Margin pressure is driving food retailers toward retail media, health, and AI

Written by Stefan Van Rompaey

In this article

Topics FMCG In depth
Geography Europe

Food22 April, 2026

European retailers are facing sustained pressure on margins due to rising costs and cautious shoppers. Opportunities lie in private labels, healthcare, retail media, mergers and acquisitions, and artificial intelligence, according to a new report.

Relatively stable market

In 2025, European food retail sales grew by 3.4%, a growth driven primarily by a 2.9% increase in consumer prices, while volume grew by 0.6%. This marked the second consecutive year of sales growth in real terms (adjusted for inflation). Private labels continued to gain ground, reaching a 40% market share, while the growth of online shopping slowed. The sector expects a relatively stable consumer market in 2026, though the impact of the conflict in the Middle East remains unclear.

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