Lorraine Williamson
Spaniards are opting en masse for private labels in the supermarket, even though prices have also risen sharply since the pandemic. Value for money remains the main reason for 74% of the Spaniards for choosing private label products. This is followed by price (52%) and promotions (36%).
The shopping basket of Spanish consumers already consists of 51% private label products. Moreover, 44% of Spaniards indicate that they have started buying more in the past year. 60% say they have done so since the Covid-19 pandemic.
On average, a Spanish household spends €1,208 per year on its own brands. That is €78 more than last year, an increase of 7%. Its importance is so great that a third of consumers have changed their usual supermarket because of the price of their own brands.
Price, quality and assortment of private labels play a role
The growth of private labels in Spain is due in large part to an increase in the purchase frequency of these products. Consumers are now going to supermarkets twice a week, which is 2.2% more than in 2023. Furthermore, they are more likely to opt for private labels, the prices of which, despite the increase in recent years, are on average 15% lower than those of A-brands.
In addition, consumers are noticing that the range of own-brand products in supermarkets and hypermarkets has increased. 8 out of 10 Spaniards say there is more variety now. The popularity of these products has also risen because the quality is now better. 79% of consumers give this as an argument.
Categories with the most growth
All private label categories are showing growth, with the exception of fresh products. In terms of volume, the private label gained market share in 9 out of 10 categories compared to the previous year. The increase was mainly seen in the following categories:
- Milk and milkshakes: +4%
- Detergents: +3.6%
- Baby products: +3.1%
- Cheeses: +3%
Largest consumption in Europe
This boom has made Spain one of the European countries with the highest consumption of private label products. Spain exceeds the European average of 39.2% by more than 9%. This puts Spain ahead of Germany, the Netherlands, the UK and France. In Europe, own-brand sales grew by 5.7% and volume by 2.4% over the past year.
Also read: Why private labels are increasingly popular in Spain