Ewa Muchowska
Director of Private Label Sales and Export
Iglotex
Private label products are successfully finding their place on store shelves and in consumers’ homes, outperforming global brands. Of course, attractive prices continue to play a key role, but they are not the only factor driving purchases. Retail chains are keen to invest in their brands, which is also important. Virtually every chain, regardless of sector, now has its own brand, which it develops and promotes, building an increasingly strong position in the market.
Today’s consumers have increasingly high expectations and make conscious choices, paying attention to the quality, composition and labelling of the products they buy.
Customers are keen to use blogs and influencer channels and are interested in their opinions. They use reviews on quality, how to use products and inspiring recipes.
A key challenge is to balance high quality with competitive pricing. Private label products tend to have lower margins, and modern production needs to adapt to consumer preferences, changing legislation and the challenges of sustainable production, which often results in higher costs.
Piotr Jaroszewski
National Sales Director
Komodo Energy Drink Poland
Private label brands offered by retailers and distributors have become a key element of the food market, competing with branded products not only in price but also in quality and innovation. Amid rising living costs, consumers are increasingly opting for more affordable alternatives, placing the Private Label sector at the forefront of the industry.
One of the key challenges for private label brands is building consumer trust through continuous quality improvement and transparency in composition and production processes. There is also a growing emphasis on sustainable development and eco-friendly packaging, requiring additional investments.
The opportunity for Private Label lies in the increasing acceptance of these products in the Polish, European, and global markets. Functional, health-oriented, and premium products are gaining traction, opening new possibilities for manufacturers.
As a producer of the Komodo Energy Drink private label brand, we offer a wide variety of flavors in 250 ml cans, catering to diverse market needs. Our products stand out due to the highest quality ingredients, innovative formulas, and meticulously developed production processes, ensuring exceptional taste and effectiveness. We are planning further expansion both in Poland and internationally.
The dynamic growth of private label brands presents both challenges and tremendous opportunities. The key to success lies in flexibility, investment in quality, and close cooperation with retail chains and distributors to deliver products that meet the expectations of modern consumers.
Małgorzata Wesołowska-Rucińska
Marketing Manager
LEVANT FOODS
The growing popularity of private labels is mainly due to attractive prices, better quality, wider availability and changing consumer perceptions.
The most significant changes that have contributed to the rise of private labels in the market include:
Increased Trust in Quality
Consumers are increasingly aware that private label products are often manufactured by the same suppliers as branded products. Retailers also invest in certifications like organic or fair trade, which helps build trust in the quality.
Value for Money
Especially in times of inflation and rising living costs, consumers are seeking smart, rational purchases. Private labels are often seen as the smart choice.
Improved Design
Private label packaging has become more attractive, modern, and even premium. Retail chains are creating their own premium sub-brands to further improve perception.
Generational Shift
Younger generations are less loyal to traditional brands and more open to trying private labels as long as they meet their expectations in terms of quality, sustainability, and value.
In 2023, private label product sales in Europe reached €352 billion, with an average FMCG market share of around 38% (NIQ, PLMA).
This is a strong trend that is changing the market and making space for new solutions for large-scale, though at the cost of a weakening position for traditional branded products.
Łukasz Knapowski
Commercial Director
Aksam
Growing popularity of private labels is noticeable during every visit to a grocery store. The main reason behind it may be rising cost of living, and consequently the need to make more thoughtful purchases. Of course, this is not the only factor in expanding presence of private labels on the shelves. Other important elements influencing decisions at the points of sale are respectively, perceived quality of products (once lower, now higher) and the breadth of the offer - e.g. price, assortment of flavors and grammages, as well as attractive and modern packaging. In addition, private label products are being constantly developed, resulting in adaptation to a more demanding target group (gluten-free or organic). In short, consumers not only find what they like in the offer of private labels, but they pay less for it.
It can be predicted that the private label market will only extend in time. Consumers have become convinced by the quality and wide range of private labels, while for retail chains this is one of the tools used to shape customer loyalty and the image of the store’s brand. For suppliers, on the other hand, such market is both an opportunity and a threat. Therefore, from the producer’s point of view, it is crucial to maintain a healthy balance between their brands and private labels.
Małgorzata Cebelińska
Vice-President of the Management Board
Mlekpol Dairy Cooperative
As in the rest of Europe, the share of private label is growing rapidly in Poland. The quality of private label products has improved significantly in recent years, but remains uneven. The most important criterion for the chains is always price, which is why they often outsource part of their production to manufacturers who offer lower prices at the expense of lower quality. The advantage of private labels therefore remains the guarantee of product origin, raw materials, taste and quality. Consumers are also increasingly concerned not only with good prices and quality, but also with other values such as place and tradition, which private labels cannot offer.
Given the dynamic nature of these relationships, we are constantly investing in the recognition and quality of our flagship brands, while at the same time selectively partnering with retailers to produce selected categories under their own brands, thereby enhancing their quality. It remains crucial for us to maintain a balance that ensures both profitability for the milk suppliers of the Mlekpol dairy cooperative and a satisfactory offer for consumers. We are also systematically expanding our product portfolio and offering it to all distributors, giving Polish consumers the opportunity to try trendy new products of very high quality.
Karol Pilaciński
Export Director
Bogutti
For many years we have been observing the dynamic growth of private labels of retail chains and distributors.
Their share in consumer spending exceeded PLN 50 billion in 2023. Private labels allow chains to optimise costs and offer products at attractive prices, which perfectly meets consumers’ needs in view of the rising cost of living.
Initially, they were mainly associated with the simplest and cheapest products, aimed at the most price-sensitive consumers. Over time, however, chains recognised the potential of this category and began to develop their own brand offerings in the premium segment to reach a wider range of customers. Today, it is possible to fill almost the entire shopping basket with private label products alone.
The biggest challenge for manufacturers remains maintaining competitive prices, especially in the context of rising raw material and logistics costs and pressure from buyers. For strategic trading partners, this often means looking for savings and giving up some of their margin.
Another challenge is rapidly changing consumer preferences - they expect constant innovation and product improvement. The life cycle of many products is becoming shorter and shorter, and products come and go from the market very quickly. Despite this, private label is still most often associated with a basic range of products with high sales potential. In the case of in-out sales, the volume required to complete a project can be a problem.
In summary, the share of private labels is growing at the expense of brands, and manufacturers are facing price pressure and the need to adapt quickly. At the same time, private labels will not completely replace branded products, but they are an important and evolving element of the modern FMCG market.
Michał Sawosz
Chief Commercial Officer – CCO
Brand Distribution
Private label development is one of the biggest challenges, but also one of the driving forces behind change in FMCG retail. As Brand Distribution Group, we not only distribute brands from global manufacturers, but we also develop our own brands - Voll and Triumf - which meet the needs of modern consumers. We have noticed that customers in Poland, as well as in other countries, are increasingly guided by value for money rather than brand recognition alone.
Private label has undergone a huge transformation - it is now a segment that often sets standards in terms of quality, innovation and packaging. Further growth in consumer awareness, the development of premium segments and eco-friendly and functional products represent opportunities. Private label can also be a great tool for building customer loyalty and competitive advantage.
The challenges? Cost pressures, rising quality expectations and logistical constraints. We also see that competition for shelf space is becoming increasingly fierce. Success in private label today requires excellent market knowledge, operational flexibility and a consistent brand strategy.
Julita Sipa
Export Manager
Brześć Sipa
Private label brands are gaining popularity due to their attractive price-to-quality ratio, making them a viable alternative to branded products, especially in times of inflation and rising living costs. Opportunities for further growth include increasing consumer trust, expanding product ranges (e.g., premium or eco-friendly items), and better control over quality and logistics. Challenges involve maintaining quality under price pressure, meeting sustainability regulations, and competing with premium brands. In recent years, consumers have increasingly chosen private labels by preference, not necessity. Growing environmental awareness and the rise of e-commerce further support this trend. Private labels have strong potential to compete even more with global brands, provided continued investment in quality and innovation.
Paweł Tokarczyk
Commercial Director
Gold Drop
Gold Drop is a manufacturer of household chemicals that has been on the market since 1991. At present, our portfolio includes more than 1,000 articles in the field of household chemicals and washable cosmetics. Throughout our existence, we have actively developed cooperation with retailers in the area of private label production. Currently, private labels account for over 60% of our company’s total production. Over the many years that private labels have been on the market, there have been significant changes in the way they are perceived by both customers and brand owners. Initially, they were perceived more through the prism of low price and low quality. Today, the situation is very different. Private Label owners and manufacturers pay a lot of attention to the products they create. Very often they are high quality products that meet all European standards and the high expectations of customers. More and more often, we have the pleasure of designing products for our partners that are innovative in terms of the technology used, as well as environmentally friendly solutions that are backed by certificates. The current challenge for Private Label manufacturers is to present a comprehensive offer that includes not only the product itself, but also a wide range of services, including legal and logistical support, etc. We observe that the Private Label market is constantly evolving and there is certainly still a lot to be done.
Ksenia Siakas
Category Director
Greek Trade
Private label products are increasingly competing with branded products, not only on price but also on quality. With the rising cost of living, consumers are more willing to choose cheaper but proven alternatives. This is a huge opportunity for the private label segment, but also a challenge as expectations of quality, transparency of ingredients and sustainable production are rising. We are also seeing a dynamic increase in interest in functional, organic and nutritionally tailored products. At Greek Trade, we are actively supporting retail chains and distributors to create strong private labels by offering products that meet these needs. The potential of the sector - on the Polish, European and global markets - is significant, but to fully exploit it requires flexibility, innovation and the ability to respond quickly to changing trends. With over 30 years of experience, modern production facilities and comprehensive services - from recipe development to logistics - we effectively support our partners in building modern, competitive private labels.
Magdalena Foltyn
Sales Manager Private Label
XL Energy Marketing
In recent years, private label food products have really taken off in Poland, Europe, and globally, creating new opportunities for retailers and distributors. Private labels typically bring in higher profit margins than branded products. As retailers have more control over their private label, they have options to customize and offer more flexibility to adjust to trends such as changes in packaging, taste, ingredients and how to create brand strategies. Private label products are no longer just budget options as retailers have identified an opportunity to expand their portfolios with a premium selection of products targeting increasingly more health conscious and environmentally aware consumers. That gives an opportunity to enter multiple market segments with their own brands. Retailer responsiveness to customers’ needs and expectations are key to the further development of the private label sector. Consumers continue to seek price for value in their purchases and need help balancing their preferences against price and quality. A big challenge for the private label food sector has been brand loyalty, with customers loyal to a branded product. One of the bigger challenges for private label foods is that many customers tend to stick with branded products. If retailers can stay adaptable, build customer loyalty, and respond to changing preferences, they’re likely to keep growing in the retail market worldwide.
Gabriel Mularczyk
Sales Director/HoReCa/Food Service Market Development
Polskie Mięso i Wędliny Łukosz
There is no doubt that private labels are becoming increasingly important.
The choice between developing independently or selling quickly to chains is a difficult one.
We are witnessing a steady increase in consumer awareness, which is significantly influencing interest in turkey meat, which is perceived as a healthier alternative to pork and beef. This is a sales development opportunity for our company, Polskie Mięso i Wędliny Łukosz, which, thanks to its own turkey slaughterhouse and two production plants, ensures continuity in the production and supply chains for meat and turkey products. Consumer interest in high-quality, ready-to-eat or easy-to-prepare products is enabling us to develop both our sales of cold cuts and our range of convenience products made from turkey, which includes frozen, breaded whole muscle products such as nuggets, strips, escalopes and chilled sous-vide turkey products.
Working with retail chains has many benefits for the producer. It ensures consistent volumes, which guarantee stable sales, enabling large-scale production, market-driven margins and cost efficiency. Large-scale production for private labels allows the plant to utilise its processing capacity and ensure continuity of production. However, the development of private label brands also poses a number of challenges for manufacturers. The biggest threat, which has a huge impact on the stability of the factory’s operations, is the low margins resulting from the high bargaining power of the retail chains. Very often, there is also a lack of control over the brand, as the producer is no longer able to build awareness of its own brands and its position is dependent on the decisions of the retail chain.
Magdalena Piestrzyńska-Książek
Owner and CEO
Majami
The private label sector is gaining importance not only in the Polish market, but also globally, thanks to the growing demand for high-quality products at attractive prices. Consumers are increasingly turning to private label, especially as the cost of living rises. In addition, the development of innovations such as organic, vegan and health products is becoming key to attracting new customers. The main challenges for the sector are competition from global brands with larger marketing budgets and the need to adapt the product range to the different preferences of consumers in different markets. In addition, compliance with regulatory and labelling standards in different markets requires flexibility and rigorous quality management. Nevertheless, the private label sector has great potential for growth, provided that investment is made in innovation and the changing needs of the market are adequately addressed.
As a leading private label manufacturer, Majami is fully aware of these changes and is constantly adapting its offering to meet changing consumer expectations. The company is constantly monitoring the market, investing in innovation and developing products to meet market expectations, responding to the growing demand for ecological, healthy and vegan solutions, while ensuring high quality and competitive prices.
