Euromonitor International’s Spain Households Country Briefing focuses on an advanced market, whose households have strong access to prime household utilities and basic facilities. The country offers a unique market for the growth of cost-effective technologies, particularly in terms of the smart home, as crisis-hit consumers look to lower their spend on utilities. Smart thermostats, energy-efficient lighting and affordable security systems all have strong prospects in Spain, if the products can focus on affordability and long-term savings.
Source: Euromonitor International
Households are well connected, but discretionary spending power has declined in recent years:
- Households with one or two persons will continue to be common. Local homes will continue to be spacious with typically five rooms or more, creating a favourable environment for marketers of various household goods;
- The majority of household heads in Spain are male, while the share of household heads aged over 60 is on the rise, as a result of the country’s ageing population;
- The unemployment rate among household heads has started to decline, but it remains among the highest in the region, as the impacts of the eurozone debt crisis and austerity measures still weigh on Spain’s economy. This has affected households’ income and, thus, their discretionary spending power. The share of household heads with higher education is rising, but it is still lower than the regional average;
- Single-person homes accounted for the second-largest group as of 2016 and this family type is expected to expand the fastest in Spain through to 2030, due to both demographic and lifestyles changes. This will create growing opportunities for businesses targeting singletons;
- Spanish households are well connected, with possession of laptops, smartphones and tablets higher than global averages. Rising penetration of mobile internet and portable devices will continue to support sectors such as m-commerce, online banking, and online music and video. Economic recession and falling disposable income, however, have affected households’ demand for pay-TV. As households try to reduce large subscriptions fees, the penetration rates of cable TVs and satellite TVs declined during the 2011-2016 period.
Chart 1 Household Penetration by Facilities and Durables in 2016 in Spain
Demand for energy-efficient appliances on the rise As households try to reduce their energy bills, demand for energy-efficient appliances continues to rise in Spain. Some manufacturers, therefore, have placed emphasis on the energy-efficiency levels of their appliances to gain a competitive advantage. For instance, LG Electronics Espa ñ a launched a savings offer, "Enchufate al Ahorro", which entailed a reimbursement of € 20.0-100 on the purchase of any LG refrigeration appliance with at least an A+ label.
For detailed analysis on Households Spain, click here.
For further information, please contact Roshni Wani Thapa, Economies and Consumers Analyst; roshni.thapa@euromonitor.com and connect with her on LinkedIn.