The Rise of White Label Brands in Spain’s Retail Market
White brands, often viewed as the underdogs of the retail landscape, are now gaining substantial traction in Spain. The growth of these private labels is evident across various supermarket chains, particularly within the ‘short assortment’ category. Chains like Mercadona, Lidl, and Aldi have led this charge, with others like Alcampo and Carrefour adapting their offerings to shine a spotlight on white brands.
Growth Metrics and Market Dynamics
Recent data from Worldpanel by Numerator reveals a notable ascent in the market share of private labels in Spanish supermarkets. For instance, 2023 saw Mercadona’s Hacendado brand achieving a significant milestone, with white brands constituting 72.9% of its sales. By 2024, this number surged to 77.8%. Remarkably, Lidl takes the lead, with private label products accounting for a staggering 80.7% of its sales, though it recorded a slight decline compared to earlier trends.
Comparative Analysis of White Label Sales
| Chain | % of White Label Sales 2023 | % of White Label Sales 2024 | % of White Label Sales 2025 |
|---|---|---|---|
| Lidl | 79.7% | 81.9% | 89.7% |
| Mercadona | 72.9% | 74.5% | 77.8% |
| Aldi | 68.8% | 69.1% | 74.5% |
| Dia | 54.2% | 56.3% | 65.1% |
| Consum | 33% | 35.9% | 37.4% |
| Carrefour | 29.3% | 31.4% | 33.3% |
| Eroski | 25.6% | 28.4% | 31.2% |
| Alcampo | 21.5% | 24.3% | 23.8% |
Factors Fueling the White Brand Surge
1. Emergence of Short Assortment Chains
The boom in private labels can be partly attributed to the rise of short assortment chains that focus on a limited range of products. Chains like Mercadona, which holds a 27% market share, have effectively capitalized on this trend. Other notable mentions include Lidl and Aldi, contributing to the evolving landscape.
2. Strategic Promotions and Shelf Space
Supermarkets have been strategically enhancing their brand promotion efforts over the past few years. A 2024 Kantar study indicated that from 2018 to 2023, the supply of private label products increased by 13%, while third-party brands decreased by 23%. This shift reflects not only a change in consumer preference but also a calculated strategy by retailers to prioritize their in-house brands.
Cultural Shifts and Consumer Preferences
The tide is turning in consumer perceptions of white brands. They are shedding the stigma associated with being low-quality alternatives. Brands like Hacendado have successfully positioned themselves against premium offerings, often becoming preferred choices for certain consumers.
Moreover, pricing strategies play a crucial role. Price differentials, with third-party items often priced 5% to 160% higher than private labels, further incentivize buyers to lean towards value-oriented choices.
Conclusion: The Future of White Brands
The pressing question remains: how far will white brands like Hacendado and Auchan be able to expand their footprint? As competitive dynamics evolve, these retailers may face challenges in specific niches traditionally dominated by big brands. Industry insights from Worldpanel suggest a potential “slowdown” in the growth of private label market shares—it will be intriguing to monitor how these brands navigate this landscape.
Images | Eroski Group (Flickr)
Source | elEconomista.es