Private label in Europe is moving beyond its traditional value positioning. Retailers are using trend‑led innovation, partnerships and responsible development to strengthen relevance, differentiation and competitiveness.

IGD’s four global private label trends are increasingly visible across categories as retailers and private label suppliers work together to meet evolving consumer expectations.

Here we look at the four trends and how they are playing out across European retail.

Staying on-trend: health and lifestyle trends shaping private label

Private label suppliers and retailers are responding quickly to emerging consumer behaviours, using their agility to outpace established brands. Health, value and modern lifestyles continue to shape innovation across Europe. Lower sugar, high protein and responsibly sourced products are helping shoppers balance wellness priorities and inflationary pressures without compromising taste or quality.

In Germany, ALDI Nord’s “less sweet” Barissimo iced lattes tap into trends for chilled coffee and healthier products. They contain less sugar without compromising on taste. The packaging is designed for immediate, on-the-move consumption. They’re also made domestically using responsibly sourced coffee. This shows how private label can deliver lifestyle aligned upgrades at accessible prices.

Cross-collaboration: technology partnerships accelerating innovation

Retailers are increasingly partnering with external businesses to create more distinctive private label experiences. Collaboration now extends into technology, where AI enabled platforms and supply chain partners are helping retailers reduce complexity, shorten launch times and respond more effectively to changing consumer demand.

Tesco has partnered with Keychain, an AI‑powered platform that simplifies how private‑label products are created. Keychain brings product design, sourcing, compliance, and manufacturing oversight into one place, giving retailers a full view of their supply chain and helping them develop products much faster. Already used by major global retailers and brands, the platform matches companies with the right manufacturers and removes much of the complexity that slows private label innovation. This demonstrates how technology partnerships are becoming central to competitive advantage.

Responsible shopping: wellness and sustainability expectations reshaping ranges

Responsible shopping now reflects the expectation that products must support personal wellness while also delivering environmental integrity. Retailers are responding with sustainable formulations and nutrient dense innovation that aligns with new health behaviours.

dm launched sustainable laundry detergents under its Denkmit private label. The products use innovative CO2-based surfactants, significantly reducing the carbon footprint by recycling industrial emissions into cleaning ingredients across its 2,150+ stores.

Strategic development is also shifting toward nutrient-dense sub-brands that address the rise of GLP-1 medications and clinical weight management by prioritising high-protein and high-fibre formulations. Co-op and M&S started 2026 by launching GLP-1-friendly products for shoppers with reduced appetites. Co-op's Good Fuel offers high-protein, high-fibre mini meals, while M&S introduced Nutrient Dense salads and snacks developed with the BNF (British Nutrition Foundation).

Beyond food: private label is expanding into higher value non-food categories

Retailers are expanding private label into non-food categories where consumers increasingly seek quality, performance and value. We’re seeing investment in elevated pet nutrition, sophisticated beauty and high-performance household goods. These are areas where private label can challenge brand dominance through targeted innovation.

Sainsbury’s is expanding its private label dog food range to include more premium, health-focused options. By offering high-quality ingredients at competitive prices, the retailer aims to capture market share from specialist brands while providing affordable nutrition for pet owners in the UK.

By tailoring personal care for underserved demographics and engineering high-quality beauty swaps, retailers are overcoming the traditional preference for big brands and proving that private label can be effective. Superdrug celebrated its £20m (US$28m) investment in own-brand beauty and skincare ranges over the last five years via its SuperSwaps pop-up. The event showed how customers could save money by choosing high-quality own-brand alternatives to premium, well-known brands.

What does this mean for suppliers?

These four trends highlight how private label is becoming a more strategic and future focused part of retail growth. For suppliers, the shift creates an opportunity to play a more influential role in shaping category direction. Retailers are looking for partners who can bring products aligned with trends, faster development cycles and deeper technical expertise that help them stay ahead of changing consumer needs.

There is also growing demand for suppliers who can support responsible innovation, whether through sustainable materials, lower impact processes or nutrient dense product development. As private label expands further into non-food categories, retailers will be looking for elevated product performance, credible alternatives to established brands to help them build trust in categories where quality and efficacy are non-negotiable.

Suppliers who combine agility, insight and strong execution will be central to defining the next phase of private label development in Europe.

Read our global private label trends report for more detail on the four trends