Private Labels: from budget alternatives to the new power of modern retail

Private labels, which just a few years ago were perceived as products of limited quality, have today become one of the key pillars of retail development strategies. They are no longer synonymous with savings but have become symbols of conscious consumer choices - combining quality, accessibility, and authenticity. Modern shoppers are no longer guided solely by price; they expect products that align with their values and lifestyle. Private labels now effectively meet these needs, successfully competing with manufacturer brands.

According to the Dlahandlu.pl portal, private labels are among the fastest-growing segments of the Polish market. Their share in FMCG sales has already exceeded 23%, driven by rising prices and the need for assortment diversification among retail chains. Meanwhile, the PLMA European Retailer and Manufacturer Survey 2024 shows that the average share of private labels in Europe stands at 39%, with as many as 94% of retailers considering them “fully-fledged brands,” equal to manufacturer brands. Moreover, more and more chains are investing in premium and eco segments, recognizing the potential of healthy, local, and high-quality products.

Research shows that customers not only buy private labels more often but also increasingly trust them. The approach to positioning has changed, it’s no longer about being a “cheap alternative” but a carefully crafted offer responding to specific market needs. Retailers now treat their private labels as complete marketing projects, from concept and packaging design to consumer communication. As a result, store-branded products are gaining their own identity, and their development is increasingly based on research, trend analysis, and innovative formulations.

For manufacturers, cooperation within private label projects means not only stable contracts but also opportunities for expansion, both domestically and internationally. Joint projects with retail chains allow for the development of new product lines, better utilization of production capacities, and the building of a reputation as a reliable business partner. According to the PLMA 2024 report, rapidly growing categories include fresh products, frozen foods, non-alcoholic beverages, and household chemicals. At the same time, relationships between manufacturers and retailers are becoming more partnership-oriented, based not only on price but also on co-designing products, innovation, and supply chain transparency.

Private labels have also become a tool for building consumer loyalty. Retailers offering unique, exclusive products strengthen their bond with customers and increase brand attachment. High quality, engaging communication, and consistent visual identity make private label products a conscious choice, not merely a budget-friendly one.

The growing role of private labels highlights the importance of industry events that foster networking and innovation exchange. POLAGRA Trade Fair is one such space, connecting producers, retailers, distributors, and food industry experts for years. It showcases the latest solutions for trade, packaging, and production, helping to build relationships that turn into real business contracts. Equally significant for the development of the private label segment are the Marca Poland Trade Fairs, entirely dedicated to private brands. This is where market leaders meet to set development directions and shape the future of retail in Poland and Europe.

More information about Marca Poland Trade Fair: https://marcapoland.com/pl/