Private label products have reached high levels of penetration among Greek households as rising living costs continue to influence supermarket purchasing decisions. Despite the shift towards cheaper options, Greek consumers continue to show a strong preference for quality products made domestically, keeping demand for “Made in Greece” products particularly strong.
A study conducted by the Athens University of Economics and Business in January 2026, using a scientific random sample of households, found that private label products reached another record high in consumer preferences for the third consecutive year.
Almost four in 10 products purchased by consumers are now private label products, while their overall acceptance among shoppers also remains high.
The growing preference for Greek products has also contributed to this trend. Professor Georgios Baltas told the Athens-Macedonian News Agency (AMNA) that most private label products are manufactured in Greece by domestic producers and manufacturers on behalf of supermarket chains.
As a result, the growing “Made in Greece” trend complements the expansion of private label products.
Why Made in Greece matters to consumers
According to Baltas, “Made in Greece” represents more than a production issue. It also reflects consumer behaviour.
Marketing research shows that a product’s country of origin can influence consumers’ perception of quality and their intention to buy it. A series of studies has also found strong consumer trust in Greek products and a willingness to support domestic production through purchasing decisions.
“The established long-term preference of consumers for Greek products can secure stable demand for domestic producers, support domestic employment and allow companies to modernise in order to contain costs and ultimately retail prices,” Baltas told AMNA.
Strengthening Greek production could help contain prices
Baltas identifies rising prices as the dominant economic concern for Greek households and argues that recent data show that inflationary pressures remain strong.
Annual inflation reached 3.8% in August, up from 3.4% in July, according to the Hellenic Statistical Authority (ELSTAT). Housing recorded the largest increase at 9.7%, followed by transport at 7.7% and hotels, cafés and restaurants at 6.0%.
The average inflation rate over the 12-month period from September 2025 to August 2026 also increased. The average index rose by 3.4%, compared with 2.6% in the previous corresponding period.
Public debate generally focuses on measures targeting demand or administrative interventions such as subsidies, profit-margin caps and voluntary agreements, Baltas said.
Such measures can ease the burden on consumers in the short term, he argued, but they largely leave the supply side of the economy untouched.
Strengthening Greek production in both manufacturing and agriculture could therefore play an important role in containing prices.
Manufacturing accounts for around 10% of Greece’s gross value added, well below the European average. Meanwhile, Greece has maintained a long-standing deficit in its trade in goods.
The country also relies on imports for a significant share of meat, dairy products, animal feed and cereals, as well as many industrial and consumer goods.
“In other words, a large part of the consumer basket follows international prices, transport costs and geopolitical disruptions,” Baltas said. “In this context, imported inflation is difficult to address through domestic demand measures because its source lies outside the country.”
Three ways stronger domestic production could contain prices
According to Baltas, stronger domestic production can influence prices through three main mechanisms.
First, it can expand supply and competition. When more domestic producers operate in a market, available supply increases and the ability of a small number of importers or distributors to influence prices decreases.
In highly concentrated markets, domestic production can provide an alternative source of supply and act as a natural constraint on pricing power and excessive price increases.
Second, it can shorten supply chains. Transport, storage, refrigeration and intermediaries each add costs that eventually reach consumers. Producing goods in Greece can significantly reduce these costs.
Domestic production can also reduce environmental impacts because locally produced goods generally travel shorter distances through the supply chain.
Third, it can strengthen resilience against external shocks. The COVID-19 pandemic and the 2022 energy crisis showed how quickly international supply chains can become disrupted.
Economies with stronger domestic production bases absorbed such shocks with fewer problems and lower costs. In simple terms, domestic production can act as a form of insurance against volatility in international prices.
At the same time, the incomes and jobs generated by domestic production remain within the economy and support household purchasing power.
Agriculture at the centre of the strategy
Greece has recognised comparative advantages in olive oil, fruit and vegetables, dairy products and aquaculture. However, Baltas noted that the country remains dependent on imports in categories that account for a significant share of household spending, particularly meat and cow’s milk.
Livestock farming has faced significant pressures in recent years, reducing domestic supply at a time of increased demand.
“Strengthening agricultural production requires measures that go beyond subsidies,” Baltas said. “The fragmentation of landholdings and the small size of farms increase the cost per unit of production.”
Producer organisations and modern cooperative structures can create economies of scale, improve farmers’ negotiating position and narrow the gap between farm-gate and retail prices, he added.
Irrigation projects, domestic animal-feed production and digital agriculture also have an important role to play.
Food industry adds value to Greek production
Manufacturing can further amplify the value of agricultural production.
The food and beverage industry, Greece’s largest manufacturing sector, turns domestic raw materials into finished products while keeping more of the resulting added value within the Greek economy.
Other industries, including construction materials, pharmaceuticals, metallurgy and packaging, also play an important role. These sectors supply other parts of the economy and support networks of interconnected businesses and suppliers.
The combination of stronger domestic production, shorter supply chains and growing consumer demand for Greek-made products could therefore provide Greece with another tool for addressing price pressures while strengthening its productive base.
