Retail Analysis

European retail: trends driving growth in 2026

12 December 2025

Understand the forces defining European grocery retail in 2026 and discover actionable insights to help your business succeed.

The European grocery retail market is set to hit €3.1 trillion by 2030, but with inflation still driving growth, how can businesses change the script to unlock volume gains?

Our new European retail trends 2026 report uncovers the forces defining how businesses compete in 2026 and reveals the actions retailers and suppliers must take to drive growth.

Five trends shaping European retail

Retailers across Europe are preparing for significant shifts in consumer expectations and operational priorities. Our research identifies five key trends that will determine success in 2026:

Driving value will remain a key priority as shoppers seek quality at affordable prices. We expect to see retailers enhance private label ranges, introduce loyalty-driven promotions, and explore innovative pricing strategies to maintain competitiveness.
Optimising retail media is becoming a top priority, with retailers transforming in-store assets into advertising platforms. Rollouts of digital screens, AI-driven targeting and the expansion of retail media networks will play crucial roles in creating new revenue streams.
Trust in technology reflects the growing reliance on digital solutions. From AI integration to robotics and advanced payment systems, retailers are accelerating tech adoption to improve efficiency and customer experience.
Targeted health highlights the need for clearer nutritional guidance and personalised advice. Retailers will offer healthy subscription options, promote active food zones, and provide tools to help customers make informed choices.
Visible sustainability will dominate as retailers place eco-friendly practices front and centre. Initiatives such as upcycling food waste, sustainable packaging, and regenerative farming will help shoppers transition to greener lifestyles.

Across Europe, future success will require using technology for hyper-efficient personalisation, making value accessible to all, and driving initiatives to reach health and sustainability goals.

— Sneha Haria, Insight Manager at IGD

Regional highlights

For each trend, we showcase regional examples of activation and highlight the countries and regions taking the lead on these trends. For example:

Germany, known for discount chains like Aldi and Lidl, continues to demonstrate effective value delivery. Shoppers enjoy quality products at reasonable prices, thanks to streamlined supply chains, bulk purchasing, and a focus on operational efficiency.
The UK is leading the way in retail media, standing out for advances in using digital screens, branded bays, and digital innovations such as scan-as-you-shop handset capabilities and geolocation.
Visible sustainability is seen across Europe, but it manifests in different ways. Western Europe and the Nordics prioritise product and packaging innovation to combat food waste and reduce carbon footprints. Meanwhile, Eastern Europe tends to focus on deposit return scheme (DRS) implementation and selling discounted fruit and vegetables to reduce food waste.