Private label’s market share reaches record highs in Europe

The popularity of private label is growing across Europe. The latest Nielsen data shows that market share for retailer brands has increased significantly in nine European countries: Germany, Italy, The Netherlands, Belgium, Poland, Austria, Sweden, Norway and Denmark.

For the first time, it stands at 30% or above in 15 of the 20 countries tracked for PLMA’s International Private Label Yearbook.

The biggest market share increases were posted in Austria, up 2.8 points to 43%, followed by Germany, up 2.1 points to 45% and Poland, up 1.4 points to 30%. Seven countries now have market shares of 40% or higher: United Kingdom, Germany, Austria, Belgium, Switzerland, Spain and Portugal.

Brian Sharoff, president of PLMA, says, “The latest Nielsen statistics reveal clearly that 2016 was another good year for retailer brands in Europe. This continues a long term trend which shows that private label’s success isn’t tied to economic cycles but reflects the growing confidence shoppers have in retailer brands.”

Market share in the United Kingdom stayed above 45% and appears ready to resume growth as supermarkets expand their private label programmes to combat the competitive challenge from discounters. In France, private label penetration remained over 30% for the 13th consecutive year.

Both Belgium and the Netherlands reached new market share highs. Denmark, Norway and Sweden, posted increases; for the first time, private label penetration for all of the Scandinavian countries stands at 30% or above.

Poland has crossed over the 30% market share mark, Hungary remains unchanged at 34%, while Czech Republic and Slovakia maintained over 30%.

Among the Mediterranean countries, market share in Italy climbed for the fifth consecutive year, posting its biggest increase since 2012. Private label penetration is expected to increase as Aldi enters the market and Lidl looks to add more stores there. Greece and Turkey stayed above 20%.