Convenience Foods - Spain

ISSUES IN THE MARKET

Definition

Consumer research

Abbreviations

MARKET IN BRIEF

Ready meals part of mainstream offer

Greater health orientation

Quality counts

Is economic slowdown favouring ambient and frozen products?

Future prospects

INTERNAL MARKET ENVIRONMENT

Key points

Appreciation of food

Changing eating habits

Tackling obesity

Birth of natural convenience foods

Lack of space makes Spaniards opt for combined fridge-freezers

Figure 1: Ownership of microwave ovens, freezers and combined fridge-freezers, by country, 2008

Appliance ownership grows, but sales are declining

Figure 2: Trends in ownership of microwave ovens, freezers and combined fridge-freezers in Spain, 2004-

08

Microwaves and freezers most common in large households with children

Figure 3: Ownership of microwave ovens, freezers and combined fridge-freezers in Spain, by demographic

sub-group, 2008

Eating out is a popular pastime

Figure 4: Trends in frequency of eating fast food and eating out, 2004-08

BROADER MARKET ENVIRONMENT

Key points

Falling number of 15-24-year-olds is negative news

Figure 5: Trends in the age structure of the Spanish population, by gender, 2003-13

Will convenience foods be hit by recession?

Figure 6: Trends in Spanish PDI, consumer expenditure and GDP, at current prices, 2003-13

Growing unemployment has an adverse effect

Figure 7: Trends in Spanish employment, by gender, 2001-05

Smaller households shape product offer

Figure 8: Trends in number of Spanish households, by size, 2000-04

WHO’S INNOVATING?

Key points

A modest pace of new launches in Spain

Figure 9: Percentage of new product launches in selected convenience foods, by country, 2006-08

Easy does it

Figure 10: New product launches in selected convenience foods in Spain, by positioning, 2006-08

Retailers tap into potential

Figure 11: Percentage of new product launches in selected convenience foods in Spain, by manufacturer,

2006-08

Regional cuisine

Natural ready meals

Meal kits

Pizza suppliers trust traditional

Basic tomato-based sauces joined by premium products

Gazpacho remains top soup

MARKET SIZE, SEGMENTATION AND FORECAST

Key points

Growth continues in 2008

Ready meals outperform

Figure 12: Spanish retail value sales of ready meals, at current and constant prices, 2004-14

Revival of ambient and frozen meals

Figure 13: Spanish retail value sales of ready meals, by type, 2006-08

Steady growth for pizza

Figure 14: Spanish retail value sales of pizza, at current and constant prices, 2004-14

Figure 15: Spanish retail value sales of pizza, by type, 2006-08

Wet products support sales of cooking sauces

Figure 16: Spanish retail value sales of cooking sauces, at current and constant prices, 2004-14

Figure 17: Spanish retail value sales of cooking sauces, by type, 2006-08

Soup benefits from health positioning

Figure 18: Spanish retail value sales of soup, at current and constant prices, 2004-14

Figure 19: Spanish retail value sales of soup, by type, 2006-08

Prospects

Factors used in the forecast

MARKET SHARE

Key points

Familiar brand names fight own-label pressure in ready meals

Figure 20: Manufacturers’ retail value shares of ready meals, 2006-08

Casa Tarradellas still Spain’s number-one pizza

Figure 21: Manufacturers’ retail value shares of pizza, 2006-08

Own-labels particularly strong in cooking sauces

Figure 22: Manufacturers’ retail value shares of cooking sauces, 2006-08

Gallina Blanca leads in soup

Figure 23: Manufacturers’ retail value shares of soup, 2006-08

COMPANIES AND PRODUCTS

Campofrío

Casa Tarradellas

Gallina Blanca

Heinz

Nestlé

Unilever

Advertising and promotion

The internet offers new marketing opportunities

Advertising to suffer from recession

THE CONSUMER - PAN-EUROPEAN OVERVIEW

Key points

Most convenience foods have low penetration in Spain

Figure 24: Use of selected convenience foods, by country, 2008

Figure 25: Frequency of using selected convenience foods, by country, 2008

THE CONSUMER - PRODUCT USE IN SPAIN

Key points

Under-35s, families with children and larger households form core consumer group

Figure 26: Penetration of using selected convenience foods, by demographic sub-group, 2008

Instant snack meals and soup gain the most new consumers

Figure 27: Trends in penetration and use of selected convenience foods in Spain, 2004-08

Ready meals have youth appeal

Pizza is a family affair

Busy workers resort to cooking sauces

Soup more popular amongst men than women

Detailed demographics

Figure 28: Penetration and frequency of using ready meals, by demographic sub-group, 2008

Figure 29: Penetration and frequency of using pizzas, by demographic sub-group, 2008

Figure 30: Penetration and frequency of using cooking sauces, by demographic sub-group, 2008

Figure 31: Penetration and frequency of using soup, by demographic sub-group, 2008

THE CONSUMER - ATTITUDES

Key points

Family meals still popular at weekends

Figure 32: Attitudes towards cooking and meal occasions, by country, 2008

Quality-conscious Spaniards

Figure 33: Attitudes towards food quality, by country, 2008

APPENDIX: RESEARCH METHODOLOGY