Why the market rewards those selling under their own brand
A historic figure that changes the rules of the game
In the 22nd Circana 2026 Report on the evolution of private label in Italy, the headline figure is a record: private label has reached a 30.4% omnichannel market share, with projected revenue of €31.5 billion. For the first time in the history of Italian retail, nearly one in three products sold in modern retail channels bears the retailer’s brand rather than that of an industrial manufacturer.
This is not merely random or cyclical growth. In an economic climate marked by cautious spending and inflation held at 1.1%, private label grew by 4.1% in value and 2.6% in volume, consistently outperforming industrial brands.
This means Italian consumers are not choosing retailer brands out of economic necessity; they are actively choosing them, convinced of their quality.
The end of the “cheap product” stigma
For decades, private label struggled to shake off a specific label: that of a second-rate product—a choice for those who couldn’t afford the “real” brand. The Circana 2026 data confirms that this perception is a thing of the past.
Even though private label prices have risen, consumers are paying more for retailer-branded products and continuing to buy them. Promotional pressure has dropped to 16.3%: retailers no longer need aggressive discounting to move private label goods because consumers seek them out for their intrinsic value, not just for low prices.
The clearest signal comes from functional products: items focused on health, wellness, or specific dietary or cosmetic needs have recorded 19% growth in value. Not generic products, but private-label items with distinctive features.
This is the segment for products such as micro-encapsulated scented plasters, cosmetic testers, and certified thermometers—products where technology makes the difference and the consumer recognizes the quality.
The European gap: a structural opportunity
The international comparison in the Circana report offers an essential strategic perspective. Italy’s 30.4% share seems significant until compared with the Netherlands (55%) and Spain (52%). Italy still trails the more mature European private-label markets by over twenty percentage points.
This gap is not a sign of weakness in the Italian market, but rather an
open opportunity. In markets where private label exceeds 50%, the competitive landscape has already consolidated: shelf space is taken, suppliers are selected, and loyalty programs are active. In Italy, the market is still in a phase of rapid growth, offering real room for distributors and retailers who decide to invest in this direction now—before the competition closes the windows of opportunity currently available.
From mass retail to pharmacies: private label shifts channels
Historically, private label found its natural home in large-scale food retail. However, 2026 data show significant expansion into non-food categories and channels beyond traditional mass-market food retail.
The health and beauty retail segment is among the most dynamic areas of growth for private label in Italy. Pharmacies, parapharmacies, and beauty sections within mass-market stores are discovering that offering their own branded products in these categories yields better commercial results than simply distributing third-party brands. When consumers purchase a store-brand product at a pharmacy, they are placing their trust in the pharmacy itself; private label products thus become a tool for building customer loyalty, not merely a means of boosting profit margins.
For distributors supplying these channels, the growth of private labels in the health and beauty retail sector offers a strategic positioning opportunity. Those who successfully assist their pharmacy and retail clients in developing private label lines within these categories evolve from mere commercial intermediaries into strategic partners, forging deeper relationships that are less susceptible to price-based competition.
The shift toward premium products
One of the most significant insights from Circana’s 2026 outlook concerns the direction in which private labels are moving: upward rather than downward. Italian consumers are moving away from entry-level private label lines and trading up to premium segments. This does not necessarily imply high prices, but rather products with distinctive features, specific technologies, and formulations focused on quality and functionality.
For private label developers, this trend clearly indicates which products have a future: not generic, low-priced commodities—which are easily substituted and hard to differentiate—but products backed by a credible technical track record, certified formulations, and a manufacturing origin that enhances perceived value. In this context, “Made in Italy” is not merely a nostalgic nod to manufacturing heritage but a concrete commercial asset: Italian consumers recognize and appreciate—and are willing to pay for—this provenance.
September: The Time to Plan for Q4 and 2027
Circana data reveals a clear trajectory, yet market opportunities do not wait for those who delay decisions. September is the month when distributors, mass-market retail buyers, and pharmacy chain purchasing managers finalize fourth-quarter product assortments and launch programs for the coming year.
Entering the private-label health and beauty market with technologically distinctive products, certified formulations, and “Made in Italy” manufacturing allows brands to gain a head start in a sector poised for continued growth. Those who wait until market share exceeds 40% will find themselves competing in an already crowded space, with reduced scope for exclusivity and fewer opportunities to build lasting differentiation. The time to act is while the market is still expanding, not after it has already consolidated.
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