The Rise of Private Labels: A New Era in Plant-Based and Snack Markets

June 12, 2025, 11:09 am
NielsenIQ
NielsenIQ
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The landscape of consumer goods is shifting. Private-label products are no longer the underdogs. They are becoming the champions of the plant-based and snack markets. This transformation is not just a trend; it’s a revolution.

In Europe, private-label products are driving the growth of plant-based retail sales. Data from GFI Europe reveals a compelling narrative. Between 2022 and 2024, countries like Germany, France, Italy, and Spain saw a surge in private-label sales. In Germany, private-label sales skyrocketed by 41.4%. Meanwhile, branded products took a hit, declining by 8.3%. The plant-based market in Germany grew by 6.8%, reaching €1.68 billion.

France mirrored this trend. Private-label products increased by 21.6%, while branded options dipped by 1.2%. The plant-based market there expanded by 20.5%, totaling €537 million. Italy and Spain followed suit. Italy's private-label sales rose by 17.4%, with the overall market growing by 16.4% to €639 million. Spain saw a staggering 32.3% increase in private-label sales, contributing to a 14.4% market growth to €491 million.

These figures tell a clear story: private-label products are reshaping the plant-based market. They offer affordability and accessibility. Consumers are drawn to these options, especially in times of economic uncertainty. The appeal is simple. Private labels provide quality at a lower price.

However, not all regions are experiencing this growth. The Netherlands and the UK present a different picture. In the Netherlands, overall plant-based sales fell. Yet, plant-based meat options, like mince and strips, held their ground. Their affordability and versatility made them resilient. In the UK, innovative products outperformed cheaper private-label options. Despite claims of a shift towards less processed foods, plant-based meat continues to thrive.

Household data reveals intriguing insights. In Spain, 46% of households purchased plant-based milk at least once last year. In Germany, the figure was 37%, and in the UK, it stood at 32%. Nearly 10% of milk sold in Spain was plant-based. This suggests a growing acceptance of plant-based alternatives.

Yet, branded products still play a crucial role. They drive smaller categories like plant-based cheese and seafood. Taste and perceived quality are key factors in these segments. Improving flavor and reducing prices will be essential for broader market penetration.

As the plant-based market flourishes, the snacking sector is also undergoing a transformation. Grocers are caught in the middle of a snacking shift. NielsenIQ reports that grocers sold nearly 160 million bags of chips and other snacks over the past year. However, they lost around 56 million snack unit sales to club and mass merchandisers.

Consumers are becoming more price-conscious. They are cutting back on snack spending and favoring larger pack sizes and private-label options. The highest-spending group, those allocating over a quarter of their food budget to snacks, has shrunk. In contrast, more consumers now spend up to 10% of their budget on snacks.

Retailers offering private-label snacks are well-positioned to thrive. A staggering 80% of consumers believe private-label snacks match or exceed the quality of name brands. Gen Z, in particular, holds a favorable view of private labels. This generation is shaping the future of consumer preferences.

E-commerce is also gaining traction in the snack market. Shoppers are increasingly turning to online platforms for their snack purchases. This shift indicates a broader trend towards convenience and accessibility.

Despite the challenges, grocers remain the primary destination for snack purchases. They are followed by mass merchandisers and dollar stores. This loyalty underscores the importance of physical retail spaces in an evolving market.

The rise of private labels in both plant-based and snack markets signals a significant shift in consumer behavior. Price, quality, and convenience are driving this change. As consumers become more discerning, brands must adapt.

The future is bright for private labels. They are not just filling shelves; they are filling a need. The demand for affordable, quality products is here to stay. Retailers must recognize this trend and respond accordingly.

In conclusion, the growth of private-label products in the plant-based and snack markets is a testament to changing consumer preferences. As the landscape evolves, brands must innovate and adapt. The era of private labels is just beginning. Embrace it.