Naturally Healthy Packaged Food in Spain

2020 IMPACT

COVID-19 boosts demand, as worried consumers seek out ‘natural’ products to boost their defences against the virus

COVID-19 had a significant positive effect on retail current value sales of naturally healthy (NH) packaged food, with the rate of growth more than doubling during 2020 and reaching its highest level in more than a decade. Demand for NH packaged food was lifted by the rising tide of consumer interest in health and wellness, as they sought to boost their immune systems and lose weight in an effort to protect themselves from the worst symptoms of virus.

Consistent strong growth tempts international players into launching more NH fruit and nut bars

During the review period as a whole, NH fruit and nut bars were the top performer in NH food, and this strong performance continued into 2020, despite the fact that the pandemic led to a reduction in on-the-go consumption. New product development in NH fruit and nut bars continues to be vigorous, with international players a growing presence: Mars Inc launched Be-Kind bars with nuts, dark chocolate and sea salt; Grupo Nestlé España SA launched Yes, which is made with nuts, fruits and seeds; General Mills Iberica SA introduced Nature Valley Crunchy; and Kellogg España launched SA Nuts & Raw fruits.

Breakfast cereal manufacturers reformate their products and launch new NH brands

Breakfast cereal producers like Grupo Nestlé España SA have been reformulating products and launching new brands in order to respond to growing demand for healthier products. For example, it has launched NAT in children's cereals.

RECOVERY AND OPPORTUNITIES

Heightened consumer interest in health and naturalness will persist beyond the pandemic

Growth in retail current value sales of NH packaged food is set to slow during 2021 as the threat posed by COVID-19 begins to fade and daily life returns to something approaching normality. Nonetheless, strong consumer interest in health and wellness, as well as naturalness, is likely to persist throughout the forecast period, and as a result, the rate of retail current value sales growth for NH packaged food will be significantly higher than in the review period, with NH fruit and nut bars set to remain the top performer.

Sustainability will grow in importance, particularly for olive oil

With consumers, particularly younger ones, becoming more environmentally aware, sustainability is set to grow in importance in NH packaged food, particularly with regard to olive oil. More olives may be cultivated in traditional olive groves, which have fewer trees per hectare and often require less irrigation than intensive olive groves.

Consumers to get sweeter on sour milk

Demand for NH sour milk products remains quite limited in Spain, but the rate of growth in retail current value sales is set to accelerate during the forecast period. In particular, kefir is perceived by consumers as being naturally healthy and providing significant digestive health benefits.