Private-label products now account for 54% of consumer goods spending in Spain, underlining the strength of supermarket-owned brands and the changing relationship between shoppers and traditional manufacturers’ brands.
The latest figure, reported by the Private Label Manufacturers Association from research by EAE Business School, places Spain among Europe’s most developed markets for private label.
The shift is being driven by a combination of price, quality and consumer confidence. Around 70% of Spanish consumers surveyed said they were satisfied with private-label products, while more than three-quarters highlighted their value for money.
Private-label products are increasingly being treated as brands in their own right rather than simply cheaper substitutes for manufacturer brands. Supermarkets have expanded their own ranges into premium, organic, healthy and functional products, giving shoppers more choice across different price points.
The price advantage remains important. Store brands are perceived as being around 22% cheaper than manufacturer brands, providing retailers with a powerful proposition at a time when many households continue to monitor their grocery spending closely.
Private label is particularly strong in everyday categories including dairy, packaged food and household cleaning products. Manufacturer brands continue to have greater strength in some categories, particularly beverages, but the overall balance of the Spanish grocery market has clearly shifted.
Recent market data also shows the scale of private label within individual Spanish supermarket groups. At Mercadona, private-label products represented around 79.1% of sales in the latest figures, while the proportion at Lidl was approximately 82.4%. Aldi was around 77%.
The Spanish market is part of a wider European movement. Circana reported earlier this year that private label had reached a record 50% unit share across Europe’s six largest grocery markets — France, Germany, Italy, the Netherlands, Spain and the UK. Spain led those markets at 59% of units sold.
For supermarket operators, the continued growth of private label provides greater control over product development, pricing, positioning and customer loyalty. For branded manufacturers, it means retailers increasingly compete with them using products that occupy the same shelves and often target the same consumers.
Spain’s 54% private-label share therefore represents more than a consumer search for lower prices. It reflects a fundamental change in European grocery retail, with supermarket brands becoming an increasingly important part of shoppers’ everyday purchasing decisions.