Kantar Worldpanel has released data indicating that the value of the Spanish FMCG sector declined 1.2% in value and 1.6% in volume last year.
Part of the reason for this was a return to out of home dining by Spanish consumers, which particularly hit product categories associated with lunch and dinner.
“When the crisis hit there was a significant spike in demand, because the first way in which households saved money was by staying at home,” said César Valencoso, Consumer Insights Consulting Director at Kantar Worldpanel.
“Now that the macroeconomic environment and consumer confidence is more favourable, the FMCG sector is paying the price — because us Spaniards love going out — and FMCG is adjusting to this new situation”.
In addition, prices increased by 1.1% over the past year, according to a Kantar Worldpanel Consumer Price Index, which analysed the cost of more than 80,000 products. This has led consumers to seek out cheaper products.
Private label penetration rose by 0.2 points last year to reach 34.1%, the third year in a row in which own-brand share has remained relatively stable. However, it is a lot higher than the 19.7% share recorded 15 years ago in 2002.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
