Private-label market share grows to 48 percent

Private labels have long moved beyond being a temporary alternative. They have grown alongside changing preferences and greater price awareness. At the same time, the market behind these products has changed. Manufacturers have expanded, retailers have professionalized, and consumers have become less brand loyal. As a result, the balance in supermarkets continues to shift. RaboResearch expects this growth to continue for some time.

More than a lower price

According to PLMA and NIQ, European private labels grew strongly in 2025. Their volume increased twice as fast as that of branded products. The average market share has also risen sharply in the Netherlands since 2021.

High food price inflation played a clear role in this growth. Consumers sought cheaper alternatives and increasingly turned to discount retailers. Supermarkets also placed greater emphasis on their private-label offerings.

However, price alone does not determine success. Consumers must also have confidence in product quality. Repeat purchases are essential for maintaining growth.

Economies of scale support private labels

Competition between supermarket chains also plays an important role. Private labels help them serve customers who pay closer attention to prices. Hard discounters such as Lidl and Aldi further reinforce this development.

Private-label manufacturers are also becoming increasingly professional. Economies of scale reduce costs and create room for additional investment. This allows manufacturers to invest more in innovation and consumer research.

RaboResearch expects these factors to remain important for now. In Western Europe, the revenue share could rise to nearly 44 percent by 2030. It currently averages 41 percent.

The Netherlands heading toward 48 percent

RaboResearch expects the share in the Netherlands to rise to 48 percent. The current revenue share stands at 46 percent. According to the researchers, further growth is possible over the longer term.

A theoretical scenario puts the share at nearly 60 percent by around 2050. Consumers are now more familiar with private labels. Supermarkets also offer different private-label ranges across several price points.

This development increases pressure on branded manufacturers. However, the impact varies considerably by product category. Some brands have actually gained market share over the past decade. They achieved this through innovation, strong distribution, and premium products.

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