Organic Packaged Food in Spain 2012
EXECUTIVE SUMMARY
Food holds cultural significance in Spain, and enjoying meals for social occasions is an important part of everyday life. As a result, consumers hold the purchase of fresh fruits, vegetables, meat and fish in high regard.
Spain is generally known to follow a Mediterranean-style diet. While traditional eating habits are changing due in part to Western influences, the Spanish diet is still perceived to be one of the healthiest in the world.
Due to the cultural importance of meals, Spanish consumers are normally willing to spend on higher-priced foods. Despite this, the country’s economic climate has made the organic market an evolving yet challenging situation. The economic downturn in 2009 and 2010 limited growth in the Spanish organic food market for reasons related to price and reduced consumption, and it is expected that growth will continue to be negatively affected by Europe’s financial crisis.
However, the Spanish economy experienced strong growth in comparison to other European countries in 2010. Furthermore, Spain is the fourth largest market in the Eurozone and the twelfth largest market in the world, with a population of 47 million in 2011. Spain’s overall gross domestic product (GDP) was US$1.4 trillion in 2010, while GDP per capita was US$30,589. Despite negative growth in 2011, these indicators maintain Spain’s position as a leading world economy.
Presently, the global export forecast for Spain is weak. Due to the current economic climate in Western Europe, especially in two of the Eurozone’s largest members - Italy and Spain - there appears to be a number of risks associated with exporting to these markets. Moreover, the organic food and beverage market in Spain is relatively small. This is evidenced by the minimal participation of foreign competitors.
Despite these challenges, the value associated with living a healthy lifestyle is increasing in Spain. The growth of health and wellness products is supported by government campaigns and an overall propensity to maintain appearances, which may extend opportunities to the organic market.
