Private Label in Growth in Germany and across Europe

The Private Label Manufacturers Association (PLMA) hosted its largest-ever “World of Private Label” trade show a few months ago – a signal of the continued strength and innovation of the €352 bn sector.

Key figures from NielsenIQ (2025 International Private Label Yearbook) reveal:

• Private label sales in Europe grew by €9.5bn vs 2023)
• Market share rose to 38.1% of the total grocery sector (+ 0.11 pp vs. 2023)
• Germany remains one of the largest private label markets in Europe.
• Unit sales in grocery increased by +1.27%, adding 5.24 bn units.
• Private labels drove over 75% of the total volume growth in the grocery sector.
• Strongest category growth: Ambient Food, Snacks, Perishables, Alcoholic Beverages.

German Consumers Embrace Private Labels

A December 2024 study by Simon-Kucher & Appinio confirms a long-term shift in German consumer behaviour:

• 52% of German shoppers now prefer private labels (up from 43% in 2023)
• 73% want to continue buying private labels.
• 13% plan to increase their use even further.
• Even if prices fall, more than half would stick to private labels.
• 14% would buy even more private labels if branded products became cheaper.

Private labels are especially popular among lower-income households, but are increasingly seen as high-quality alternatives across all demographics.

What Matters to German Consumers in 2025

Price remains the most important purchase driver, with 60% of consumers saying they are more price-conscious than in the previous year. However, other factors are gaining ground:

• 37% prioritise product quality.
• 30% value sustainability – particularly younger consumers, who are willing to pay more for high-quality, eco-friendly products.

Shopping frequency is also changing: 55% of consumers now shop for groceries several times per week. The overall trend points to more frequent, value-driven, and conscious purchasing behaviour.

Conclusion: A Market Full of Opportunity

Germany’s grocery sector is evolving – and private labels are leading the way. For international producers, the opportunity lies in offering products that combine affordability, quality, and sustainability.

To get in touch with our Germany team