Manufacturer brands contributed 7.5% to Spain's GDP in 2023, compared to only 3.3% by private-label brands, according to a study by Promarca, which represents Spain's major consumer brand manufacturers.
In terms of direct contribution to GDP, manufacturer brands accounted for 2.05% in 2023, exceeding private label's contribution of 0.34%, the study noted.
However, the report also highlighted a concerning trend: the added value generated per euro spent in hypermarkets and supermarkets decreased during this period.
From €0.21 per euro spent in 2019, it fell to €0.19 in 2023, largely attributed to the increased market share of private-label brands.
Impact On Jobs
In 2023, manufacturer brands in Spain were responsible for 1.38 million jobs, accounting for over 6% of the nation's total employment and 65% of the FMCG sector.
This figure significantly outpaces private-label brands, which generated 719,000 jobs, roughly half the number created by manufacturer brands.
Manufacturer brands have also demonstrated a commitment to social responsibility by increasing female employment by 13% since 2019, boosting youth employment by 38%, and creating jobs in smaller rural communities, combating depopulation with a 16% increase in employment in those areas.
Tax Impact
Manufacturer brands in Spain contributed over €13 billion annually in direct and indirect taxes, representing 5-7% of the nation's total tax revenue. This amount is more than twice the tax contribution of distributor brands.
While manufacturer brands increased their tax contributions by 16.4% from 2019 to 2023, representing a nearly €3 billion rise. This fell short of the overall growth of 20.4% of the FMCG sector.
This discrepancy resulted in a potential €725 million loss in tax revenue for the state.
R&D Impact
Manufacturer brands are the primary drivers of research and development in the FMCG sector, consistently contributing nearly 90% of the total investment.
Although their R&D spending has decreased recently to €520 million, it remains eight times greater than the investment made by private-label brands.
