NIQ Retail Spend Barometer
Spain
Spanish households increased their spending on consumer goods by 4.6% in the first quarter of 2024.
- Consumer spending on FMCG, technology and durable goods in Spain reached 35 billion euros during the first quarter of 2024.
- In Spain, consumer spending in grocery has increased by 4.8% compared to the previous year, largely due to the stabilization of food prices.
- Additionally, the switching off DTT broadcasts has driven sales of consumer electronics in the tech and durables (T&D) sector, resulting in a growth of 3.5%. This positive trend highlights the resilience and adaptability of the Spanish consumer market.
Spending on FMCG, durable goods and home technology in Spain amounted to 35 billion euros during the first quarter of this year, according to the new NIQ Retail Spend Barometer, published today and launched quarterly as a joint analysis by NIQ and GfK.
Food price moderation sets the tone for the FMCG market.
Following a period of instability in the FMCG market, during which prices soared well above the general CPI (Consumer Price Index) in the country to reach levels not seen before, the first quarter of 2024 has shown a shift toward more moderate growth in food inflation. This trend is rapidly bringing prices back down to more sustainable levels, whilst spending across major categories has seen an increase of 5% in packaged food, 5.6% in fresh food and 2.7% in personal hygiene and perfumery.
Upward trend in T&D
Data for the T&D (Technology and Durable Goods) market during the first quarter of 2024 confirms the good performance of spending of home technology products, entertainment and other goods related to the automotive and health sectors, such as eyewear, with overall spending growing by 3.5% compared to the first quarter of 2023. This is due in part to the positive performance of the major categories, with an increase of 7.6% in consumer electronics; 6.9% in DIY and 1.7% in other durable goods, whilst household appliances was the only category showing negative growth, with a decrease of 2.7%.
“Although the situation with high prices is moderating, consumers have been in ‘saving’ mode for a long time and this helps to understand the positive evolution of the retail brand products, which continue to gain market share. With prices more moderate than in 2023, manufacturers have begun to reactivate the promotional lever and it is precisely special offers that are the measure most mentioned by households to control their spending”.
Antonio de Santos, Retailer Vertical Director of NIQ in Spain
“It is important to note the shifting trend in prices in a broad sense. Following a period of consistent average price increases across various major sectors, either due to inflation or changes in product offerings, we are now seeing a general decline in prices during this first quarter. This can be attributed to the slowdown of the CPI and the emergence of new market players who prioritize promotional strategies. As a result, consumers are encouraged to buy more”.
Fernando Gómez, Retail Head of GfK in Spain
