FMCG sector in Spain continues to grow

Shop visits have fallen by 3.3% but shoppers are continuing to fill their baskets more and more with each trip.
25 September 2020
FMCG Spain

Retail & Petrol Director, Iberia

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So far this year, the fast-moving consumer goods (FMCG) sector in Spain has grown 14.2% since last year and has seen a 12% increase in demand. These findings, from a retail study published today by Kantar, show that the market is continuing to thrive despite the arrival of the new normal.

In terms of sub-sectors, fresh and packaged food are the market’s main drivers, while household and personal care products have seen the biggest growth by volume, having risen by 15.6% compared to the same period last year.

Chart1 Spain

Another conclusion drawn by the Kantar study is that, following lockdown, Spaniards have not returned to their old shopping habits. Shop visits have fallen by 3.3% but shoppers are continuing to fill their baskets more and more with each trip.

Multi-channel shopping is here to stay in 2020, with consumers opting for local retailers and internet shopping, the two clear winners this year, having respectively recorded a 1.2% and 0.7% increase in market share, compared to 2019. In fact, ecommerce has enjoyed a record high, the growth experienced in the last 12 months is the same as that predicted over a three-year period.

Shifts in the retail landscape

Although Mercadona continues to be the biggest player in the new normal, for the first time in its history it has lost ground to other retailers, like Lidl, which has seen the biggest increase in market share. And Mercadona is not alone, as Spain’s other top three retailers have also seen their market share diminish. This includes Carrefour, which has consolidated its position as Spain’s second-biggest player with the recent acquisition of Supersol, and DIA, which, following growth recorded during lockdown, has now fallen back to a market share comparable with the beginning of the year.

Regional supermarkets have enjoyed exceptional growth in 2020, expanding beyond their classic offering of fresh food. Almost all local supermarkets have recorded their best numbers ever this year, standing out in the minds of a consumer who is increasing opting for a variety of alternatives across all sectors.

Chart2 Spain

These figures show that new retail scenarios are emerging in which local retailers and the online channel are set to play a more significant role. Innovation, advertising, promotions and the creation of new shopping patterns will be key to helping retailers through a time of crisis like the one we are currently experiencing.

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