Table of Contents
Health and Wellness in Spain - Industry Overview
EXECUTIVE SUMMARY
Financial crisis adversely impacts value growth
Increasing awareness of health and wellness among Spaniards
Private label versus branded references
New target audiences
Distribution remains an issue
KEY TRENDS AND DEVELOPMENTS
HW food manufacturers keen on R&D
Government legislation attempting to shape demand
The impact of the financial crisis
Spain’s ageing population
Private label, from follower to leader
MARKET DATA
Table 1 Sales of Health and Wellness by Type: Value 2005-2010
Table 2 Sales of Health and Wellness by Type: % Value Growth 2005-2010
Table 3 Sales of Health and Wellness by Category: Value 2005-2010
Table 4 Sales of Health and Wellness by Category: % Value Growth 2005-2010
Table 5 Health and Wellness GBO Company Shares 2006-2010
Table 6 Health and Wellness NBO Company Shares 2006-2010
Table 7 Health and Wellness Brand Shares 2007-2010
Table 8 Forecast Sales of Health and Wellness by Type: Value 2010-2015
Table 9 Forecast Sales of Health and Wellness by Type: % Value Growth 2010-2015
Table 10 Forecast Sales of Health and Wellness by Category: Value 2010-2015
Table 11 Forecast Sales of Health and Wellness by Category: % Value Growth 2010-2015
APPENDIX
Health and wellness legislation
Sources of food and environmental concerns
SOURCES
Summary 1 Research Sources
Health and Wellness in Spain - Company Profiles
Housediet SL in Health and Wellness (Spain)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
Chart 1 Housediet SL: Naturhouse in Barcelona
PRIVATE LABEL
Summary 4 Housediet SL: Private Label Portfolio
COMPETITIVE POSITIONING
Kaiku Corporación Alimentaria SL in Health and Wellness (Spain)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 7 Kaiku Corporación Alimentaria SL: Competitive Position 2010
Natursoy SL in Health and Wellness (Spain)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 10 Natursoy SL: Competitive Position 2010
Better For You Beverages in Spain - Category Analysis
HEADLINES
TRENDS
The number of overweight consumers in the Spanish population is increasing. It was estimated that in 2010 around 38% of entire population were deemed overweight, and around 15% were considered obese. This is one the main reasons for the development and investment by large multinationals in BFY beverages. These products are increasing sales and penetration year by year and it is now easy to find them in all supermarkets and hypermarkets. Consumers have readily welcomed non-sugar soft drinks as major companies have invested heavily to expand flavours and maintain prices. Thus, reduced sugar beverages is the most important product type in BFY beverages
COMPETITIVE LANDSCAPE
The Coca-Cola Co is the clear leader in BFY beverages due to its high penetration in reduced sugar soft drinks. The Coca-Cola Co benefits from its extensive distribution of regular products across all supermarkets and hypermarkets in Spain and includes BFY beverages. Moreover, the US company is focusing heavily on this category not only in terms of advertising campaigns but also in terms of developing new products and new flavours.
PROSPECTS
The success of private label will be one of the most important trends over the forecast period. Private label products increased their strength sharply during the financial crisis and most industry sources believe that it will be very difficult for regular brands/companies to recover their previous market share. Consumers have realised that private label offers good quality at reduced prices and many are becoming increasingly loyal to them, as they would a brand in the past.
CATEGORY DATA
Table 12 Sales of BFY Beverages by Category: Value 2005-2010
Table 13 Sales of BFY Beverages by Category: % Value Growth 2005-2010
Table 14 BFY Beverages Company Shares 2006-2010
Table 15 BFY Beverages Brand Shares 2007-2010
Table 16 Forecast Sales of BFY Beverages by Category: Value 2010-2015
Table 17 Forecast Sales of BFY Beverages by Category: % Value Growth 2010-2015
Better For You Packaged Food in Spain - Category Analysis
HEADLINES
TRENDS
The economic crisis strongly affected the spending power of most Spaniards and private label has become an excellent alternative to branded BFY packaged food references. In almost all categories of BFY packaged food a private label product has emerged to compete with regular brands although the former’s impact has not been the same in all categories. Although growth has not been as strong as it was earlier in the review period, in volume terms positive growth of any magnitude is deemed an achievement given the weak economic context.
COMPETITIVE LANDSCAPE
BFY packaged food is becoming a mature market in Spain and products enjoy wide availability in terms of distribution and are well known by consumers. However, the strong loyalty to regular or non-BFY references is still a key barrier for manufacturers. The reason for this is that consumers tend to know brands very well and they know that most regular brands offer a high standard of quality so sometimes they are reluctant to try a brand extension within the BFY area. In this sense, strong brand loyalty is more a barrier than a facilitator for manufacturers.
PROSPECTS
Many Spaniards have shifted from branded to private label products due to their limited spending power and many have also come to the realisation that private label products also offer comparable high quality. Some of these consumers will revert to their old purchasing habits when the crisis ends and will go back to buying brands, but many other consumers (especially the young and older people) will remain loyal to private label products. For this reason it is expected that brands are unlikely to reach their pre-crisis market share levels.
CATEGORY DATA
Table 18 Sales of BFY Packaged Food by Category: Value 2005-2010
Table 19 Sales of BFY Packaged Food by Category: % Value Growth 2005-2010
Table 20 Other Reduced Fat Food by Type: % Value Breakdown 2005-2010
Table 21 BFY Packaged Food Company Shares 2006-2010
Table 22 BFY Packaged Food Brand Shares 2007-2010
Table 23 Forecast Sales of BFY Packaged Food by Category: Value 2010-2015
Table 24 Forecast Sales of BFY Packaged Food by Category: % Value Growth 2010-2015
Food Intolerance in Spain - Category Analysis
HEADLINES
TRENDS
In 2010, food intolerance sales experienced positive and very significant growth despite the weak economic situation. These products have been boosted by the number of new-born babies in Spain being diagnosed with such intolerances in recent years. Diabetes, and gluten and lactose intolerance are now health conditions seen in new-born babies, in sharp contrast to previous decades, when such diseases were relatively uncommon in the very young. Tests are now carried out during the first months of life, in order to introduce diets and appropriate food habits for those with diabetes, and gluten or lactose intolerance. Concerns about these conditions have led to the growth of custom-made products for various food intolerances, making this category one of the fastest growing in health and wellness in Spain.
COMPETITIVE LANDSCAPE
Within diabetic food, Santiveri SA is the leading company, taking advantage of its traditional presence in the market, as one of the oldest manufacturers in the dietetic sector in Spain. In terms of gluten-free products, the market is more heterogeneous depending on the subcategory, with Proceli Turull SL, Nestlé España SA and Dr Schär GmbH as leading manufacturers in bakery, baby food and pasta, respectively. In terms of lactose-free products, Kaiku Corporación Alimentaria SL leads lactose-free dairy products, Marco Polo Italian Foods SL leads lactose-free ice cream and Laboratorios Alter SA leads lactose-free milk formula.
PROSPECTS
During the forecast period, the food intolerance market will be characterised by general and very significant decreases in unit prices as a result of increasing competition, entry of more manufacturers, growth of private label and primarily increased demand among Spanish consumers. The difference between the prices of regular and food intolerance products will diminish, although this difference will remain throughout the forecast period.
CATEGORY DATA
Table 25 Sales of Food Intolerance by Category: Value 2005-2010
Table 26 Sales of Food Intolerance by Category: % Value Growth 2005-2010
Table 27 Lactose-free Dairy Products by Type: % Value Breakdown 2006-2010
Table 28 Food Intolerance Company Shares 2006-2010
Table 29 Food Intolerance Brand Shares 2007-2010
Table 30 Forecast Sales of Food Intolerance by Category: Value 2010-2015
Table 31 Forecast Sales of Food Intolerance by Category: % Value Growth 2010-2015
Fortified/Functional Beverages in Spain - Category Analysis
HEADLINES
TRENDS
Spain lags behind most Western European markets when it comes to fortified/functional (FF) beverages. Their significance within the overall FF market is negligible and only juices drinks in all their varieties present moderate figures. Their higher average unit price compared to non-fortified/functional varieties is certainly an important barrier to expansion given the current economic situation in Spain. Moreover, consumers remain suspicious of added ingredients especially when it comes to juice-based drinks.
COMPETITIVE LANDSCAPE
Health concerns are growing in importance in Spain but this is not a category where this trend is actually driving performance. Within juices and nectars consumers are typically looking for extra vitamins to increase the natural nutrients already present in fruits, while in chocolate-based flavoured powder drinks with fibre, consumers look for aids to improve their digestive system. In soft drinks and hot drinks in particular, fortified/functional sales are negligible because consumers prefer better for you products to improve specific health conditions.
Table 32 Fortified/functional Nectars (25-99% Juice) by Key Functional Ingredient, Retail Value Sales 2005-2010
Table 33 Fortified/functional Nectars (25-99% Juice) by Claim Type, Retail Value Sales 2005-2010
PROSPECTS
The financial crisis and economic problems facing Spain are expected to continue through 2012; however, with any economic recovery, private label is expected to continue its penetration as these products have become a regular fixture in Spanish households due to their quality and reduced price.
CATEGORY DATA
Table 34 Sales of Fortified/Functional Beverages by Category: Value 2005-2010
Table 35 Sales of Fortified/Functional Beverages by Category: % Value Growth 2005-2010
Table 36 Other Fortified/Functional Hot Drinks by Type: % Value Breakdown 2005-2010
Table 37 Key Functional Ingredients in Fortified/Functional Bottled Water: % Breakdown 2006-2010
Table 38 Key Functional Ingredients in Fortified/Functional Non-Cola Carbonates: % Breakdown 2006-2010
Table 39 Key Functional Ingredients in Fortified/Functional 100% Juice: % Breakdown 2006-2010
Table 40 Key Functional Ingredients in Fortified/Functional Juice Drinks (up to 24% juice): % Breakdown 2006-2010
Table 41 Key Functional Ingredients in Fortified/Functional Nectars (25-99% juice): % Breakdown 2006-2010
Table 42 Fortified/Functional Beverages Company Shares 2006-2010
Table 43 Fortified/Functional Beverages Brand Shares 2007-2010
Table 44 Forecast Sales of Fortified/Functional Beverages by Category: Value 2010-2015
Table 45 Forecast Sales of Fortified/Functional Beverages by Category: % Value Growth 2010-2015
Fortified/Functional Packaged Food in Spain - Category Analysis
HEADLINES
TRENDS
The FF packaged food market enjoys a good perception among Spaniards and has been present for several years in Spain. Prior to the financial crisis, consumers were already buying fortified references in considerable quantity, and following the depths of the downturn they have continued with the same trend. In addition, as a result of rising consumer demand, the appearance of private label references also boosted sales in this category. Many consumers, faced with reduced incomes due to the financial crisis but not wanting to change their health and wellness habits, have opted for private label alternatives.
COMPETITIVE LANDSCAPE
Major multinationals such as Danone SA, Cadbury España SL, Unilever Foods España SA and Iparlat SA, which lead regular markets, have developed new ranges based on health and wellness and thereby developed leading positions in FF packaged food as consumers have full confidence in the quality of their brands. On the other hand, it should be noted that several other health and wellness-specific brands such as Bicentury and Gerblé and hold the leading positions in key categories such as FF biscuits. Their main strategy is to offer high-quality products at affordable prices, located in modern distribution outlets accessible to a wide audience.
Table 46 Pro/Pre Biotic Yoghurt by Key Functional Ingredient, Retail Value Sales 2005-2010
Table 47 Pro/Pre Biotic Yoghurt by Claim Type, Retail Value Sales 2005-2010
Table 48 Other Functional Yoghurt by Key Functional Ingredient, Retail Value Sales 2005-2010
Table 49 Other Functional Yoghurt by Claim Type, Retail Value Sales 2005-2010
Table 50 Functional Spreadable Oils and Fats by Key Functional Ingredient, Retail Value Sales 2005-2010
Table 51 Functional Spreadable Oils and Fats by Claim Type, Retail Value Sales 2005-2010
Table 52 Functional Gum by Key Functional Ingredient, Retail Value Sales 2005-2010
Table 53 Functional Gum by Claim Type, Retail Value Sales 2005-2010
PROSPECTS
Changing daily habits among Spaniards will be the most important trend shaping this market in the following years. Some categories will experience sharp growth due to these new habits and the new audience that FF packaged food will attract. FF confectionery will become increasingly important and this category, which had a negligible presence in previous years, is a clear example of changing habits and new target groups. Other categories, especially those most associated with daily habits, such as breakfast cereals and biscuits will strongly increase their presence in Spanish households.
CATEGORY DATA
Table 54 Sales of Fortified/Functional Packaged Food by Category: Value 2005-2010
Table 55 Sales of Fortified/Functional Packaged Food by Category: % Value Growth 2005-2010
Table 56 Sugarised Vs Sugar-free Fortified/Functional Gum: % Breakdown 2009
Table 57 Sugarised Vs Sugar-free Fortified/Functional Sugar Confectionery: % Breakdown 2009
Table 58 Standard Fat Vs Reduced Fat Fortified/Functional Yoghurt: % Breakdown 2009
Table 59 Other Fortified/Functional Food by Type: % Value Breakdown 2005-2010
Table 60 Key Functional Ingredients in Fortified/Functional Biscuits: % Breakdown 2006-2010
Table 61 Key Functional Ingredients in Fortified/Functional Breakfast Cereals: % Breakdown 2006-2010
Table 62 Key Functional Ingredients in Fortified/Functional Bread: % Breakdown 2006-2010
Table 63 Key Functional Ingredients in Fortified/Functional Gum: % Breakdown 2006-2010
Table 64 Key Functional Ingredients in Fortified/Functional Sugar Confectionery: % Breakdown 2006-2010
Table 65 Key Functional Ingredients in Flavoured Milk Drinks: % Breakdown 2006-2010
Table 66 Key Functional Ingredients in Fortified/Functional Milk: % Breakdown 2006-2010
Table 67 Key Functional Ingredients in Fortified/Functional Yoghurt: % Breakdown 2006-2010
Table 68 Key Functional Ingredients in Fortified/Functional Snack Bars: % Breakdown 2006-2010
Table 69 Key Functional Ingredients in Fortified/Functional Spreadable Oils and Fats: % Breakdown 2006-2010
Table 70 Fortified/Functional Packaged Food Company Shares 2006-2010
Table 71 Fortified/Functional Packaged Food Brand Shares 2007-2010
Table 72 Fortified/Functional Bread Brand Shares 2007-2010
Table 73 Forecast Sales of Fortified/Functional Packaged Food by Category: Value 2010-2015
Table 74 Forecast Sales of Fortified/Functional Packaged Food by Category: % Value Growth 2010-2015
Naturally Healthy Beverages in Spain - Category Analysis
HEADLINES
TRENDS
NH beverages are taking advantage of the increasingly poor reputation held by carbonated beverages, which are now perceived by many Spaniards as unhealthy beverages. Indeed, the Spanish government is trying to encourage children and young people away from drinking carbonated beverages, removing them from vending machines in schools for example. As a result of this unfavourable perception, NH hot drinks such as NH tea and NH soft drinks such as NH 100% juice have appeared as the most suitable beverages for those consumers aiming to remove carbonates from their diet and introduce healthier references instead. In this context, NH bottled water is already a more mature product, therefore growth has not been as dynamic. On the other hand, NH tea and 100% juice are less developed in Spain so they provide new alternatives to carbonates.
COMPETITIVE LANDSCAPE
In terms of leading players, the NH beverages market is clearly led by Aguas Font Vella y Lanjarón SA, the largest company in still natural mineral water in Spain, which is the largest subcategory in the NH beverages market. Other brands such as Don Simón and Granini, in NH 100% juice, are key products in the Spanish NH beverages market. They have a long tradition in the beverages market, a position that they have taken advantage of to launch NH products and gain market share from health specialists.
PROSPECTS
NH beverages are expected to maintain positive performance during the forecast period thanks to the changing habits among Spaniards, towards healthier drinks, reducing the quantity of carbonated beverages they consume. This trend will be key in order to boost volume sales, especially in terms of NH soft drinks such as NH 100% juice and NH superfruit juice. On the other hand, unlikely to repeat the same growth as during the 2005-2010 period, NH hot drinks are also expected to experience sustained positive growth over 2010-2015, especially NH tea. Tea, in general terms, has never been as popular in Spain as in some other countries, but with the introduction of healthy food habits, this product appears to have become a preferred beverage for many Spaniards increasingly concerned about their health.
CATEGORY DATA
Table 75 Sales of NH Beverages by Category: Value 2005-2010
Table 76 Sales of NH Beverages by Category: % Value Growth 2005-2010
Table 77 Other NH Hot Drinks by Type: % Value Breakdown 2005-2010
Table 78 NH Beverages Company Shares 2006-2010
Table 79 NH Beverages Brand Shares 2007-2010
Table 80 NH Green RTD Tea Brand Shares 2007-2010
Table 81 Forecast Sales of NH Beverages by Category: Value 2010-2015
Table 82 Forecast Sales of NH Beverages by Category: % Value Growth 2010-2015
Naturally Healthy Packaged Food in Spain - Category Analysis
HEADLINES
TRENDS
NH packaged food has been one of the health and wellness categories to benefit most from changing food trends and habits among Spaniards. Nonetheless, this is one of the oldest HW packaged food categories, as it features no artificial or non-natural intervention, on the contrary, it is perceived as perhaps the healthiest packaged food category by consumers. This factor has been key in competing against other HW categories, especially better for you food or fortified/functional food, which Spaniards are more reluctant to consume because they are not perceived as healthy. NH high fibre food, NH olive oil and NH nuts form part of the traditional Mediterranean diet, which is now the paradigm of the healthiest natural food habits in Spain. Therefore, all the public promotion of the Mediterranean diet, which has increased significantly during the last few years, is directly boosting sales of NH packaged food.
COMPETITIVE LANDSCAPE
Carrefour SA and Mercadona SA were the two leading players in the Spanish NH packaged food market in 2010. They are two of the largest supermarket/hypermarket chains in Spain and offer their own private label brands. This leadership, with over a fifth of value sales held by the two companies in 2010, shows how private label has grown in the NH packaged food market in Spain as a result of the effect of the financial crisis on private consumption. Spaniards now look for the cheapest products when it comes to packaged food so private label is clearly favoured. In addition to Carrefour and Mercadona, SOS Cuétara SA, Bimbo SA and Leche Pascual SA, three food manufacturers with long tradition in the Spanish market, are the other leading players in the NH packaged food market, thanks to their position and reputation in the regular food industry.
PROSPECTS
NH packaged food is expected to experience healthy growth in volume sales during the forecast period, sustained by increasing demand and the reduction in unit prices due to the entry of more competition in the market. These food products are likely to become mass-targeted products within the next five years, because Spaniards are increasingly willing to improve their food habits. Obesity is becoming a major issue in Spain, a society once featuring one of the healthiest food diets in the world. The combination of public action against unhealthy food habits and the increasing importance of personal image and health among Spaniards, not just women but increasingly among men, will lead to growth in this industry.
CATEGORY DATA
Table 83 Sales of NH Packaged Food by Category: Value 2005-2010
Table 84 Sales of NH Packaged Food by Category: % Value Growth 2005-2010
Table 85 NH Packaged Food Company Shares 2006-2010
Table 86 NH Packaged Food Brand Shares 2007-2010
Table 87 Forecast Sales of NH Packaged Food by Category: Value 2010-2015
Table 88 Forecast Sales of NH Packaged Food by Category: % Value Growth 2010-2015
Organic Beverages in Spain - Category Analysis
HEADLINES
TRENDS
The organic beverages industry in Spain remains relatively small compared with other European countries. Although the market enjoyed volume growth in 2010, this growth was not uniform throughout the industry, as there are some beverages that are more likely to experience growth because they have an image more associated with health and organic attributes. Specifically, organic tea and organic 100% juice are the most dynamic organic beverages in Spain because for those consumers that do not know much about organic food and beverages, both these products appear to be the healthier by nature. They come directly from organic agriculture and therefore better represent the values of organic food. The fastest growth in organic beverages is therefore being reduced to a few categories with long tradition and it is not proving easy to spread organic “values” to other beverages.
COMPETITIVE LANDSCAPE
Carrefour SA was the leading player in the Spanish organic beverages market in 2010. The Carrefour Eco brand is a private label by one of the largest hypermarket chains in Spain. This leadership shows how private label has firmly established itself in the organic market in Spain as a result of the impact of the financial crisis on private consumption. In addition to Carrefour, El Corte Inglés SA (another private label player) and J. García Carrión SA are the other leading players in the organic beverages market. El Corte Inglés has a strong reputation as a supermarket for premium and high-quality products, and organic products enjoy this perception among Spaniards. J. García Carrión SA is one of the leading fruit juice drinks manufacturers in Spain and has traditionally been a pioneer in the introduction of new emerging products.
PROSPECTS
Organic beverages are closely related to environmentally-friendly production and agriculture, and usually to fair trade policies in developing countries. Therefore, the expected increase in the popularity of this trend among Spaniards is likely to boost sales of organic beverages. In addition, Spanish consumers are increasingly concerned about the impact of beverages on their health, especially in terms of obesity, diabetes or other diseases. Organic beverages appear to represent an ideal way to improve food habits and introduce a healthier diet. A combination of these trends will lead to sustained growth for this industry, helping it to approach the levels of importance it has already reached in other European countries.
CATEGORY DATA
Table 89 Sales of Organic Beverages by Category: Value 2005-2010
Table 90 Sales of Organic Beverages by Category: % Value Growth 2005-2010
Table 91 Organic Beverages Company Shares 2006-2010
Table 92 Organic Beverages Brand Shares 2007-2010
Table 93 Forecast Sales of Organic Beverages by Category: Value 2010-2015
Table 94 Forecast Sales of Organic Beverages by Category: % Value Growth 2010-2015
Organic Packaged Food in Spain - Category Analysis
HEADLINES
TRENDS
In 2010, organic packaged food continued its growth in the Spanish market, despite negligible sales compared with other European countries. Organic food is becoming a fashionable, upmarket habit for young consumers, especially professionals with middle to high incomes, who see organic food as a way to display their preferences about the environment, personal image, healthy habits, modern lifestyles, etc. Growth remains largely limited to this niche and the current financial crisis has not helped encourage mass consumer expansion. In addition, changes to the regulatory environment, making it more difficult to fulfil the requirements necessary to launch organic products and use the organic label, have meant that many manufacturers have decided to remove some of their organic products and some consumers have perceived that the market has reduced. In truth, it has contributed to the market containing higher-quality products and “real” organic food products, thereby improving the reputation of the market and preserving the essence and values of these products.
COMPETITIVE LANDSCAPE
Carrefour SA is the leading player in the Spanish organic packaged food market. Its private label brand, Carrefour Eco, has managed to take advantage of the economic downturn, and since 2007 has increased its market share significantly. Despite not being a premium brand and recognised for high quality, Carrefour offers cheap products for beginner consumers, who want to try organic food but are still sensitive to price, particularly given the current financial crisis. Following Carrefour, Grupo Varma and Natursoy SL are the other two leading players in the industry. These manufacturers focus on the organic market and therefore they are specialists, offering quality and variety.
PROSPECTS
The slowdown in organic packaged food growth in 2009 and 2010 is expected to be reversed in 2011 and 2012, as consumption recovers and therefore more consumers are willing to spend more money on healthy food as healthy eating habits are increasingly popular among Spaniards. During the forecast period, organic packaged food will grow in both volume and constant value terms, although the increasing number of players and increasing competition will force unit prices gradually down. This growth will be boosted by the public sector, which will maintain and even increase its promotion of organic food and agriculture, as Spain is a major producer of organic food products, but exports tend to far outstrip domestic consumption.
CATEGORY DATA
Table 95 Sales of Organic Packaged Food by Category: Value 2005-2010
Table 96 Sales of Organic Packaged Food by Category: % Value Growth 2005-2010
Table 97 Other Organic Food by Type: % Value Breakdown 2005-2010
Table 98 Organic Packaged Food Company Shares 2006-2010
Table 99 Organic Packaged Food Brand Shares 2007-2010
Table 100 Organic Dried Baby Food Brand Shares 2007-2010
Table 101 Forecast Sales of Organic Packaged Food by Category: Value 2010-2015
Table 102 Forecast Sales of Organic Packaged Food by Category: % Value Growth 2010-2015