Private Label Is Once Again Growing Faster than Manufacturer Brands, but Not Everywhere

Why It Matters

Accelerated private‑label adoption reshapes retailer margins and challenges traditional manufacturers, signaling a shift in consumer price sensitivity across Europe.

Key Takeaways

• Private label sales grew 4.1% in Europe 2025.
• Manufacturer brands grew only 2.7% in same period.
• Store brands outpaced market growth in 17 European countries.
• Switzerland led private label growth, beating overall food market.
• Private label volume rose 1.3% versus 0.6% total units.

Pulse Analysis

The surge in private‑label demand reflects a broader consumer pivot toward value amid persistent inflationary pressure on food prices. Shoppers are increasingly willing to trade brand loyalty for lower‑priced alternatives that promise comparable quality, a trend amplified by the cost‑of‑living squeeze that has persisted into 2025. Retailers are capitalizing on this shift by expanding their own‑brand portfolios, investing in packaging and product innovation to narrow the perception gap with national brands.

Switzerland’s performance underscores how localized market dynamics can accelerate private‑label growth beyond regional averages. A 4.1% increase in private‑label value, outpacing the 3.2% overall food market expansion, illustrates that Swiss consumers are especially price‑sensitive. This environment encourages retailers to allocate more shelf space to store brands, driving higher unit sales—1.3% versus a modest 0.6% rise in total units—thereby boosting profit margins through lower procurement costs.

For manufacturers, the data signal a need to reassess brand strategies and consider partnerships with retailers to co‑develop exclusive lines. The competitive pressure from private labels could erode market share if incumbents fail to innovate or adjust pricing. Meanwhile, investors are watching the private‑label segment as a potential growth engine, given its resilience across diverse European markets and its capacity to deliver steady revenue streams even when overall food consumption growth slows.