Grocery shopping habits are changing faster than ever. We already discussed the booming private label market share in the aftermath of Covid. But what began as a reaction to rising living costs has evolved into a deeper, long-term shift in how consumers think about value.
And the numbers confirm it. Across 17 European markets, private label now represents 38.8% of total grocery value, up +0.33 percentage points versus 2024. Growth is situated in 12 of the 17 markets. This is a strong signal that this shift is broad-based, not isolated. Private label and discounters—together forming the “value tier”—are no longer simply budget alternatives. They are increasingly becoming the preferred choice.
This evolution is especially visible in markets where private label is already well established: Spain, the UK, France and Belgium. Interestingly, these are also markets where Agristo has long been leading the way within the retail sector. Proof that the most mature private label markets are also those embracing innovation, quality, and consumer trust at scale.
Gone are the days when private label meant compromise. Today, consumers trust retailers’ own brands for both quality and price. In several categories, private label can rival—sometimes even outperform—leading manufacturers on emotional connection and relevance (once their core strength), as highlighted in multiple shopper insight studies.
Meanwhile, the pricing gap between A-brands and private label has become increasingly difficult to justify. Industry research often finds that while leading brands typically score only 10–25% higher than private label equivalents on perceived value and brand strength, their prices can sit 50% or more above the private label alternative. That mismatch puts pressure on traditional manufacturers—and creates new opportunities for retailers to expand store brands that feel genuinely worth it.
For retailers, this means private label is no longer just a margin tool. It has become a strategic pillar for differentiation, loyalty and innovation.
What makes the rise of the value tier truly compelling is that it’s not just a response to inflation. Consumer priorities have fundamentally changed. Even if their income were to increase by 10–15%, most Europeans say they wouldn’t put that extra spending into more premium groceries. Instead, they would save more or redirect their budget toward experiences such as travel, dining out and entertainment.
This signals a lasting behavioural shift: consumers want to spend smartly on everyday staples so they can allocate more to the things that enrich their lives. Private label fits neatly into this mindset: high-quality essentials at a fair price.
And this isn’t happening only in a handful of countries. Twelve markets now report private label shares above 30%, and eight markets exceed 40%, evidence of a widespread European shift in how value is defined.
As the mid-market erodes, manufacturers face pressure to reinvent their portfolios, while retailers continue expandig both value and premium private label ranges. Collaboration between retailers and suppliers becomes more important in this environment. Growth will come from joint innovation, meaningful consumer insights and creating shopping experiences that go beyond price.
This is where producers in the private label space play a unique role. Companies like Agristo support retailers not only by delivering consistent quality at scale but also by helping shape category strategies—from value-oriented essentials to premium tiers that elevate the store brand.
In other words, private label is not a race to the bottom. It is a space where retailers can build brands that express their identity and meet the evolving expectations of their shoppers.
The rise of the value tier is not a temporary trend but a structural realignment. Consumers are signaling clearly that they want quality without overpaying, and they are confident that private label can deliver it.
The scale of the shift is already remarkable: it is estimated that Europe’s private label market is now worth more than €387 billion, with private label sales growing by €15.3 billion overall. Retailers operating in advanced private label markets—like Spain, the UK, France and Belgium—are already showing what the future of grocery can look like. And producers with deep private label expertise are helping retailers move faster and innovate more boldly within this space.
If the past few years have taught the industry anything, it’s that shoppers are redefining value on their own terms. Private label is no longer following that shift... it’s leading it.
In retail, trends rarely arrive with a label. They arrive as new expectations in the aisle: shoppers still want convenience, but they also want choices that feel more worth it. More fitting for the moment, more exciting in flavor, and more satisfying in experience. The trends we see are therefore evolutions, not disruptions.
The private label sector in Europe has seen remarkable growth the past 20 years, capturing increasing market share in both volume and value. This trend, which gained momentum during the pandemic, is showing no signs of slowing down. In the first half of 2024, European market value share of private label rose by yet another 0.5% compared to end of 2023, reaching 38.6%. Let’s take a deep dive in what drives this growth, the strategies that enable these brands to close the gap between volume and value share, and what categories and countries lead the charge.
