Organic Packaged Food in Spain

2020 IMPACT

COVID-19 leads to sharp acceleration in retail current value sales growth, as consumers seek to reinforce their natural defences against the pandemic

COVID-19 led to a surge in demand for organic packaged food during 2020, with the growth rate of retail current value sales almost doubling, to reach its highest level in 13 years. Organic products sit well with the health and wellness and naturalness trends, both of which were given a significant boost by the pandemic, as consumers sought out possible ways to bolster their general health in an effort to strengthen their immune systems.

Carrefour broadens distribution of organic offerings

Even before the onset of COVID-19, demand growth for organic packaged food had been strong, with retail current value sales rising by more than 40% during the forecast period, with baby food, dairy, edible oils, honey and shelf stable meat, seafood, fruit and vegetables accounting for the bulk of retail current value sales. Apart from health and wellness and naturalness, these products also appeal to consumers on the grounds of sustainability.

Local manufacturer uses organic positioning in an effort to bolster the appeal of processed meat

Processed meat, particularly processed red meat, is increasingly perceived as unhealthy by Spanish consumers due to extensive media reporting of studies that have found some of the ingredients of these products to be carcinogenic. Local manufacturer Cárnicos Serrano is trying to ameliorate this negative perception through the use of organic ingredients, launching Bio Chorizo in late 2019.

RECOVERY AND OPPORTUNITIES

An ageing population and a broader product offer will help to drive vigorous growth in retail current value sales

Growth in retail current value sales of organic packaged food is forecast to decelerate sharply but remain robust during 2021, as the epidemiological threat posed by COVID-19 begins to diminish. Growth will remain strong during the remainder of the forecast period, as demand for these products remains far from maturity, with per capita retail current value sales still quite low.

Organic baby food will lead growth, as Spanish parents are increasingly prepared to pay for the ‘best’

Organic baby food will be the top performer in terms of retail current value sales growth, and by the end of the forecast period, it will also lead in terms of absolute retail current value sales of organic packaged food. Although Spain has one of the lowest fertility rates in Western Europe, Spanish parents are increasingly prepared to pay for what they perceive to be the best for their children when it comes to nutrition.

Organic meal kits will seek to capitalise on increased consumer interest in home cooking

With people cooking more at home, new concepts like meal kits are emerging to help with this task, and these could grow in popularity during the forecast period. For example, Foodinthebox has launched a new Personalized Plans service.