Top 10 Countries Where Private Label Outsells Branded Products in Supermarkets: A Breakdown of Market Share
Private label products are making waves across global supermarket shelves, gaining significant ground over traditional branded goods. With a growing demand for cost-effective yet high-quality alternatives, many countries have seen private label items outselling well-known brands in various categories. Below, we explore the top 10 countries where private label products are dominant, along with estimated market share percentages between private labels and branded goods.
1. United Kingdom
In the UK, private label products have a long-standing presence, and they now account for 60-65% of supermarket sales, compared to branded products at 35-40%. Supermarket giants like Tesco, Sainsbury’s, and discounters such as Aldi and Lidl, have expanded their private label ranges, with consumers drawn to the price-quality balance.
2. Germany
Germany is a leader in private label dominance, driven by discounters like Aldi and Lidl. Private label products make up 55-60% of total sales, with branded goods taking 40-45%. German consumers are highly value-conscious, preferring private labels for everyday shopping.
3. Spain
In Spain, private label products represent approximately 50-55% of supermarket sales, with branded goods holding 45-50%. Supermarkets like Mercadona have cultivated a loyal customer base by offering quality private label options at competitive prices, appealing to the cost-conscious Spanish shopper.
4. Switzerland
Switzerland has a well-established private label market, with products accounting for 55-60% of total sales, and branded items making up 40-45%. Chains like Migros dominate the market with high-quality private label goods, often sourced locally to meet the country’s strict quality standards.
5. Belgium
In Belgium, private label penetration is strong, with private label products representing about 50-55% of supermarket sales, while branded goods hold 45-50%. Retailers such as Colruyt and Delhaize have expanded their own label ranges, capitalising on consumer preference for value without sacrificing quality.
6. Netherlands
The Netherlands also boasts a strong private label presence, with an estimated market share of 50-55% for private labels versus 45-50% for branded products. Albert Heijn and other Dutch retailers have successfully developed their private labels, catering to both budget-conscious and premium-focused consumers.
7. Portugal
In Portugal, private label products take 50-55% of supermarket sales, with branded goods holding 45-50%. Economic factors have driven Portuguese consumers toward private labels, and supermarkets like Pingo Doce and Continente have responded by expanding their ranges across all product categories.
8. France
Private label products are growing in popularity in France, where they now represent around 45-50% of total supermarket sales, while branded items maintain a 50-55% share. Retailers such as Carrefour and E.Leclerc are increasingly investing in their private label offerings, attracting more consumers looking for high-quality, affordable alternatives.
9. Italy
Italy has also seen a significant rise in private label goods, which now account for 40-45% of supermarket sales, with branded products making up 55-60%. Italian consumers are gradually embracing private labels, particularly in food categories, thanks to improved quality and competitive pricing from retailers like Coop and Esselunga.
10. Sweden
Sweden rounds out the list, with private labels making up 40-45% of supermarket sales, compared to 55-60% for branded products. Swedish supermarkets like ICA and Coop are developing strong private label portfolios, appealing to a growing segment of consumers interested in value and sustainability.
The dominance of private label products is evident across multiple countries, with market shares consistently reaching over 50% in many regions. The trend reflects changing consumer preferences, where affordability and quality drive purchasing decisions. As private label offerings continue to evolve, their market share is likely to increase further, challenging established brands in supermarkets worldwide.