German grocery consumers increasingly favor private labels

Market data indicates a significant shift in German consumer behavior, with the market share of private labels rising from 41 percent in 2021 to 47 percent in 2025. This trend is particularly evident in categories such as butter, oils, coffee, and chocolate.

Research suggests that major manufacturer brands are becoming increasingly interchangeable to consumers. Retailers like Rewe have noted that customers are increasingly unwilling to pay significant premiums solely for brand names. In many product tests, private labels from discounters and supermarkets have performed as well as or better than expensive brand-name products.

When purchasing staples like butter, experts advise consumers to look beyond price and marketing terms such as ‘Alpenbutter’ or color. Factors such as milk fat content—where three-quarter fat butter contains 60 to 62 percent milk fat—and official trade classifications are more reliable indicators of product type. Additionally, consumer advocates note that retailers often use butter as a loss leader to attract shoppers.