So supermarket brands beat the growth of traditional brands

Procter&Gamble's turnaround has made headlines: after decades of resistance, the FMCG giant has decided to open up to private label (pl) or private label (mdd) production. In essence, production destined not for its own brands, but for those 'signed' by supermarkets (with its own name or others of fantasy but always under the control of the same large-scale retail chain) to market a whole series of products commissioned to third-party companies (in the agri-food and other sectors) that produce under another more or less well-known brand, or even just for third parties.

It is the imprimatur to what many food companies have long understood: it is impossible not to ride the wave of a dynamic business that is advancing faster than the total mass market (+3.4% versus +2.4% in value in 2025). In times of reduced spending volumes such as the current ones, pl is eroding ground for branded companies: while in 2019 it covered less than 27% of spending, now the share has risen to 31.9% of the total FMCG market (39.5% in Europe), developing a turnover of EUR 32 billion, Niq estimates. Further growth is expected this year, also in light of the 18% of Italians who say they want to increase their purchases against the 7% who want to turn more to 'traditional' industrial brands. But it is above all the figures on spending cuts that give us pause for thought: 8% intend to buy less private label, 21% less big brands (source: Nomisma).

"The world is changing," comments Mario Gasbarrino, managing director of Decò Italia, which manages private labels for the more than 500 Decò supermarkets in central and southern Italy. "The technological and production barriers that allowed brands to grow have collapsed and today the brand is often no longer worth the candle. But factories cannot stop because they need to produce. And private labels are demanding ever greater quantities'. It is not just a question of volumes. The pl are benefiting from the 'endorsement' of the production sector. The fact that behind supermarket-branded pasta or biscuits there is a known industrial producer is considered a very or fairly decisive factor for purchase by 74% of Italians. And 72% would be more inclined to buy them if they knew the name of the producer, reveals a survey by the Piepoli Institute.

An analysis conducted by Teha Group for Adm (Modern Distribution Association) shows that 37% of copackers are companies with less than 10 million euro turnover, 33% medium-sized companies (up to 45 million euro) and 30% large companies. These are often leading names in the made-in-Italy sector, such as F.lli Polli, Salumificio Fratelli Beretta, B&G/ Limmi and Roncadin, which were awarded as the best pl suppliers at the last Marca trade fair. Gone, then, are the days of the opposition between branded and private label industry. Now most food&beverage companies see PL as a complementary business to their own brands and invest in it.

Between 2020 and 2025, the share of companies that realise more than half of their turnover with MdPs has risen from 29% to 41% and the share of those who depend on them for more than 80% (10% of the total) has doubled. For companies, partnering with MdPs means making a proactive choice to keep up with the market, reach new territories and remain competitive. But it can also become a driver of growth and productivity.