In volume terms the gap was even clearer: private label unit sales increased by 1.3%, more than double the overall market’s plus 0.6%, while branded products saw a slight decline.

Inflation and heightened price awareness continue to influence shopper behavior, but perceived value alone does not explain the success of private label products.

Retailers are increasingly investing in innovation, quality and sustainability to underscore the total value proposition of retailer brands and build consumer trust, report experts.

Euromonitor International, for example, says retailers are incorporating sustainability and innovation into private label development to position their brands as credible and value-driven competitors to national brands.

Even with this overall progress, Europe remains a diverse landscape when it comes to private label penetration. Private label now exceeds 50% market share in Switzerland, while in other countries value shares range from 48.2% in Portugal to 23.6% in Norway.

In 12 of 17 countries analyzed, private label grew faster than branded goods. The best private label improvements were found in Portugal, Hungary, Norway, Spain and Greece.

Performance also varies widely by product department. Private label growth was particularly strong in health care, where sales rose 13% in value and 10% in volume, albeit from a small base.

Meanwhile, fresh and perishable foods continued to perform well, reflecting demand for healthier and more transparent food options.

Consumer perception is also shifting. Surveys reveal 96% of shoppers consider private label essential to their shopping basket, with most believing store brands now match national brands in quality and sustainability.

The overall picture is clear: Europe’s leading national grocery markets may differ in structure and maturity but across this mosaic, private label is firmly embedded and continuing to expand.

PLMA has published its first ever, European private label sales compilation and commentary, titled "A Mosaic of Markets: PLMA’s 2026 Report on the Status of Private Label Across Europe." It details 2025 sales results for both private label and manufacturer brands across the 17 countries monitored exclusively for PLMA by NielsenIQ.

The report is available at the website of the Private Label Manufacturers Association International Council, plmainternational.com

PLMA's 2026 World of Private Label International Trade Show runs May 19-20 at the RAI Amsterdam Convention Centre, Amsterdam.

On the department level the Q1 store brand sales results were mostly on the positive side of the ledger. Eight of the eleven sections experienced store brand dollar sales gains while five of the eleven recorded private label unit sales increases.

Digging deeper, four departments outperformed the overall average when it came to Q1 private label unit sales: Beverages were up by +2.7%, Pet Care rose +2.0%, Refrigerated gained +1.7% and Auto increased +1.1%.

Looking at store brand dollar sales, the leading gainers were Beverages, up +7%, followed by Beauty (+4.5%), General Merchandise (+3.3%), Pet Care (+2.8%), Frozen (+2.3%), General Food (+1.4%) and Auto (+0.7%).

In Q1 of 2026, store brands continued to represent significant savings for consumers on the purchase of their regular household needs. During the three-month period, American shoppers saved 17% at checkout when they opted to buy the store brand version of food and nonfood grocery products versus the national brand counterparts.

On average, all store brand products sold during Q1 were priced at $4.11 per unit while all national brands were $4.79 each. The difference in price per unit was 68 cents or 17%, according to PLMA, which based the finding on YTD sales data from Circana.

•    National grocers are accelerating private label gains faster than regional players, with club channels contributing nearly half of all private brand growth.
•    Private label innovation remains a critical growth engine with retailers focusing on sustainable sourcing, wellness-oriented products, and premium offerings. Elevated private brands have seen outsized innovation levels, particularly in indulgent snacking and beverages.
•    Consumers report trusting store brands as much as name brands for quality products, with private label quality perception growing across categories like food, beverages, and non-food items, such as kitchen and paper goods.
•    Sustainability and wellness-focused product lines are becoming key drivers of private label growth, with private label loyalists often prioritizing wellness and environmentally friendly options.

Younger consumers, particularly Generation Z, are driving this momentum in the U.S. market. Shoppers increasingly view private labels as high-quality alternatives to name brands. Retailers are meeting this demand by expanding their portfolios to include premium, functional, and wellness-focused product lines that rival traditional brands.

The key drivers — financial pressures on households, improved quality and trust, strong Gen Z adoption, and the growing influence of loyalty and exclusivity — remain firmly in place, positioning private label for continued success, Sally Lyons Wyatt, global executive vice president and chief advisor at Circana, said in a statement. She added, however, that the competitive landscape is intensifying, with name brands stepping up innovation, sharpening pricing, and amplifying their social and digital engagement.

This reveals that increased price pressures are causing a major shift in their purchasing behaviors, with more than 90% of consumers adjusting their shopping behavior in response to increased costs. More than 80% of consumers report higher grocery costs in the last six months, including more than 1 in 4 seeing increases of more than $50 per week.

Grocery bills continue to climb:

• Nearly 60% of Americans now spend more than $150 per week on groceries, and 1 in 4 spend more than $250 weekly.
• 52% of households with multiple children reported weekly grocery bills above $200, and 10% noted they spend more than $400 weekly.
• In the last 6 months, nearly a quarter indicate their grocery bill has risen by more than $75 a week.

Brand loyalty is weakening:

• Compared to Zappi's previous 2025 tariff research, consumers who buy only brand-name products have dropped from 21% to 10%.
• Those purchasing a mix of brand-name and store-brand items have jumped 12 points from 56% to 66% year-over-year.