Private label products are rapidly reshaping the European retail landscape. From grocery store shelves to supplement counters, more consumers are reaching for private label options—attracted by competitive prices, consistent quality, and growing brand trust. But what exactly is private labeling, and why is it thriving in Europe? This comprehensive guide explores the growth of private labels across the EU, key opportunities and challenges, and how you can start your own private label brand.

What is Private Label?

Private labeling refers to the practice where a retailer or company sells products under its own brand, even though they are manufactured by a third party. Unlike white labeling, where the same product is sold to multiple brands, private label products are often customized or branded exclusively for one company.

Examples of private label products in Europe:

  • Tesco Finest (premium groceries)
  • Aldi’s “Mamia” and “Harvest Morn” (baby food, cereals)
  • Lidl’s “Deluxe Deli” and “Chef Select” (ready meals, gourmet food)
  • Lidl’s “Cien” (personal care)
  • Aldi’s “Lacura” (cosmetics)

These brands often offer comparable or better quality than national brands at lower prices, making them a favorite among value-conscious European consumers.

The growth of Private Label in Europe

Private label is evolving rapidly across Europe, with high-quality store brands gaining major ground. In 2024, private label accounted for 38.1% of grocery sales across the continent, totaling €352 billion. Market share increased in more than half of tracked European countries, with Switzerland leading at 52%, and steady growth seen in Spain, France, and Portugal.

Younger consumers are a major force behind this shift. They’re more likely to embrace private label, seeing it as offering better value without sacrificing quality. Key growth areas include protein-enriched foods, plant-based alternatives, and products with eco-friendly packaging.

Retailers are also investing heavily in premium lines. Upscale private label ranges, like Tesco Finest, have seen double-digit growth in 2025, showing that customers are willing to pay more for quality and ethical sourcing.

As inflation, sustainability, and digital retail continue to reshape the market, private label brands in Europe are well-positioned not just to compete but to lead.

Benefits of Private Labeling in Europe

Private labeling offers European businesses an effective way to build customer loyalty, increase control, and improve profit margins. Here’s a deeper look at the key advantages:

Higher profit margins

One of the most compelling reasons companies choose private label is the significantly better profit potential. By cutting out the cost of name-brand marketing and third-party distribution markups, businesses can control pricing while preserving healthy margins. For example, a private label snack item manufactured for €0.40–€0.60 per unit can often be sold for €2 or more, especially when positioned as organic or high-protein.

Brand control

Private labeling gives you full control over branding, packaging, and marketing. You shape how the product looks, feels, and speaks to your audience. This creative freedom helps build a distinct identity, making it easier to stand out and connect with niche markets or loyal customer bases.

Market differentiation

Private label lets you offer exclusive products that customers can’t find anywhere else. This uniqueness builds brand loyalty and reduces direct competition. When your formula, design, and pricing are one of a kind, customers return specifically for your offerings. This is especially true in emerging categories like functional gummies, where partnering with specialized gummy manufacturers allows businesses to create unique formulations and flavors.

Flexibility and Speed to Market

Working with private label manufacturers—especially those based in Europe—lets you move faster than traditional brand cycles. You can test new product ideas quickly, make changes based on feedback, or launch seasonal items without long delays. European suppliers often have shorter lead times and understand local compliance needs, making it easier to bring products to market efficiently while reducing shipping and import complications.

How to Start a Private Label Business in Europe

Launching a private label brand in Europe requires planning, the right partnerships, and compliance with regional laws. Here’s a step-by-step overview:

  • Research Your Market: Identify a product category with growing demand and room for differentiation. Focus on trends like sustainability, wellness, or affordability. Analyze what’s popular in specific countries or consumer segments.
  • Choose the Right Product: Select a product you can improve or position uniquely—whether by formula, price, design, or values (e.g. vegan, organic, eco-friendly).
  • Find a Trusted Manufacturer: Work with a reputable EU-based manufacturer that understands European compliance. Ask for product samples, certifications (e.g. GMP, ISO, EcoCert), and clear terms on pricing and lead times.
  • Create a Distinct Brand: Develop branding and packaging that appeals to your target audience. European shoppers value quality design, clear labeling, and transparency.
  • Meet Legal & Regulatory Requirements: Ensure products comply with EU laws—this includes labeling, safety testing, registration (for food, cosmetics, or supplements), and tax/VAT setup.
  • Launch and Market Your Product: Build a strong online and offline presence. Use platforms like Amazon Europe, Shopify, or partner with local retailers to reach your audience.

How to Find Private Label Manufacturers?

Torg is the best private label platform for finding manufacturers. Focused primarily on food and beverage, it connects you with over 150,000 vetted manufacturers and lets you filter by country, certification, and production type. Its AI-powered RFQ system can instantly match your request with the most relevant manufacturers, saving you time and helping you connect with reliable partners faster than traditional sourcing methods

Trade shows such as PLMA and SIAL are also good places if you prefer to meet suppliers in person. However, attending trade shows can be time-consuming and costly—especially for startups or small businesses. It also takes longer to compare multiple suppliers or follow up after events, which may delay your sourcing timeline.

Top Private Label products in Europe

Private label continues to grow across key product categories in Europe, especially where consumers value affordability, quality, and ethical production. Leading segments include:

  • Food & Beverages: Everyday essentials like pasta, canned goods, dairy, snacks, and frozen foods dominate. Many supermarkets now offer premium and organic private label ranges that rival national brands.
  • Health & Wellness: Vitamins, supplements, and functional drinks are in high demand—especially those focused on immunity, digestion, or fitness. Private label offers trusted alternatives at lower prices.
  • Skincare & Cosmetics: Natural and vegan beauty products, including cleansers, serums, and creams, are rapidly growing. European consumers favor clean formulas and minimalist branding.
  • Household Cleaning Products: Eco-friendly and cost-effective options—like detergents, dish soap, and multi-surface cleaners—perform strongly, especially when paired with sustainability messaging.
  • Personal Care Essentials: Items such as soap, shampoo, toothpaste, and hygiene products remain staples for private label lines, offering both value and convenience.

These categories offer strong market potential and are ideal starting points for brands entering or expanding in Europe.

Challenges in the European Private Label sector

While private labeling offers clear advantages, it also comes with challenges—especially in Europe’s diverse and regulated markets.

First, regulatory compliance is critical. EU rules around product safety, labeling, and environmental impact are strict and vary by category. Brands must ensure that products meet both EU-wide and local standards, which can be complex without the right manufacturing partners.

Competition is also increasing. With many businesses turning to private label, standing out requires strong branding, unique packaging, or a clear niche. Without differentiation, products risk getting lost in a crowded market.

Supply chain disruptions can further complicate things. Even with European suppliers, delays in production, packaging, or ingredient sourcing can affect launch timelines and customer satisfaction.

Despite these challenges, companies that invest in brand strength and smart partnerships can thrive.

Conclusion

Private label is no longer just a budget alternative—it’s a strategic opportunity. As European consumers seek value, quality, and trust, private brands are gaining ground across every sector. With the right approach and partners, businesses can build strong, profitable labels that resonate in one of the world’s most competitive retail markets.

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