Apr 2025

How is PL in Germany? Circana speaks

How is PL in Germany? Circana speaks

In the EU6 region (Germany, Italy, Spain, France, the UK and the Netherlands), inflation has brought PL growth back to pre-pandemic levels, a trend that continues even as inflationary pressure eases: the sector now accounts for 39% of the EU6 market, with a +2.6% increase in value.

As well as and more than in Italy, PL has a very strong position in Germany, with a value share at 40.2%, unchanged from the previous reporting period. In 2024, PL remains stable with an increase in value sales of +1.3%, slightly lower than the overall market growth (1.4%). The average price declined slightly (-0.4%), a sign that growth is mainly demand-driven, with volumes increasing by +1.9%. National brands, on the other hand, relied on price increases to sustain growth.

The best performing categories for private label products were cosmetics, personal care and OTC, which grew by 6.7% in value terms, and confectionery, which increased by 5.7%. The confectionery sector recorded the highest price increases for both segments, due to rising raw material costs.

Large scale consumer goods growth is supported by both on-shelf distribution and promotions. While brands intensify promotional activities with a 4.3% increase, private label products strengthen their on-shelf position, with non-promotional value increasing by 2.7%, compared to 0.3% for national brands, driven almost exclusively by prices. PL's promotional share stood at 18%, down 1.1 percentage points, while that of brands reached 31.1%, up 0.8 percentage points.

In 2024, PL products maintained stable prices, while brands continued to increase them (+3.2%). Private label price by volume decreased by 0.4%, widening the price gap with brands to an average difference of €1.20, up 7%. Categories such as confectionery, hot drinks and pet products show increasing market segmentation, with a widening price differential between brand and private label.

PL products are establishing themselves as key players in the German market, thanks to an increasing focus on sustainability and good value for money. They are transforming from generic products into established brands that know how to focus on quality and innovation and gain support from consumers. The inflationary environment further strengthens their position and growth is expected to accelerate in 2025. Their ability to adapt to consumer trends and to develop premium offerings makes them increasingly competitive and attractive to a demanding public.

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