The Consumer Goods sector grew by 0.7% in terms of value in 2018, according to the report "Balance of Retail and Consumer Goods 2018", presented by the leading consumer panel consultant Kantar Worldpanel. In terms of volume, the market has fallen by 1.1%, weighed down by a slowdown in population growth and by rising consumption outside the home.
According to Florencio García, Iberia Retail Sector Director at Kantar Worldpanel, "Spanish households still pay attention to prices, but are willing to pay more for those products that offer them something unique". This trend is especially noticeable in packaged food. Despite the fact that consumption is 0.6% lower, Spaniards have spent 1.9% more than a year ago. That is, the price they have paid for their packaged products has risen by 2.5%. This increase is largely due to changes in the product mix and a search for greater added value in each purchase, whether with more premium varieties or with healthier options. In fact, the eco / bio packaged food has experienced a growth of 19% compared to 2017.
The section that has most slowed down the growth of Consumer Goods is that of Fresh Products: Spaniards have bought about 2% less, in spite of keeping expenditure almost at the same level (-0.2%). Modern retailers have brought fresh products into the core of their strategies, with a 2.4% increase in expenditure, to the detriment of the specialist channel, which accounts for 35% of sales and has recorded a 5% fall in 2018.
In general, when it comes to food, the main goal for most Spanish consumers is still to enjoy it, but there's also a search for convenience and health, without devoting much time to the process. For this reason, snacking in between meals is becoming increasingly common.
E-commerce continues its slow progress in the Spanish consumer market. It currently accounts for 1.6% of all sales, up 0.1 points compared to 2017. It is still far from the figures of France (5.6%) or the United Kingdom (7.2%). The obstacle to further growth is the high number of stores in Spain, added to the difficulty of selling fresh products via electronic commerce in a country so linked to these products.
Source: Kantar Worldpanel