For many shoppers, it is becoming the smarter first choice.
That is what makes this latest German retail insight so relevant.
According to ESM, shoppers are turning to private labels for a mix of structural reasons: many no longer believe branded products justify the premium, 39% see branded pricing as profit-maximisation rather than better quality, price remains a major decision factor, retailer-brand loyalty is now well established, and perceived quality has improved significantly.
From our perspective, this is about more than pricing pressure. It is about how value is communicated, repeated and reinforced. When shoppers consistently choose private label, that usually reflects a combination of trust, visibility and relevance at the point of decision. That makes this a communication challenge as much as a product or pricing one. The broader direction of travel is echoed elsewhere too: PLMA notes that 66% of German shoppers now choose retailer brands for value for money.
For retailers, the implication is clear: if private label is a growth engine, it needs to be made easy to notice, easy to compare and easy to trust across every activation channel. That is where consistent local and promotional communication still matters.
The takeaway is simple:
private label wins when value is not just cheaper — but clearer.
Germany is showing that this shift is becoming embedded, not temporary. The real question now is:
how many other European markets are following the same path?