- Ananda Roy
- Dec 16, 2025
- 3 min read
Supermarkets emerge as the key battleground as Private Labels and Brands compete for share
Confectionery and Drinks drive strong value gains as Alcohol declines
London, 16 December 2025 – Private Labels are tightening their grip on Europe’s grocery market, according to new data from Circana’s latest Demand Signals CPG Category Monitor report for November.
Private Labels now account for 42% of all CPG value sales across the EU6, worth €317 Bn (Circana’s largest European markets – France, Germany, Italy, Spain, Netherlands and UK) and their presence is even stronger in supermarkets, where their value share has reached 44% (€175 Bn). With supermarkets acting as the most influential channel for both Private Labels and Brands, this shift marks a significant moment for the retail landscape.
Circana’s latest analysis shows that total inflation across the EU and UK reached 2.2% year on year, measured over the 52 weeks to September 2025, driven by higher inflation rates of 3% or more in countries such as the UK, the Netherlands and Spain, and reaching peak levels for 2025 in France and Germany. While food inflation has eased to 3.0%, it remains ahead of levels in Italy, the Netherlands and the UK. Despite this inflationary backdrop, CPG performance has continued to improve. Over the last 52 weeks, value sales reached €22.6 billion, growing by 3.1%, while unit sales rose by 0.8%. These increases were driven overwhelmingly by Edible categories, which were responsible for more than 90% of total value growth.
Ananda Roy, Senior Vice President of Strategic Growth Insights, Circana said: “Private Labels are now firmly embedded in Europe’s grocery market, and their strength in supermarkets gives them a clear advantage as economic pressures continue. With inflation rising and shoppers feeling the strain, we expect Private Labels to gain further momentum through the rest of 2025. Brands will need to be far more tactical with promotions, pricing and innovation if they want to stay competitive.”
Supermarket competition intensifies as Brands cut ranges faster than Private Labels
Across Edible categories, Private Labels have delivered more than half of all value growth and accounted for three-quarters of unit growth. Categories such as Confectionery saw strong value gains, with a 6.8% increase largely driven by sharp unit price rises, particularly in Chocolate. Here, Private Labels increased prices at nearly twice the rate of Brands. Drinks also performed strongly, with 6.5% value growth led by Bottled Water, Carbonates and Coffee, and similarly, Chilled & Fresh climbed 5.1%, helped by dairy staples like Cheese. Alcohol, however, continued to struggle, with declines across major categories including Beer, Wine and Spirits, although smaller segments, such as RTD Spirits, posted growth.
Competition within supermarkets remains intense. Over the past year, Brands have reduced their average range more aggressively than Private Labels across both Edible and Non-Edible categories. And while Private Label share in supermarkets has held steady across the EU6 in the last 13 weeks, there have been slight dips in Spain, the Netherlands and France.
For more in-depth category information, that includes total CPG value, volume and unit sales changes, download the analysis here.
The Demand Signals CPG Category Review for November 2025 covers the last 52 weeks to September 2025, using Total Store Data across France, Germany, Italy, the Netherlands, Spain and the UK.
About Circana
Circana is a leader in providing technology, AI, and data to fast-moving consumer packaged goods companies, durables manufacturers, and retailers seeking to optimize their businesses. Circana’s predictive analytics and technology empower clients to measure their market share, understand the underlying consumer behaviour driving it, and accelerate their growth. Circana’s Liquid Data® technology platform is powered by an expansive, high-quality data set and intelligent algorithms trained on six decades of domain expertise. With Circana, clients can take immediate action to future-proof and evolve their growth strategies amid an increasingly complex, fast-paced, and ever-changing economy. Learn more at circana.com.
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