NIQ Retail Spend Barometer
Spain
Spanish households increased their spending on consumer goods by 4.5% in the third quarter of 2024
- The study reveals that Spaniards spent 4.5% more on consumer goods and 4.2% more on technological and durable goods (T&D) compared to the same period last year.
- The increased spending on the shopping basket continues to reflect the moderation in consumer goods prices,
- Sales of televisions continue to drive consumer electronics spending.
In the third quarter of this year, spending on consumer goods, durable goods, and home technology electronics in Spain totaled 37, 996 million euros, representing a 4.5% increase compared to the same period in 2023.
FMCG: food prices continue to decline
In the third quarter of 2024, the Spanish consumer goods market maintained its trend of price moderation, with growth remaining below 2%, a significant shift from earlier inflationary pressures. This stability encouraged a steady 2% year-on-year increase in demand by September, reflecting a recovery in market volume. Notably, the personal care sector led value growth at 9.5%, driven by increased spending on fragrances (+13.1%), make-up (+10.1%), body care (+10.6%), and hair care (+10.1%), showcasing a strong consumer focus on well-being. Ambient food categories also saw positive results, with snacks and confectionery achieving 3-4% growth in volume, and nuts increasing by 8%, highlighting healthier consumption trends.
Fresh products further contributed to this recovery, with categories like meat, fruits, vegetables, bread, and eggs growing in volume as prices stabilized. However, fish continued to decline (-6.3%). Among dry food items, dietetic products saw exceptional growth (+12.3%), reflecting heightened interest in health-oriented goods, while pet food volumes rose by 4.4%. Despite challenges like flat volume growth in chocolate and oil, consumer spending patterns indicate resilience, particularly in essential and health-driven categories.
T&D continues its strong acceleration
In the third quarter of 2024, Spain’s technology and durable goods (T&D) market saw significant growth across multiple sectors. The home technology market led with a 4.9% increase, primarily driven by a 17% surge in television sales, as consumers upgraded to HD devices following major sports events and broadcasts. The durable goods segment also grew by 5.2%, with books showing a surprising 10% rise, fueled by new product launches. Other categories such as optical goods, particularly lenses and premium sunglasses, experienced an 8% growth, while the DIY and home improvement sector saw a standout 11% increase in air conditioning sales due to favorable weather conditions.
Consumer spending in technological and household goods remained strong, with notable growth in smartphones (up 7%), especially in the premium segment, and a 3.9% rise in household appliances. Items such as vertical steam irons (+38%), coffee machines (+17%), and hoovers (+13%) saw significant increases. The white goods market also rebounded, with tumble dryers up by 16% and washing machines by 3%, boosted by online shopping. Consumers continue to focus on personal care, home, and kitchen products, with emerging trends in high-end appliances, reflecting a preference for innovation and convenience in everyday life.
“In Spain, the FMCG market continued to see price moderation, which has driven increased demand, with nearly all categories of packaged and fresh products showing positive volume growth this year. This upward trend in consumer purchases has been supported by overall economic progress, including rising household incomes, reduced mortgage costs, and a strong employment market. Despite ongoing macroeconomic uncertainties, the outlook for the short and medium-term remains cautiously optimistic.”
Antonio de Santos, Retailer Vertical Director of NIQ in Spain
“The technology and durables market in Spain grew, defying analysts’ expectations of a slowdown. Spanish consumers continued to spend on products related to equipment, health, leisure, and culture, signaling a positive outlook for a strong fourth quarter, barring unforeseen disruptions like recent flooding in the South. However, Gómez highlighted concerns within the sector due to decreasing prices, which, while benefiting households, have led consumers to favor more affordable Asian brands over established ones, affecting their market share. Additionally, there has been a noticeable shift towards online shopping, reversing the previous preference for physical stores.”
Fernando Gómez, Retail Head of GfK in Spain