Own Label Unit Share Increases to 50% for First Time Ever

For decades, own label was framed as the alternative, a compromise shoppers made when budgets were stretched or their favourite brands were unavailable. But now it seems that narrative is no more, with own label having just reached a record 50% unit share across Europe’s six largest grocery markets – the UK, France, Germany, Italy, Spain and the Netherlands – for the first time ever.

This suggests that shoppers are now intentionally choosing own labels, rather than them being a reluctant second choice. But what does this mean for retailers and brands?

What do the stats say?

Circana’s analysis shows food and drink are driving own label’s momentum, particularly ready meals, snacks, beverages and dairy, with bottled water standing out thanks to competitive pricing, innovation, and limited-edition launches.

Crucially, shopper behaviour has caught up.

• 62% of shoppers have switched to own label due to affordability
• 58% believe own label quality matches branded equivalents
• 71% will trial a private label if their preferred brand is unavailable
• And 45% permanently switch after a positive experience

More than half of global consumers now say brand or store brand is irrelevant. Gen Z leads this shift, with 56% actively choosing own label, unburdened by legacy brand loyalty.

According to NIQ, 68% of shoppers now view private label as a good alternative, and 69% see it as strong value. Range and execution have overtaken perception as the number one factor affecting demand, with 60% of consumers saying they would buy more own label if there was greater variety.

The own label paradox: Less range, higher expectations

But here’s where it gets interesting.

Despite own label’s momentum, The Grocer reports that some retailers are actually reducing their own-label ranges, particularly at the budget end. Range rationalisation, quality concerns, and frustration around things like shrinkflation are all playing a part.

So we’ve got a bit of a paradox.

Shoppers still want value, but they’re much less willing to compromise on quality. If an own label product doesn’t deliver, it’s no longer the ‘safe’ option. It’s the first thing to go.

This is driving two big trends:

1. More shoppers are trading up within own label, choosing premium tiers
2. At the same time, choice is becoming more polarised – either value-led discounters or higher-end options

And the appetite for a little indulgence is still there. Globally, 54% of shoppers say they’re likely to treat themselves by upgrading to premium. That jumps to 58% for Gen Z and 61% for Millennials.

So value and premium aren’t opposites anymore – they sit side by side. Retailers need to find the right balance between the two when investing in own label if they want to succeed.

Why own label and brands need each other

It’s easy to frame this as a battle of own label vs brands, but in reality, they work best together.

Own label benefits from brands in a few key ways:

• Trust by association — sitting alongside well-known brands helps reinforce quality
• Price context — with branded products often carrying around a 26% premium, shoppers can clearly see the value

And brands benefit too:

• Increased trust in-store — nearly 60% of shoppers trust store brands because of the retailer, and that trust carries across the shelf
• Category growth — own label is driving growth in areas like ready-to-drink coffee and snack bars, lifting the whole category

NIQ data shows this clearly in the UK: in 2024, three major retailers delivered over 70% of private label growth and 86% of branded product growth simultaneously. Retailer strength lifts all boats, when strategy is aligned.

So, what does this mean for retailers and brands?

This isn’t about picking sides, but about getting the mix right.

• How do you grow own label without weakening brand trust?
• How do you introduce premium tiers without losing value-focused shoppers?
• How do you manage shelf space when digital and AI are increasingly pushing ‘good enough’ and lowest price to the top?

Execution is everything. The retailers that win will be the ones who really understand how shoppers behave — not just what they buy, but why they buy it. Range, availability, and in-store experience are all important.

And for brands, success will come from working with retailers, not against them.

Where Dee Set and Acosta Europe fit in

Dee Set, as part of the wider Acosta Europe family, sits right at that point where strategy meets the shelf, helping retailers and brands turn plans into reality.

That means:

• Bringing own-label and branded strategies to life in-store
• Striking the right balance between value, premium and innovation
• Making sure products are available, visible and easy to choose
• Supporting a joined-up approach across physical, digital and AI-led retail

Because in today’s world, shoppers are more open, less loyal and far more selective.

Own label hasn’t killed brands, but it has challenged everyone to raise their game. Those who get the balance right across price, quality, trust, and execution are the ones that will shape what the shelf looks like next.