Market Track, Whole Poland as sum of markets: hypermarkets, supermarkets, discounters, large, medium and small grocery stores, gas stations and liquor stores. The analyzed period is 52 weeks ending February 30, 2025. Categories: monitored 134 grocery and 77 chemical/cosmetic categories.
Globally, private label sales exceed $330 billion2
Private label sales in Europe exceed 320 billion euros, and their share of the FMCG market in many Western European countries is more than 40%. At the same time, Central and Eastern Europe remains one of the most important areas for further growth in this market segment. Poland is one of the largest and fastest-growing FMCG markets in the region, with a market value of about PLN 287 billion (about €67 billion), and the share of private labels in the FMCG market has reached 23.5%. Compared to Western European markets, this still means high growth potential for the private label segment in Poland and the CEE region. Also noteworthy is the fact that private label sales in Poland are growing faster than the overall market – +6.6% year-on-year.
Evolution of private label perception
The private label market in Poland has entered a phase of mature, qualitative growth, which is increasingly in line with trends observed in Western markets. As ASM SFA Analyst Karolina Mankowska points out, the key change is the evolution of perception – from a purely budget segment to a full-fledged alternative to branded products. Consumers are increasingly following the logic of so-called smart shopping: they consciously choose private label products, expecting quality comparable to category leaders, while maintaining a price advantage. This is confirmed by the data – about 70% of consumers today consider private labels as a full-fledged quality alternative to branded products. (McKinsey & Company – State of Grocery Europe 2024). In practice, this means that private labels have ceased to be a „plan B” and have become an equal choice, which directly translates into growing trust and greater competitive pressure on brand manufacturers.
„At the same time, we are seeing a clear premiumization and segmentation of the offer. Specialty categories are growing fastest – BIO, vegan, gluten-free or simplified (clean label) products. Retail chains are developing their own premium lines, which not only improve margins, but, above all, build loyalty to a particular label. A consumer who finds a high-quality product available exclusively in one chain is much less likely to migrate in price. As a result, private label ceases to be a mere pricing tool, and begins to serve as a strategic asset in building a long-term relationship with the customer,” Karolina Mankowska comments.
This does not change the fact that the pricing aspect remains fundamental. Private labels are one of the key instruments in the pricing policy of retail chains and an important element of communication of the „cheapest store” image. In a period of heightened inflation, the price difference between branded and private label products was one of the main drivers of purchases, accelerating the migration of consumers to cheaper alternatives. Importantly, this shift is permanent – as many as 84% of consumers say they will stay with private labels even if their financial situation improves. (McKinsey & Company – State of Grocery Europe 2024). Thus, once a quality experience is built, some customers no longer return to more expensive counterparts.
„From an operational perspective, the development of private labels places new demands on chains. Successful management of this segment requires as sophisticated an approach to merchandising, availability and shelf execution as global brands. Accessibility gaps or poor display directly undermine the credibility of the offer and limit sales potential, which is why audits and standardization of in-store processes are growing in importance.” – ASM SFA Analyst notes.
Looking more broadly, the share of private labels in the Polish FMCG market is growing steadily and is gradually approaching the levels seen in Western European countries such as Germany and the United Kingdom. Currently in Poland, they are already responsible for about 32% of the grocery market, and a level of more than 30% puts us at the forefront of the CEE region. (Marca Poland / compiled on the basis of market data (including NielsenIQ, PLMA) – Private Labels – a key development direction for the FMCG market). This indicates further potential for growth – both quantitatively and qualitatively. Moreover, as Karolina Mankowska points out, Poland remains one of the fastest-growing markets in the region, with the share of private labels increasing by about 0.5 p.p. per year. (PLMA International – Private Label Sales and Shares Surge Across Europe). As Karolina Mańkowska admits, the next stage of development will be the strengthening of sustainability aspects (including eco-friendly packaging, supply chain transparency) and deeper personalization of the offer to specific consumer segments.
The growing role of Poland as a production base for European private labels is also worth highlighting. The high quality of domestic production, competitive costs and developed competencies in the FMCG sector mean that Polish producers are increasingly becoming partners for foreign retail chains. This not only opens up new distribution channels, but also strengthens Poland’s position in the European retail ecosystem. „Private labels are ceasing to be a complementary element of the offer, and are becoming one of the main drivers of retail growth – both in Poland and globally. Their further development will be based on quality, specialization and the ability to build unique value for the consumer, rather than solely on price advantage.” – ASM SFA Analyst concludes.
Private Label is no longer the domain of a single format – becomes part of a broader offering architecture
„Private label (aka private label) is less and less treated as a solution ‚for worse times’. Until a few years ago, its main competitive advantage was price. Today, consumers take a much more pragmatic approach to shopping – they compare the quality, composition and real value of a product, not just brand strength and price,” comments Mieczyslaw Gonta, Retail and Consumer Goods Team Leader at PwC CEE. This is confirmed by data from the PwC report „Taste, Price, Awareness. A map of Poles’ consumer choices 2025”. 59% of consumers still point to price as a key criterion for choosing food, but at the same time expect adequate product quality. Importantly, about 60% of shoppers do not declare a strong preference for brands, increasingly choosing freshness and seasonality even at the expense of a well-known logo. It is in this space that Private Label is beginning to function like a so-called Private Brand – a brand chosen out of conviction rather than necessity. The boundary between producer brand and private label is becoming less and less clear, and often secondary for the consumer.
This process is strongly intertwined with the development of discount chains. These entities have steadily increased their market share in Europe in recent years, and Private Label has become one of their key growth drivers. The situation is similar in Poland – the discount format remains the main place of first choice for everyday shopping, and the high quality of private labels reinforces this effect.
At the same time, the market is witnessing an interesting transition period. As Mieczyslaw Gonta notes, the price pressure that drove the migration of consumers to cheaper price segments in 2022-2024 (so-called downtrading) is beginning to wane. A consumer who has learned to trust the discount chain’s own brands does not automatically abandon them as the financial situation improves. Rather, he starts looking for quality and pleasure – also within private labels, both in discount stores and traditional chains. This changes the rules of the game: Private Label ceases to be the domain of a single format and becomes part of a broader offering architecture. „For manufacturers, this means a real challenge, but also an opportunity. The development of private labels is no longer a purely price-driven phenomenon – it is the result of changing expectations of consumers, who increasingly buy the product, not the „logo.” In practice, this is forcing a clearer differentiation of brands, investment in innovation or – increasingly – entering the role of a chain’s production partner. Thus, we are witnessing one of the most interesting transformations on the Polish and European market in recent years, which is worth observing and tempting to win it for your own business,” Retail and Consumer Goods Team Leader at PwC CEE.
What are private labels winning the hearts of Poles?3
Value for money is a key criterion for purchasing decisions, but today private label has its own character. Buyers appreciate responding to their individual needs by offering products that are local, organic, or in line with current food trends. As Przemyslaw Korotusz, Analytics Consultant at Nielsen IQ, points out, convenience products, especially ready meals, food-to-go and healthy snacks, also play a big role in the development of private labels. Retailers are investing in the development of their products, trying to compete with the big, well-known brands, including in design, and are not shying away from fighting for their place in the premium segment. Choosing a private label, is increasingly a conscious choice rather than an alternative one.
Private label shares in the FMCG market are even more impressive when we look at specific product categories. „The category in which private labels generate the highest turnover is fixed-weight meats – it is the third largest category by value in the total Polish grocery basket, and private labels account for as much as 54% of the category’s sales value across Poland. Next we have refrigerated ready meals (in Poland it ranks 19th in terms of value, of which private labels are responsible for 75%), yellow cheeses (ranked 14th and the share of private labels at 59%). Among chemical and cosmetic categories, private labels also have high competitiveness in the largest categories by value. The categories with the highest sales value of private labels are, in turn, toilet paper (in the total basket it is 2nd place by value, for which private labels account for 74%), paper towels (5th place and 73% share of private labels) and diapers (14th place and 67% share of private labels)” – Przemysław Korotusz comments.
The popularity of private labels is growing hand in hand with the ongoing expansion of discounters, which increased the number of outlets by more than 600 new outlets from January 2024 to January 2025. Along with new stores, their influence on our habits and consumer expectations is also increasing. Western European examples show that with the concentration of trade, we can expect the importance of private labels to continue to grow in Poland.
Good development prospects
„A key qualitative change is the redefinition of the very concept of private label. The private label offer has evolved – from cheaper products, often treated as a quality compromise, to independent brands with recognizable communication and growing buyer loyalty,” stresses Maciej Ptaszynski, President of the Management Board, PIH.
The private label market is growing intensively and strongly interfering with the entire FMCG market. The position of retail chains and cost pressures are increasing, the market is polarizing – which is becoming both a major challenge and an opportunity for manufacturers in the industry. Experts forecast further growth in the importance of private labels in the coming years. What is noteworthy is that private label products in some way significantly influence and drive innovation in the FMCG sector. Private labels for many manufacturers are an important element of growth. The ability to combine competitiveness with high product quality is also extremely important in this process.
Importantly, there is growing confidence in private labels on the part of consumers themselves. We should also note that private label is becoming the first choice in many FMCG categories. Key trends within private label include premiumization, the development of functional and clean label categories, and the growing importance of a consistent consumer experience – regardless of sales channel. Consumers’ purchasing decisions are increasingly influenced by product quality, promotions and price, health and wellbeing, and shopping convenience, all of which are highly conducive to further brand development.
Monika Górka
Editor
1 source: https://pkb24.pl/juz-co-czwarta-zlotowka-trafia-do-marki-wlasnej/
2 source: MARCA Poland 2026
3 source: NIQ Market Track, Whole Poland as sum of markets: hypermarkets, supermarkets, discounters, large, medium and small grocery stores, gas stations and liquor stores. The analyzed period is 52 weeks ending February 30, 2025. Categories: monitored 134 grocery and 77 chemical/cosmetic categories.
