Executive Summary

Aug 2018
Prospects
Economic growth and premiumisation drive sales of cheese

Cheese experienced growth in both retail current value and volume terms in 2018, driven by economic recovery and increasing consumer confidence. There is a clear but gradual trend towards premium references within the category, which is reflected in increasing sales of specialities and imported cheese; products with higher added-value, sales of which were negatively affected during the economic crisis.

The volatility of raw materials prices brings distribution challenges

The high volatility of the price of raw materials, as a consequence of the end of dairy quotas in Europe, is one of the main factors affecting cheese in Spain. The industry argues that this volatility has made it difficult to set stable prices and affected operations in the medium and long term, hindering distribution as well as export activity.

Rising awareness of lactose intolerance drives sales of lactose-free cheese

Growing awareness of lactose intolerance amongst Spanish consumers contributed to the development of lactose-free cheese in the last couple of years. The interest of large manufacturers in this segment, including Grupo Lactalis Iberia, Mercadona, Lácteas García-Baquero and Mantequerías Arias, which have introduced new lactose-free products, has been key to the success of this segment.

Competitive Landscape
Grupo Lactalis Iberia maintains its lead in cheese

Grupo Lactalis Iberia maintained its lead in cheese in Spain in value terms in 2018. Its wide product portfolio, broad distribution scope and the popularity of its brands in Spain, which include El Ventero, Gran Capitán, Société and Président, explain the leading position of the company within cheese.

Private label loses share

Private label continued to lose share within cheese in 2018, which can be explained by the growing sophistication of consumer demand and the rising preference for products with higher added-value, most of which come from branded players. Despite losing share, private label still accounted for a significant share of total sales within cheese in 2018, due to the strong position of the retail channel, in which private label is present.

Innovation brings dynamism to cheese

The recovery of consumer confidence led to the re-emergence of trends that were largely abandoned during the hardest years of the economic crisis. These included the development of snacking formats, with new releases such as the renewed Navidul spreadable cheese format or the new Arla snacking format in hard cheese.

Prospects
Growing scepticism of dairy products hampers consumption

Growing scepticism about the health effects of dairy products in the eyes of the public was the main factor explaining the declining consumption of drinking milk products in Spain in 2018. This negative opinion of dairy products was the result of stories published online and in the media that claim that older consumers do not need to consume milk, and that most consumers have some degree of lactose intolerance, which had a damaging effect on milk consumption.

Other milk alternatives records the highest growth

Other milk alternatives continued its boom in Spain in 2018, favoured by rising health-consciousness amongst consumers and growing concern regarding lactose intolerance, which resulted in a shift from cow’s milk towards other milk alternatives. The growing demand for plant-based products suitable for vegans was also key in the performance of the category.

Fresh milk grows as consumers go all-natural

Fresh milk managed to emerge from its negative trend from 2017, recording a positive performance in 2018. The growing demand for more natural products was key to the success of the category.

Competitive Landscape
Mercadona leads drinking milk products

Leading Spanish retailer Mercadona led drinking milk products in Spain in value terms in 2018. Its lead can mainly be explained by its strength within shelf stable milk.

Corporación Alimentaria Peñasanta (CAPSA) launches organic dairy products Asana

In early 2018, Corporación Alimentaria Peñasanta (CAPSA) launched Asana, a new brand of organic dairy products produced with organic milk from cows that graze freely in the Austrian Alps. Within drinking milk products, the new releases included references of full fat, semi-skimmed and skimmed milk, as well as lactose-free semi-skimmed milk.

Innovation drives the development of flavoured milk drinks

The efforts of branded manufacturers in new product development favoured the development of flavoured milk drinks. Key innovations within this category during 2017-2018 included the lactose-free version of Cola Cao Shake, which comes in a 200ml plastic cup, and Cacaolat veggie, a non-dairy chocolate-based flavoured milk reference produced using oat milk, available in 1-litre PET bottles.

Prospects
Yoghurt and sour milk products declines as consumers turn their backs on dairy products

Sales of yoghurt and sour milk products continued to decline in 2018, following a similar path to the review period. The negative perception of dairy products, which can be explained by the growing scepticism regarding the health benefits of these references and rising awareness of lactose intolerance, was behind the decline of the category.

Sour milk products grows, driven by the entry of leading Spanish retailer Mercadona

Sour milk products recorded the highest growth in yoghurt and sour milk products in retail current value terms in 2018. Albeit coming from a low base, the category benefited from the good performance of kefir (fermented milk), which contributes to regenerating the intestinal flora, facilitates digestion and helps to solve constipation.

Yoghurt manufacturers commit to indulgence

In the last couple of years, manufacturers threw themselves into attracting new consumers via indulgence and pleasure, positioning their products as a healthier alternative to dairy desserts. Leading manufacturer Danone led the way a few years ago with its release of Oikos, and the incorporation of new flavours, including fruit fondues – fruit fondue with orange, fruit fondue with cherry and fruit fondue with red berries.

Competitive Landscape
Danone leads yoghurt and sour milk products

Danone led yoghurt and sour milk products in Spain in value terms for another consecutive year in 2018. The dominance of the company can be explained by the popularity of its brands amongst Spanish consumers; these include Actimel, Activia, Danacol, Danet, Danissimo, Dan’up, Danonino, Griego and Savia.

Pastoret de la Segarra capitalises on the growing demand for artisanal products

El Pastoret de la Segarra, a regional manufacturer from Catalonia, saw very healthy growth in Spain in the last couple of years, benefiting from its strategy of added-value and differentiation, and its commitment to natural products. El Pastoret de la Segarra offers ranges of both standard and organic yoghurt, and kefir in two formats: 125g and 500g, with the latter format contributing to identifying it on the shelves of retailers.

Danone launches a line of dairy-free yoghurt under the Alpro brand

In early 2018, Danone, the leader in yoghurt and sour milk products in Spain, launched its new non-dairy spoonable yoghurt line under the brand Alpro. The French multinational launched a 500g format designed to be consumed for breakfast, combined with fruit, seeds and cereals, in three varieties: natural, with oat, or with coconut.

Prospects
The negative opinion of dairy products hampers the performance of other dairy

Similar to what is happening in other dairy categories, rising concern about lactose intolerance and the overall negative public opinion affecting dairy products were the main factors leading to the decline of other dairy in 2018. These trends affected all major categories within other dairy, including chilled dairy desserts, condensed milk and cream.

The recovery of foodservice favours sales of dairy desserts

In 2018, the foodservice channel continued to recover, favoured by the return of Spaniards to bars and restaurants in a context of economic growth and rising disposable incomes. The performance of the channel also benefited from the rise in the number of foreign tourists visiting Spain in 2018.

Growing premiumisation of the offer drives up unit prices

The growing premiumisation in other dairy, favoured by the increasing demand for higher added-value references in a context of rising disposable incomes, resulted in a rise in the average unit price of other dairy products. This was especially evident in categories such as chilled dairy desserts and cream, in which brands focused on product differentiation and added-value when it came to new developments.

Competitive Landscape
Danone leads other dairy

Danone led other dairy in Spain in value terms in 2018. The leading position of the French multinational can be attributed to its hegemony within chilled dairy desserts and fromage frais and quark, with well-known brands such as Danone para postres, Danet, Mousse and Vitalinea, which are deeply rooted amongst Spanish consumers.

Private label holds up

Despite the rising demand for higher added-value references in the current scenario of economic growth, which favoured the performance of brand manufacturers, private label managed to record a steady performance in 2018. The rooted presence of private label in the category can be explained by the strength of retailers such as Mercadona in major categories such as chilled dairy desserts, which benefited from the agreement with intersupplier Romar for the elaboration of its line of chilled dairy desserts; it invested strongly in the development of new products since its entry in Mercadona at the end of 2015.

Danone invests in boosting production of its line Danet

As part of its commitment to boosting its competitiveness within other dairy, category leader Danone is currently investing EUR10 million in a new production line for its brand of chilled dairy desserts Danet, in a plant located in Tres Cantos, Madrid, which currently has 10 production lines. The new production line, which will be in operation by June 2018, will increase production capacity in the plant by over 14,000 tonnes a year.

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Overview

Discover the latest market trends and uncover sources of future market growth for the Dairy industry in Spain with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Dairy industry in Spain, our research will save you time and money while empowering you to make informed, profitable decisions.

The Dairy in Spain market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Dairy in Spain?
  • What are the major brands in Spain?
  • How has the economic downturn impacted sales performance given its staple food status?
  • Given mounting obesity concerns, are consumers moving from full-fat to reduced fat/fat-free offerings?
  • How are volatile farmgate prices for milk impacting retail prices and sales performance?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Packaged Food market research database.

Butter and Spreads

Cheese

Drinking Milk Products

Other Dairy

Yoghurt and Sour Milk Products

Packaged Food in Spain - Industry Overview

EXECUTIVE SUMMARY

Moderate growth continues, although at a slower pace
War on food waste suppresses retail volume sales across packaged food
Private label remains a strong player despite facing headwinds in some categories
Modern grocery retailers to become even more dominant in packaged food retailing
Strong economy likely to underpin positive performance of packaged food

FOODSERVICE

Sales to Foodservice
The revival of Spain’s consumer foodservice industry attracts the attention of packaged food players
Inbound tourism remains buoyant, supporting strong growth in the consumer foodservice industry
The arrival of Amazon facilitates the supply of packaged food to consumer foodservice companies
Consumer Foodservice
Spain’s consumer foodservice industry back on track
Strong demand for consumer foodservice among the elderly boosts industry growth rates
Diminishing size of the average household contributing to increasing demand for consumer foodservice
Category Data
Table 1 Foodservice Sales of Packaged Food by Category: Volume 2013-2018
Table 2 Foodservice Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 3 Forecast Foodservice Sales of Packaged Food by Category: Volume 2018-2023
Table 4 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2018-2023

MARKET DATA

Table 5 Sales of Packaged Food by Category: Volume 2013-2018
Table 6 Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 7 Sales of Packaged Food by Category: % Value Growth 2013-2018
Table 8 GBO Company Shares of Packaged Food: % Value 2014-2018
Table 9 NBO Company Shares of Packaged Food: % Value 2014-2018
Table 10 LBN Brand Shares of Packaged Food: % Value 2015-2018
Table 11 Penetration of Private Label by Category: % Value 2013-2018
Table 12 Distribution of Packaged Food by Format: % Value 2013-2018
Table 13 Distribution of Packaged Food by Format and Category: % Value 2018
Table 14 Forecast Sales of Packaged Food by Category: Volume 2018-2023
Table 15 Forecast Sales of Packaged Food by Category: Value 2018-2023
Table 16 Forecast Sales of Packaged Food by Category: % Volume Growth 2018-2023
Table 17 Forecast Sales of Packaged Food by Category: % Value Growth 2018-2023

SOURCES

Summary 1 Research Sources