Private label has reached a record 50 per cent unit share across Europe’s six biggest grocery markets for the first time.

According to new analysis from Circana, store brands now account for half of all FMCG units sold across France, Germany, Italy, the Netherlands, Spain and the UK.

The share has risen every year since 2021 and is expected to grow further in 2026.

Spain and the Netherlands remain the most developed private label markets, with own-brand products accounting for 59 per cent and 56 per cent of unit sales respectively. The figure now stands at 52 per cent in both the UK and Germany, compared with 46 per cent in France and 36 per cent in Italy.

Circana said the shift reflects continued cost-of-living pressure on European households, as well as the growing strength of retailers’ own-brand ranges across both value and premium tiers.

Private label products now represent 42 per cent of sales by value across the six markets, worth a combined €324bn.

Value share stands at 55 per cent in the Netherlands, 52 per cent in Spain, 44 per cent in both Germany and the UK, 36 per cent in France and 31 per cent in Italy.

The market researcher said food and drink categories were the main driver of recent private label growth, particularly in ready meals, snacks, beverages and dairy. Water drinks were also highlighted as an area of strong momentum, helped by competitive pricing, promotions and limited-edition launches.

Circana said retailers have been able to keep own-brand ranges attractive by offering lower prices while improving quality, broadening healthier options and tapping into lifestyle trends. It also pointed to the role of social media in helping supermarkets reach younger shoppers, who tend to be less loyal to established brands.

The group warned that private label growth could accelerate again later this year if food inflation worsens, particularly as higher costs linked to the conflict in the Middle East feed through into fertilisers, transport, ingredients and distribution.

It also said the rise of online and AI-driven shopping could further support own label, as digital tools increasingly prioritise cheaper products that meet the same shopper need.

Ananda Roy, senior vice president of strategic growth insights at Circana, said: “Supermarket private label brands have spent the last decade becoming powerful brands in their own right.

“Given that a normal shopping basket today costs the same as a premium basket did last year, price-conscious consumers are making hard decisions about which products to buy.”

While national brands have slowed some of private label’s momentum through deeper promotional activity, Circana said the pressure is intensifying. Across the six markets, 34 per cent of branded unit sales were sold on promotion, compared with 14 per cent for private label.

Roy said that strategy was unlikely to be enough on its own, arguing that brands would need to rely on sharper pricing, promotion and shopper data rather than simply increasing discounts.

Sign up here to get the latest grocery and food news each morning