European private label sales reached a record €340 billion in 2023, according to data from the Private Label Manufacturers Association (PLMA).
Private label sales accounted for 54% of total market growth last year, and now make up 38.5% of the grocery market’s total value. The turnover of private label brands grew by 13% in 2023 — more than double the rate of manufacturers’ brand sales.
Citing a a McKinsey report, vegan trademark V-Label argues that this is partially because supermarket brands are catering to consumer lifestyle changes. While the first wave of private label products mainly aimed to provide a budget option, the second wave involved launching product lines such as vegan, organic, and free from, along with premium ranges. By targeting health-conscious consumers, many supermarket brands have become highly successful.
According to the report, the second wave was followed by a third where private label products became increasingly trendy through improved packaging and marketing. McKinsey says retailers could now take advantage of a fourth wave by addressing shifts such as the rising popularity of online shopping and lifestyle changes related to health, sustainability, and convenience.
Private label vegan products
One of these changes is a shift towards plant-based foods. In a report published last year, V-Label revealed that it now certifies products for the majority of European retailers, including REWE, Lidl, Aldi, Tesco, SPAR, Migros, Carrefour, and BILLA. In January, SPAR Austria reported that sales of its SPAR Veggie brand had more than doubled in five years.
At the PLMA’s International Salute to Excellence Awards last year, several of the products recognised were vegan, indicating that retailers are increasingly offering high-quality plant-based private label products.
V-Label concludes that private labels are key to consumer loyalty, with over 54% of consumers in ten EU countries saying they regularly visit stores that have high-quality private label products.
“At V-Label we are grateful and proud to work with major retailers, who certify their vegan and vegetarian products to make consumers’ choices easier,” said Martin Ranninger, Co-Director of V-Label International, on LinkedIn.
