UK | Private label has continued to outperform brands across Europe as shoppers increasingly choose retailer-owned products for quality rather than price, according to new research from IGD.
Private label sales grew by 4.1 percent in value during 2025, compared with 2.7 percent growth for manufacturer brands. The growth came as shopper perceptions have continued to improve.
Nearly half of shoppers globally said that price was no longer the primary reason they bought private-label products, as 52 percent now believed that the quality was equal to that of brands.
UK As A Powerhouse
The UK has remained one of the world's leading markets, with retailer-owned products accounting for 44.3 percent of grocery value sales, compared with a 39 percent average across Europe.
Only a handful of European markets, including Switzerland, Portugal, Spain, and Germany, reported higher private-label penetration than the UK.
However, eight European markets now have private label shares above 40 percent, demonstrating how deeply embedded retailer-owned products have become in shopping habits.
In the US, private label sales reached a record USD 282.8bn in 2025 and grew nearly three times faster than national brands, highlighting the trend's strength beyond Europe.
Sneha Haria, Insight Manager at IGD, said these findings showed private label has moved beyond its traditional role as a value alternative and is increasingly competing with brands on quality, innovation and relevance.
“Shoppers are not trading down to private label products; they are actively choosing them over brands, which is why they have become one of the industry's most important growth drivers,” said Haria.
Retailers are building brands, not just own-label ranges
IGD said the strongest private label programmes have increasingly been managed like brands. Retailers have invested in product development, packaging, innovation and marketing to create distinctive propositions that shoppers actively seek out and trust.
The report highlighted Costco's Kirkland as the world's largest private-label brand, generating sales of more than USD 90 billion in 2025. Meanwhile, retailers such as Migros and Lidl have built private-label brands that command loyalty through quality, consistency, and innovation rather than low prices alone.
Haria added that the line between private label and brands has continued to blur. The most successful retailers have been creating brands that shoppers actively seek out, recommend and trust.
Health and wellness emerge as the next growth frontier
Looking ahead, IGD identified health and wellness as one of the biggest opportunities for future private label growth. Retailers have been increasingly using their own brands to enter high-growth categories such as protein, functional nutrition, supplements, gut health and broader wellness solutions.
Examples highlighted in the report include Boots' expansion of its Wellthy range, Carrefour Belgium's move into private-label supplements, and growing retailer investment in products that support changing health needs, including consumers using GLP-1 treatments.
IGD believed health will play a critical role in the next phase of private label development, enabling retailers to compete on expertise, trust and innovation rather than price alone.
