In the 21st century, food prices have not stopped growing and growing. But in late 2021 and early 2022, something happened: growth accelerated rapidly. So much so that in the last three years the increase was 30 percent.

There are many more factors, but with these data it can’t surprise anyone that Spain has become the country that consumes the most “white label” products in Europe.

Spain, the white beacon of my hope. Private label brands (aka) represent 48.5% of the purchase value and 51% of the sales volume. As for spending, “Spanish families spend an average of 1,208 euros per year on these products.” That is, 78 euros (7% more) compared to 2023.

These are the results of the “Own Brand Study” that Aldi usually publishes every year. A very useful tool that not only helps us know the evolution of these products in Spain (where they have not stopped growing), but also helps us understand this phenomenon in a European context.

9.3% above the European average. In fact, Spain has clearly overtaken the countries that traditionally top the list: Germany (representing 43% of the basket value) and the Netherlands (41.3%). And only in hygiene and cleaning products does Spain come in second (42.5% compared to 44.2% in the Netherlands).

When we look at regional differences, we see that those consuming their own brands the most are Murcia (59.8%), Andalusia (59.3%), Extremadura (58.8%) and Castilla-La Mancha (57.9%). On the other hand, Galicia (40.9%), Basque Country (43.8%), Asturias (43.9%) and Cantabria (44.7%) have the lowest consumption.

“This was not the case until a few years ago.” As Hugo Liria, head of market research at Aldi Spain, explained at CincoDías, “the evolution of distribution in Spain and the growth of short assortment chains like ours or other competitors” have played a key role in this rise.

In fact, the three major white label distribution chains (Lidl, Aldi and Mercadona) currently hold 35% of the market share in the country. We should also add that, according to the Aldi report, most of the major national and regional chains have placed great emphasis on these lines of business to combat inflation. Mercadona or Dia have reduced their external brand assortment by more than 40% in five years

Is it a positive thing? Clearly, changes in consumption patterns have their positive aspects (they help increase the efficiency of the distribution chain as well as the savings) but they also have their problems. A few months ago, Kantar (the same consultancy firm that produced the Aldi report) announced that consumer innovation was at its lowest levels in history and directly blamed private labels for this.

To give you an idea, there are 43% fewer innovative products coming into supermarkets today than in 2010. And that’s a problem in a country with such a large food industry. According to Kantar, innovation in mass consumption is not only important for increasing sales for a brand, but also “a Positive impact on the entire market, benefiting all actors in the chain, ultimately impacting the end consumer.

Image | Michael Mozart

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