NIQ Retail Spend Barometer
Spain

• Sales in fast-moving consumer goods (FMCG), home technologies, and durable goods in Spain surpassed 36 billion euros during the second quarter of 2024.
• The consumer goods sector, with a 5,1% growth, continued to reflect the trends observed in the preceding months.
• The technology and durable goods market experienced as well a 5.1% growth, marking the largest increase in recent years.

The spending on consumer goods, durable goods, and home technology in Spain totaled 36,235 million euros in the second quarter of this year, a 5.1% increase compared to the same period in 2023.

The second quarter of the year in the consumer goods sector continued to reflect the trends observed in the preceding months, with prices showing a moderate increase of 3.0% and volumes experiencing a 1.9% rise. The fresh produce saw an increase in volume, albeit not uniformly across all categories. Eggs and meat experienced growth, while fresh fish continued to decline sharply. The price increase in olive oil continues to penalize the evolution of the volume of this category, which fell by 22%. The decrease in beverage consumption in on-trade establishments did not directly translate to the home, except for wines, which experienced a slight increase. The consumption of soft drinks, beer, and high-alcohol beverages also declined in households. In the personal care sector, the importance of image is becoming increasingly significant for many consumers. Facial care and makeup products have experienced substantial growth, with a volume increase of 11% and an 8% increase in value. Oral care has also shown dynamic growth, with an 8% increase in demand. Conversely, the baby food sector has seen a decline of 5% in volume, which aligns with the decreasing birth rate in Spain. On the other hand, pet food continues to experience growth.

The technology and durable goods market in Spain experienced 5.1% growth in spending compared to the same period last year, marking the largest increase in recent years. Particularly noteworthy is the outstanding performance in the television category, driven by the SD switch-off in February and the excitement surrounding sporting events such as the European Football Championship that fueled consumer interest and led to a significant 27% growth in demand for television units. Although to a lesser extent, the results of DIY and home improvement are positive, with an additional 2.5% of sales. This trend is mainly due to a climatic aspect in which air conditioning plays a major role. In contrast, household appliances experienced a notable increase of 1.2%, marking a significant improvement compared to the same period last year. This growth was primarily driven by the resurgence of small household appliances (PAE) across various categories. Notably, vacuum cleaners saw a substantial 17% increase in sales. Within the durable goods sector, leisure products emerged as the top performers, boasting double-digit sales growth in terms of value. Books saw a remarkable 16% increase in sales, while music products followed closely behind with a 13% growth.

“Spending on mass consumption in Spain is maintaining the same pace as at the beginning of the year, due to the gradual moderation of inflation. However, shopping is now 30% more expensive than before the pandemic, which influences consumer decisions, both in choosing the establishment and the content of the basket. Despite this, consumption volume remains positive, driven by tourism, especially in the regions most impacted by this factor.”

Antonio de Santos, Retailer Vertical Director of NIQ in Spain

“Consumers continue to invest in their homes despite the decline in their purchasing power. The 5.1% growth in the technology and durable goods market during the second quarter is the highest in recent years, proving positive figures for all areas analysed. Promotions carried out with omnichannel strategies have boosted consumption. By the end of the year, the Back to School and Christmas campaigns will cause the market to end on a slightly positive trend.”

Fernando Gómez, Retail Head of GfK in Spain

2023