Spain: Further growth of Private Label Brands

Discount Retail Chains as Mercadona, Dia, Lidl and Aldi alone have together 40% market share in Spain, and more than 50% in certain assortment categories as drugstore or dry food. They build their assortments around high volume consumption, without paying too much attention to the manufacturers' brand proposals: in fact, they distinguish by having the lowest rates of product innovations.

These four Discount Retail Chains together represent two third of the total private label sales in Spain, due to their high sales volumes: respectively DIA 46.4%, Mercadona 62.9%, Aldi 74.7 % and Lidl 79.5%, for pre-packed products

A 2019 study of PLMA (Private Label Manufacturers Association), gives Spain the “honor” of being the most favorable European country for its Private Label Manufacturing associates: Spain had a share of 51% in volume, ahead of Great Britain with 47%, and Germany with 43% (the birthplace of hard discount, with private label only assortments).

The future path of Private Label will be determined, to a large extent, by the growth of the Discount Retail Chains. As none of them has any intention of substantially changing their commercial policy, the evolution of the Private Label market shares will automatically grow further.

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