- 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 study shows that consumers in Spain have increased their spending by 5.1% on food, technological equipment, and durable goods compared to the previous year. The rise in food expenditures can be attributed to a decrease in prices for these products, while the surge in sales of consumer electronics is due to the SD broadcast switch-off and the European Football Championship.
Madrid-September 10, 2024. According to the latest edition of the NIQ Retail Spending Barometer, spending on consumer goods, durable goods, and home technology in Spain totaled 36,235 million euros in the second quarter of this year. This report, published today, is a result of the collaborative analysis conducted by NIQ and GfK. This joint effort provides the most comprehensive and accurate insight into consumer purchases in Spain.
The latest data reveals a 5.1% increase in spending compared to the same period in 2023. This growth, while moderate, can be attributed to the containment of prices in key categories such as food and perfumery-drugstore. However, there was a notable uptick in consumer purchases within the technology and durable goods (T&D) sector. This surge was fueled by the acquisition of televisions in light of the European Football Championship and the ongoing impact of the DTT switch-off.
The NIQ Retail Spending Barometer offers a comprehensive overview of spending in the FMCG (packaged food, fresh produce, personal and home care products) and T&D sectors (consumer electronics, home appliances, DIY, optical, automotive, publishing) in Spain and thirteen other significant markets including South Africa, China, Indonesia, France, UK, Germany, Italy, Netherlands, Switzerland, Austria, Poland, Chile, and Brazil.
This groundbreaking big data analysis, utilizing actual sales data, provides a unique perspective across various categories and channels. The NIQ Retail Spending Barometer is a unique quarterly publication that sets the standard for understanding consumer spending trends on a global scale.
FMCG: food prices continue to decline
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. Notably, 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. Vegetables and bread showed moderate growth, and fruit remained stable.
It is worth noting that the volume of fresh fish not consumed as frozen fish is minimal, indicating a shift towards frozen ready meals. This is evidenced by a 7% increase in volume for frozen ready meals, suggesting a transfer from fresh fish consumption.
Within the ambient foods category, nuts, to which positive health properties are attributed, and snacks, most often consumed during moments of indulgence, continue to show high increases in volume, of 9.3% and 4.3%, respectively, and in value for nuts, with 9.4% (3.8% for snacks). It should be noted that the price increase in olive oil continues to penalize the evolution of the volume of this category, which fell by 22%. The data currently being analysed regarding production expectations for this season gives cause for optimism regarding the potential moderation of prices and the anticipated recovery of consumption.
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. However, there seems to be a trend towards shifting from on-trade establishments to home consumption in categories such as coffees, infusions, and breakfast products like cookies and pastries.
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. Additionally, oral care has shown dynamic growth, with an 8% increase in demand. Hair care and fragrances are also contributing to the growth of this sector.
Conversely, the food sector has seen a decline of 5% in volume, which aligns with the decreasing birth rate in Spain. It is worth noting, however, that pet food continues to experience growth, with a 3% increase in weight sold.
T&D records its best data in years
During the second quarter of 2024, 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. Spending on these items by families continues to be positive, a fact of enormous relevance given the importance of the home for Spaniards and its role as an engine of the Spanish economy. The study highlights that all the categories analysed showed positive growth.
Upon further analysis of the results above, it is evident that the consumer technology goods market is experiencing a positive trend for the third consecutive quarter, with a notable 4.4% increase in sales. Particularly noteworthy is the outstanding performance in the television category, driven by the start of broadcasts exclusively in high definition (HD) in February and the excitement surrounding sporting events such as the European Football Championship. Spain’s victory in the championship further fueled consumer interest and led to a significant 27% growth in demand for television units. This sustained momentum in sales underscores the continued relevance and appeal of consumer technology goods in the market. It is noteworthy to mention the significant improvement in the performance of the Telecommunications sector, driven by the increasing popularity of smartphones, particularly in the high-end market segments. Additionally, there has been a notable increase in the sales of tablets, with a 22% rise in volume and a 21% increase in value. Furthermore, wearable devices have experienced a surge in demand, with a growth rate in the double digits, specifically a 30% increase. While the DIY and home improvement sector has experienced positive results, albeit to a lesser extent, with an additional 2.5% increase in sales, the driving force behind this trend can be attributed to climatic factors, particularly the role of air conditioning. Last year, during the second quarter, a period of unusually high temperatures resulted in a surge in sales and volume within this category. However, this year, the market has faced challenges due to mild weather conditions, leading to a significant decline in sales.
Furthermore, it is worth noting the notable increases in home automation and security products, such as alarms. These advancements in technology have contributed to the overall growth and diversification of the market.
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, mirroring the growth seen in coffee makers. Additionally, personal care products, such as hair stylers, experienced a surge in demand with a 16% increase during the second quarter.
Furthermore, 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. Optical products also demonstrated strong performance, with a 14% increase in glass sales. The market witnessed robust demand for models featuring advanced features across all these categories.
Overall, the second quarter showcased a positive trend in the durable goods sector, with household appliances and leisure products leading the way in terms of sales growth and consumer demand.
Antonio de Santos, the Retailer Vertical Director of NIQ in Spain, says that “the FMCG market in the second quarter of 2024 is following a similar trend to the beginning of the year. Food inflation is gradually moderating, approaching levels that can be considered normal. However, it is important to note that the cost of the shopping basket is still 30% higher than before the pandemic, impacting the purchasing decisions of many households”.
De Santos also highlighted that the volume of mass consumption remains strong, supported by record-breaking tourism numbers. “This positive trend is particularly evident in Autonomous Communities that are heavily reliant on tourism. This influx of tourists is contributing to the overall positive evolution of the market”.
“In conclusion, despite the challenges posed by food inflation and the lingering effects of the pandemic, the FMCG market in Spain is showing resilience and adaptability. It is crucial for retailers to stay informed and agile in order to navigate these changing market dynamics successfully” he adds.
Fernando Gómez Retail Head of GfK in Spain stated that “The T&D market in Spain remains a compelling sector for buyers, as homes continue to serve as hubs for leisure, work, and education. Despite the impact of inflation on purchasing power, consumers are not hesitating to invest in replacement and renovation. The growth of 5.1% in the second quarter is the highest in recent years, and this positive trend is evident across various categories including technological consumer goods, DIY and home improvement, leisure, and health”.
“A significant portion of consumer spending is driven by ongoing promotions from retailers, particularly through online channels which are increasingly integrated with physical stores through omnichannel strategies. As we approach the latter part of the year, with Back to School and Christmas campaigns on the horizon, promotions will play a crucial role in stimulating consumer activity amidst a potential slowdown in overall consumption. While certain markets like televisions may become saturated, others will remain resilient, resulting in a slightly positive trend for the market by year-end” he adds.
About the study
NIQ’s Retail Spending Barometer examines sales in FMCG, as well as technology equipment and durable goods (T&D) in Spain. It tracks actual sales figures and measures changes in past purchasing trends. Categories analyzed in consumer goods include fresh and packaged foods, home care and personal care products, and T&D categories include consumer technology goods, household appliances and DIY. The data comes from NielsenIQ and GfK’s retail market measurements, which together measure sales for more than 350,000 retail partners worldwide.
Press Contacts
NIQ
Susana Gómez, susana@finzelpr.com, 649 845 649
Piers Finzel, piers@finzelpr.com, 666 178 028
GfK
Antonieta Martín Martin, antonieta.martin@nielseniq.com 915 919 940
Alicia Medina, alicia@medinacomunicacion.com, 630 52 75 53
About NIQ
NIQ is the world’s leading consumer intelligence company, providing the most comprehensive understanding of consumer buying behavior and revealing new avenues for growth. In 2023, NIQ merged with GfK, uniting the two industry leaders with unprecedented global reach. NIQ is a portfolio company of Advent International, operating in more than 100 markets and covering more than 90% of the world’s population.
For more information, visit www.NIQ.com
GfK – An NIQ Company
GfK has earned the trust of its clients around the world by solving critical aspects of their decision-making process. In 2023, GfK merged with NIQ, bringing together the two industry leaders with unparalleled global reach. Together they drive clients’ growth by providing them with a comprehensive understanding of their consumers’ buying behavior, as well as the dynamics and trends impacting their markets, brands and media. With a holistic reading of distribution and the most comprehensive consumer insights, delivered with advanced analytics through state-of-the-art platforms, NIQ and GfK offer The Full View™, a complete view of consumer buying behavior.
