Private label surges past 30% market share in Italy

Private label brands are reshaping the Italian consumer goods landscape, with new data from the 22nd Circana Report revealing record growth and a strategic shift toward premiumisation, innovation, and consumer trust.

Presented at Marca by BolognaFiere & ADM 2026, the report shows private label (PRL) now commands a 30.4% share of the omni-channel market and is on track to reach a turnover of €31.5 billion by year-end.

In a climate of “ordinary uncertainty” marked by cautious spending and inflation (+1.1%), private label products have demonstrated remarkable resilience. In 2025, PRL grew by 4.1% in value and 2.6% in volume, outperforming branded competitors and cementing its role as a driver of innovation across Italy’s retail sector.

The Circana Report highlights a shift in consumer priorities: while price remains important, shoppers are increasingly motivated by quality, supply chain transparency, and wellness. Functional products — including organic, free-from, and enriched items — saw a standout 19% growth in value, positioning private label as a hub of health-focused innovation.

Private label prices rose by 1.4%, outpacing branded products and reflecting a move toward higher-value offerings. Consumers are trading up from entry-level lines (+3%) to premium segments, enabling retailers to reduce promotional pressure (now at 16.3%) and build loyalty based on product integrity rather than discounts.

Shelf presence continues to expand, with private label now accounting for 17.4% of assortment — up 0.3 points from late 2024 and more than five points since 2015.

Italian excellence in fresh food remains a key growth engine. Private label gained 0.7 share points in the fresh category, with notable increases in meat (+1) and fruit and vegetables (+0.6). 

While private label penetration is higher in countries like the Netherlands (55%) and Spain (52%), Italy’s 31% share is distinguished by its qualitative dynamism. Italian retailers are leading the way in premiumisation and innovation, with the Circana Report positioning Italy as a benchmark for value-driven transformation.

“Retailers have become true international benchmarks, capable of transforming private label into a laboratory of innovation,” said Rossano Bozzi, business unit director of BolognaFiere. “The 19% jump in functional products and the constant expansion of shelf assortment show that the Italian model, founded on quality and trust, is the true trendsetter.”

Private consumption now accounts for 57.1% of Italy’s GDP, with modern distribution — which intermediates 85% of domestic food consumption — playing a central role. Private label contributes €211 billion in added value, or 10% of GDP, making it a key enabler of national economic growth.

“Consumers are becoming more selective, shifting their spend toward wellness and higher-quality products,” noted Alfonso Giuliano, Italy retail leader at Circana. “The premium segment is gaining ground, reflecting a deeper alignment with values like sustainability and local sourcing.”

Antonella Maietta, exhibition manager of Marca by BolognaFiere & ADM, emphasised the fair’s role in showcasing this evolution: “We are no longer just a product showcase, but a permanent laboratory where retail chains are designing the future of consumption.”