Private label is no longer just a low-cost alternative. It has become one of the most aggressive commercial tools used by major retailers in Romania.

According to YouGov analyses from 2026, both local and international retailers have accelerated the expansion of their private label portfolios amid inflationary pressure and consumers’ shift toward more affordable products.

In certain categories such as dairy, canned goods, frozen products, and bakery items, private labels now account for more than 20–30% of volumes sold in modern retail.

For consumers, this trend means lower prices.

For producers, however, the situation is far more complex.

Many Romanian processors are now producing under retailers’ brands, but margins are significantly lower compared to their own branded products.

At the same time, shelf space for independent brands is shrinking.

Retail consolidation is amplifying the issue. The largest retail chains control the majority of the modern market, and suppliers’ bargaining power continues to decline.

Small and medium-sized producers are the most vulnerable, as they cannot simultaneously sustain investments in marketing, promotions, and listing fees.

As a result, the Romanian food industry is entering a new paradox: factories are producing more, but their own brands are becoming increasingly less visible.

In the long term, specialists warn that the market could become dominated by retailers rather than producers.

(Photo: Magnific)