The 50% moment

There are milestones, and then there are moments that redefine an industry. Private label reaching a 50% unit share across Europe’s biggest grocery markets is firmly the latter.

For years, own label was framed as the value alternative — a fallback for shoppers during tougher economic cycles. That narrative no longer holds. What we’re seeing now is something deeper: a reshaping of how consumers define value altogether.

The latest insights from Circana tell a clear story. Shoppers aren’t just trading down — they’re reassessing what matters. If a product delivers on taste, quality, nutrition and price, the logo on the packaging matters far less than it once did.

And retailers have been ready for this shift. Today’s private label ranges are broader, smarter and often faster to market. From premium indulgence lines to high-protein ready meals and trend-led launches, supermarkets are competing across every tier, not just at the bottom.

What’s accelerating this change is technology. AI-driven shopping — whether through online platforms or comparison tools — is quietly stripping away the emotional bias of brand. Increasingly, products are judged on function and price. In that environment, private label has a built-in advantage.

For branded manufacturers, this is uncomfortable territory. The traditional playbook — strong branding supported by periodic deep promotions — is under strain. When a third of branded products are sold on discount, it raises a difficult question: is the brand equity still doing its job?

That’s not to say brands are finished. Far from it. But the bar has moved. Standing out now requires more than recognition — it demands genuine differentiation, whether through innovation, sustainability, functionality or storytelling that resonates.

There’s also a generational shift at play. Younger consumers are less brand-loyal, more price-aware and heavily influenced by digital channels. Retailers are meeting them where they are, turning private label into something discoverable, even aspirational.

So, the 50% milestone is a signal that private label has grown up, that value has been redefined, and that the competitive rules of FMCG are being rewritten in real time.

The question now isn’t whether private label will keep growing.

It’s how everyone else will respond.

• Rodney Jack, editor, Food & Drink Technology. Keep in touch via email: [email protected] X: @foodanddrinktec or LinkedIn: Food & Drink Technology magazine.