Despite a relatively high value market share of 41.5%, private label in Spain suffers from a slight image problem with many Spanish consumers still chosing to buy a branded product even if it means spending a few euros more.
Eales said: "41% of Spanish shoppers have declared that they prefer buying a branded product although it means they pay more: this is five points more than in 2013. When we talk about loyalty, we can see is more related to emotional feelings: shopper choose brands that give them security, proximity and that are familiar.
"[But] I think that this is likely to be true all over Europe. Branded buyers know why they are paying more and wouldn’t do so if they did not believe that they were either getting a better product or had more confidence in the branded good to satisfy their physical and emotional need better."
Meanwhile convenience categories, such as prepared meals, spreadable tomato paste or hummus have seen strong growth with baby milk powder growing by an impressive 700% in value.
Growth strategies could include continuing to invest in these convenience and proximity formats, says IRI.
Mercadona, Bon Preu, Lidle and Consum are the retailers to watch, according to IRI, as they all registered increased sales.