Fortified/Functional Packaged Food in Spain

PROSPECTS

FF packaged food hit by consumer shift to more natural products

Although Spain was a pioneer in fortified/functional products (the first enriched omega-3 milk was launched in the country), category development has not been as strong as in other Western European countries like the UK and Germany. Many health-conscious consumers are moving towards natural products.

Regulation restricts room for manoeuvre

The tightening of EFSA (European Food Safety Agency) regulations around health claims makes it harder for companies to innovate in the category. Many companies consider the regulations to be prohibitive and they believe that more products should fall into the FF spectrum, as many “traditional“ categories within it are performing poorly.

Digestive health points the way ahead

Digestive health is expected to drive the performance of fortified/functional packaged food in Spain. As consumers are more aware of digestive issues, manufacturers are likely to increase their attention on this type of prime positioning.

COMPETITIVE LANDSCAPE

Danone remains the leading company

Danone is the long-time leading player in fortified/functional packaged food in Spain. The company dominates FF yoghurt with its popular Activia, Actimel, Densia, Danacol and Vitalinea brands.

Economic recovery undermines the demand for private label

Private label has retained a key position in fortified/functional packaged food through major retailers like Mercadona, Lidl and Centros Comerciales Carrefour. Indeed, taken together, private label holds the highest retail value share in the category, while Mercadona is second only to Danone.

Manufacturers invest in healthier propositions

FF packaged food manufacturers are seeking ways to revitalise a declining category. The key strategies include a focus on natural ingredients and even superfoods.

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