Enter practically any supermarket in Germany at present, Berlin, Munich, Cologne, any where you like, and you cannot fail to notice just one thing: private labels. Shelf after shelf, not only cereal and pasta, but also dairy and frozen, even ready meals. It may be Edeka, Rewe, or Lidl on the logo, but the owning chain is the chain.
It is not a minor side story. Germany Private Label Growth is one of the biggest shifts in retail. It alters the purchases of the shopper, the brands that can be sold by the shopper, and the margin made by retailers. And it’s moving fast.
The reason why the number of private labels continues to increase in Germany
German customers have been price conscious. It has been like that over decades. However, following inflation, energy surges, and increased household expenses, an increasing number of consumers are simply choosing supermarket brands blindly.
The numbers back it up. Close to four of ten grocery sales are now comprised of the use of the private labels. It is one of the highest rates in Europe. And it’s sticky. Customers do not simply rush back to national brands even with recovery in incomes. They have already tried the store brand chocolate or coffee and said, “yep, that is good enough. Sometimes even better.
The other reason: suppliers are under pressure. The big food companies have the disadvantage of a greater input cost whereas supermarkets require smaller prices. Once that becomes untidy, retailers go all in on white labels. Why? The reason is they determine the price, brand, and shelf.
Edeka: national credibility, local roots
Edeka is the largest group of supermarkets in Germany. However, it is not an easy chain, it is constructed with regional co-ops. That is, each area is free to carry stock according to the interest of people. That is the advantage of the private labels.
Their hierarchy is intelligent: Gut & Gunstig deal with a low-end, then there are organic and premium options that introduce a choice. Edeka also ventures in local products e.g. local honey or beer under its own labeling. That provides shoppers with a combination of national pride and low cost.
Trust matters too. In 2025, Edeka was also awarded Best Food Retailer in Germany as the 6th time in a row. Awards such as that create credibility and when customers have faith in the shop they have faith in the brand of the shop. This is the reason why growth in Edeka under the label of private label is not only about price but also about image.
Rewe: accelerate push, prospective attention
Rewe has been forceful towards its proprietary branding strategy. Their assortment is all-inclusive: ja! when it comes to entry price, Beste Wahl when it comes to mid and rewe Bio or premium when it comes to more money. On top of that PENNY, the discounter arm of Rewe, and the group covers all of the segments of shoppers.
Recent figures indicate that Rewe is selling its own brand more than branded goods in 2024. That is an indication that shoppers trust the lines and believes that they are high-value.
Rewe also takes advantage of its sustainability and health push through the use of private label. Plant-based is a big focus. They have also launched additional meat alternatives under their brand, which are associated with the long-term protein strategy objectives. Not only trend chasing, but also about future-proofing. Rewe desires its labels to be in the limelight as more Germans change their diets.
And don’t forget digital. The online store and app by Rewe tend to display the online retailer’s personal labels at the very front of the search results. That pushes the customers to their brands without their awareness.
Lidl: discounted DNA, but in high-end direction as well
Lidl is fundamentally the poster child of the private label. It relies on the discounter model: it has smaller ranges, primarily owned brands, and everyday low prices. That hasn’t changed. What is different however is the ambition of Lidl.
They are not merely stocking shelves with low end essentials. The introduction of premium own-label by Lidl in such categories as meat, bakery and vegan. An example is their Butcher Specialty line. Meat is one of the areas where people tend to believe but Lidl wants to demonstrate that their brand is equal to the national brands.
Scale is another weapon. Lidl can be found under the Schwarz Group that generated over EUR175 billion revenue in the previous year. That scale assists them to manufacture at reduced cost and invest in packaging as well as accelerate reformulations. In instances of taste test failure, Lidl is able to correct it faster than a brand entangled in procedure internationally.
Where innovation drives expansion
Private labels no longer are copies only. They are experimental zones of new concepts. In Edeka, Rewe and Lidl, four areas are distinguished:
- Plant-based: plant-based burgers, dairy-free milks, dairy-free protein snacks – house brands sell quickly in this category.
- Health & clean labels: less sugar, less salt, more transparent ingredients.
- Sustainability: less weight, recycled plastics, even labels of carbon footprint on certain products.
- Speed: the retailer has control over the brand, thus, they can roll out, work, and discontinue lines much quicker than A-brands.
This makes the private label appealing not only to typical budget customers, but even to younger and more environmentally-conscious consumers.
Not all smooth sailing
There are risks. Raw material and packaging expenses continue to swing, and that is directly impacted on the private labels. The pressure is significant on suppliers of contract-manufactured products, some of them might leave the market or merge and retailers will now have only a few partners to deal with.
Then there’s brand pushback. Large brands are not simply letting go. They are making deeper cuts, doing loyalty pushing and investing in new formats to gain shelf space back. Brands are also more robust in certain categories such as in soft drinks or chocolate.
Another wild card is regulation. There is an increase in the strictness of labelling laws, sustainability claims and origin rules. Greenwashing is something the retailers cannot afford, yet they must maintain a low cost.
What shoppers actually see
- Practically, it is the case that German shoppers enter shops and observe:
- Edeka has its Gut & Gunstig milk competing with the brand-name competitors.
- Rewe ja! pasta packs were stacked at the price of EUR0.49.
- The Deluxe range of lidl that has some of the best Christmas products at half the price of the brand.
The show has modified as well. Private label packs no longer appear cheap. Smooth fonts, appealing colours, eco-friendly packaging signals, it does not seem an option, it seems mainstream.
Wider impact of Germany Private Label Growth
Germany sets the pace for Europe. When Edeka, Rewe, or Lidl scale private labels, it creates ripple effects for suppliers and other markets. Contract manufacturers in Eastern Europe or the Netherlands often supply German chains — when volumes grow here, it pushes capacity abroad too.
Global FMCG companies also treat Germany as a key test bed. If their brands lose share here, they know the model could spread to France, Spain, or Poland next.
Outlook
Looking forward, Germany Private Label Growth looks solid. Value is still key, and private label delivers that. But premiumisation will also expand — people want affordable treats, and retailers can supply those under their own brands.
Digital will keep boosting visibility. Apps, loyalty programs, and online baskets often default to the store brand. That’s subtle but powerful.
And we’ll see more sustainability woven in: recycled packaging, clearer labelling, maybe even climate scores. Private label is the perfect tool for supermarkets to push those agendas, because they control every detail.
So, don’t expect private labels in Germany to shrink back. Edeka, Rewe, and Lidl will keep raising the stakes. For suppliers, that’s tough. For shoppers, it means more choice and often better prices. For the supermarket groups, it’s the lever that makes everything else possible.
