Cecilia Ruiz – Madrid Office Manager, Bord Bia – Irish Food Board

2014 is coming to an end with a drop in Spanish grocery consumer spend of 2.5% at €1,894 per capita. There are a number of reasons behind this; the Spanish population is decreasing, unemployment remains at 25%, competition on food has led to deflation, there is an excess of sales areas and the fast food €1 price offers are competing with home meals. Consumers are increasingly rational in their shopping behaviour, buying less by buying smaller packs more often, and constantly comparing prices and looking for promotions.

2014's main retail trends include:

• Focus on low-price & promotions to attract consumers
• Strong PL share at 41%, but stagnant
• Focus on Fresh range / Mediterranean diet enhancement: olive oil, fruit & veg, fish, dairy
• Focus on Local produce /DO-GPIs
• Big Supermarkets growth driven by convenience and proximity
• Supermarket openings everyday via franchises
• Hard Discounters and internet sales growth (retailers investing in new digital systems & online platforms)
• Two poles: basic shopping basket made of “essentials”, but premium-gourmet ranges emerging at discounters (Lidl Deluxe – DIA Delicious)
• Regional-local retail chains outperforming national retailers
• New players: Supeco (Carrefour C&C), Costco, Poundland (Dealz) and HEMA first openings

Forecasts for 2015 are positive, led by an economic and consumer confidence improvement. Irish products will not be able to compete with PL basic foods, but will have opportunities in the new Premium-Gourmet ranges and in tourist areas. Convenience ready meals have growth potential but need to be supported and highlighted with in store tastings and promotions. There is a growing concern about sustainability as well as fair trade and organic produce, and local production.

For more information please contact cecilia.ruiz@bordbia.ie.