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Private label products are advancing unabated in Spain. Faced with the steep rise in prices and with nearly 50% average market share, all distribution chains, without exception, are strengthening the weight of their own brands at the expense of manufacturers.

According to data from the consultancy Kantar Worldpanel, private label brands are growing with varying degrees of strength in both companies where they already had a very relevant presence, such as Mercadona, Lidl, Aldi, or Dia, and in those where their participation was previously smaller, such as Carrefour, Alcampo, Eroski, El Corte Inglés, or even the IFA Group. Major manufacturers admit that “this is a widespread phenomenon” and warn, in this regard, that as a consequence of this, there is a massive withdrawal of their products from the shelves. “They are pushing us out of the market” to strengthen their own brands,” they assert.

At Lidl, for example, private label products have reached 81.9% of total sales, almost two points more than a year ago, and at Mercadona, Hacendado and the rest of its brands already represent 74.5% of the business, which is six tenths more than the 73.9% a year ago. Considering that between these two chains, according to Kantar, they capture more than a third of the market share, the space left for manufacturers to grow is increasingly reduced.

The problem, as warned by the food and consumer goods industry, is that their case is not an exception. In fact, there are two other chains where private label brands already account for more than 50% of their sales: Aldi, which has increased the presence of its own brand by another three tenths, up to 61.1% of the total business, and Dia, where it already represents 56.3% of sales after growing by more than two percentage points compared to last year.

It is also noteworthy the strong growth that private label brands are experiencing in chains where their presence was previously more limited. This is happening at Consum, where it now reaches 35.9%, almost three points more than the 33% it represented a year ago, and to a lesser extent also at Carrefour or Eroski, with growth of almost two points, up to 31.4% and 28.4% of the total, respectively. The same occurs in the rest of the chains, where the presence of distribution brands is still small, but also growing. This is the case at Alcampo, the IFA group, or El Corte Inglés, where although the presence of manufacturers remains very important, private label products already account for 15.2% of their sales, compared to the 14.7% it represented in 2023.

Major manufacturers denounce that behind this strategy lies the supermarkets’ intention to expel them from the market. According to Promarca, the association defending major manufacturers, the six major chains present in the market – Mercadona, Carrefour, Lidl, Eroski, Dia, and Alcampo – have withdrawn a total of 3,666 references in the last six years, while increasing their own by 1,818. Thus, and only so far this year, Carrefour has removed Pepsico group products from its shelves, accusing it of an unjustified price increase; Dia has removed Bimbo from its stores, and Mercadona has withdrawn Leche Pascual.

Ignacio Larracoecha, the president of Promarca, assures that it is a phenomenon that does not respond in any case to meeting consumer demands but rather to promoting their own brands through alleged unfair competition practices. “Unfair competition” “They are applying higher trade margins to manufacturers’ brands, which causes their products to become more expensive. In this way, they deny consumers access, with the consequent decrease in market variety, and prevent innovations from reaching supermarket shelves,” explains Larracoechea. The assortment of manufacturers in the six major chains analyzed by Kantar has thus been reduced by 23% since 2019. According to their data, Mercadona has cut the number of manufacturer references by 45%, Dia by 42%, Eroski by 31%, Alcampo by 23%, Carrefour by 20%, and Lidl by 14%. The consequence, according to Larracoechea, is already evident.

“They are closing factories and destroying jobs, also causing a price increase,” asserts the manufacturers’ representative unequivocally. In the midst of all this battle, distribution is insisting on supermarkets to adjust their margins in order to continue lowering prices, something they consider essential to recover sales and boost consumption. However, the food industry, which has been experiencing a steep increase in costs for the past two years, categorically refuses to take any measures in this direction.

Source: elEconomista

Many of the world’s most successful retailers are using their private labels to differentiate themselves from competitors, create unique and attractive propositions, and foster customer loyalty, suggests the latest report from the consulting firm Dunnhumby, ‘Winning with Private Brands, the Customer First Way’.

Take, for example, the American online food specialist H-E-B, which lost its position to Amazon in Dunnhumby’s RPI 2022 report. This year, H-E-B has regained the top spot, “largely thanks to its private label proposition, which has been very well received by consumers,” says the consultancy.

It is not the only case. In Spain, France, Germany, the United Kingdom, and Italy, all the brands that scored above average also had positive ratings in aspects such as price, quality, and variety of their private label products.

In the United States, brands that have managed to build a beloved private label grow much faster than their rivals; this is the case with Costco, Trader Joe’s, and H-E-B, among others (see graph below).

“It is not mere coincidence,” warn Dunnhumby. Behind the success of many of these brands is a progressive approach that has led them from ‘generic brands’ to developing genuine private labels recognized by consumers.

These consumers consider factors such as price, quality, and variety in each product and category when choosing one retailer over another, but having a strong private label can itself sway their purchasing decisions.

SIX KEY ASPECTS IN PRIVATE LABEL DEVELOPMENT Based on their own RPI studies and surveys of various retailers worldwide, the consultancy has identified six major innovation factors in private label.

1. Value. This is one of the most considered aspects by consumers worldwide, which has forced retailers to design their pricing and assortment strategies very well. “Private label represents an opportunity to reinforce the perception of value,” emphasize Dunnhumby.

A good example of this is Smart Way, one of the brands of the American retailer Kroger, which combines 16 of its previous brands and has allowed it to be more recognizable and increase its perceived value.

2. Health. Consumer concern for health has not stopped increasing since the pandemic, even during the inflationary situation of recent years. For this reason, many retailers have designed healthier and more affordable private label options, including vegetarian, vegan, natural, and organic products.

This strategy is increasingly common among discounters, who use it to improve their market position and attract higher-income consumers.

An example of this is Lidl’s introduction of vegan and organic products in its private label, which has allowed it to differentiate itself from other discounters and competitors.

3. Sustainability. Like health, it is one of the issues that increasingly concerns consumers. From a private label perspective, packaging is particularly relevant in this aspect, and more initiatives are being seen incorporating recycled materials and bulk products.

A good example of this is Mercadona, which has promoted a general review of its private label packaging and assortments to ensure they meet their sustainability goals.

4. Quality. Private label has traditionally been associated with lower quality products, but this has begun to change thanks to the good work of retailers. In this sense, boosting the image of private label is only a first step.

A good example of this is Tesco’s Finest line, which consists of high-quality ready meals with very extensive details about ingredients and recipes.

5. Breadth of Categories. Food is not the only field where private label can be applied, as demonstrated by the growing investment of retailers in their own brands of clothing, shoes, or homeware.

For example, the Portuguese retailer Continente has private labels in pet food, health and beauty, frozen foods, and fish, among others.

6. Brand Activation. Retail media has become one of the big topics in the sector over the past decade. Its use is no longer exclusive to manufacturer brands; private label also makes use of them to boost, for example, seasonal sales.

The best example of this is Lidl, which has continually increased in-store signage to improve the visibility of its brand.

Source: Financial Food

Carme Artigas, co-president of the UN AI Advisory Board, former Secretary of State for Digitalization and Artificial Intelligence, and expert in Big Data, Artificial Intelligence, and technological innovation, gave a talk at the Aecoc General Assembly about the disruptive technologies that will transform the economy and consumer goods sector.

Artigas referred to disruptive technologies, explaining that disruption “is the end of the status quo. What we once considered certain and valid is no longer so, and will not be in the future. Competitors are also different, so market dynamics change radically.”

The AI specialist stated that “we are facing a change of such magnitude that consumption decisions will not be made by people, but by Artificial Intelligence. Given this reality, we must embrace disruption because we will always be subject to the forces of change. To adapt company services to the new context, it will be essential to focus on the application of big data and artificial intelligence.”

Furthermore, the technology and AI expert reviewed the evolution of computing power from its origins to the consolidation of current big data, introducing the opportunities and limitations of this innovation. “Artificial Intelligence is not eliminating basic but essential jobs, but rather those related to knowledge areas (consultants, data analysts…). Previously, there was a shortage of such profiles, whereas now AI can solve half of these services. However, what AI cannot replace is the waiter or the person who serves you in a hotel.”

Regarding consumer goods, Carme Artigas detailed that competitive business analyses should be studied based on the available data from each company, in order to identify opportunities that allow for sustainable growth. She also highlighted the importance of investing in cybersecurity with a significant fact: 90% of companies do not have data recovery plans, so if affected by a cyberattack, they would not have the capability to recover information.

On the other hand, Artigas acknowledged the current difficulty in accounting for the impact of AI and big data. “Currently, we are not aware of the impact of the digital economy because current economic indicators do not register this impact. We have a 21st-century economy with 19th-century indicators. Therefore, a country’s GDP is not as significant as we believe because it does not account for the data economy, which gives us an unrealistic picture of each State’s situation.”

“Moreover, current geopolitics are based on technology, and yet some data-dominating entities are not countries but companies that can also determine the current reality. Therefore, it is imperative to govern AI not only by considering future risks but also current ones. The capacity for human transformation is in our hands, and it is up to us to set limits and establish prohibited uses of AI,” she concluded.

Source: Financial Food

Despite the rise of e-commerce, 92% of Europeans still prefer physical stores for their shopping. Austria (17%) and France (13%) stand out as the countries most inclined towards online-only shopping.

This is revealed by the study “The State of Shopping 2024” on shopping trends conducted by ShopFully in collaboration with Offerista Group. The analysis, carried out in February of this year and involving around 11,000 consumers from eight European countries, including Spain, Italy, France, and Germany, offers an in-depth view of the preferences and shopping habits of consumers in the Old Continent.

As for Spaniards, they place great importance on touching and trying products before buying them, with 61% of consumers choosing physical stores for this reason. In-store offers (51%) and immediate possession of the product (29%) are also key reasons. Specifically, 57% of Spaniards prefer to buy food, beverages, pharmacy, and drugstore items in person. However, for electronics (32%), fashion (27%), and children’s items and toys (27%), the preference for online shopping is notable, although the preference for physical stores still prevails.

On the other hand, the study reveals that when shopping online, “click and collect” emerges as a highly appreciated option in Spain, with 88% of consumers favoring it. This figure far exceeds the German average (44%) and the Italian average (64%). Additionally, 86% of Europeans who opt for this method end up buying additional products when collecting their order in the store. These data demonstrate the growing importance for physical stores to incorporate digital services like “click & collect,” not only as a convenience for consumers but also as an effective strategy to stimulate additional purchases and enhance the shopping experience.

Consumers in Search of Promotions Throughout the Year

The study reveals a notable preference for personalization in Spain. Sixty percent of Spanish consumers are willing to share their shopping preferences to receive personalized messages, surpassing the European average (50%). In contrast to Spain, 73% of Germans and 56% of Italians prefer not to do so.

The study also highlights that promotions are a fundamental element for European consumers. Ninety-four percent of respondents consider them an important factor in their purchasing decisions, with Italians (98%) and Spaniards (96%) valuing them the most. Additionally, 53% of Spaniards seek offers throughout the year, not limiting themselves to specific events like Black Friday or Cyber Monday.

A Trend That’s Here to Stay: Almost half of Spaniards (49%) do not expect an increase in their purchasing power for 2024. To cope with these challenges, 47% plan to limit their spending on decoration and furniture (41%), electronics (41%), and clothing (37%).

Lastly, sustainability is becoming an increasingly relevant factor for consumers. Only 9% of Europeans do not consider it when shopping. In Spain, 49% would be willing to pay more for sustainable or ethically produced products, a figure that rises significantly in Hungary (70%) and Germany (60%).

“In summary, the Spanish consumer of 2024 is brand disloyal, a lover of physical stores, receptive to personalization, and eager for offers. Brands that want to win their hearts will need to offer competitive prices, attractive in-store shopping experiences, and products that align with consumer values,” says ShopFully.

Source: Financial Food

According to a new forecast announced by WTO economists this Wednesday, April 10, global merchandise trade is expected to gradually recover this year following the contraction experienced in 2023, driven by the persistent effects of high energy prices and inflation. The volume of global merchandise trade should increase by 2.6% in 2024 and by 3.3% in 2025, after a 1.2% decrease recorded in 2023.

In the “Global Trade Outlook and Statistics” report, WTO economists indicate that inflationary pressures should ease this year, allowing real incomes to rise again, particularly in advanced economies, which will boost the consumption of manufactured products. The recovery in demand for tradable goods in 2024 is already clearly visible, with new export orders indices pointing to improved conditions for trade early in the year.

WTO Director-General Ngozi Okonjo-Iweala stated, “We are moving towards the recovery of global trade, thanks to the resilience of supply chains and the robust multilateral trade framework, which are essential for improving livelihoods and well-being. It is imperative that we mitigate risks such as geopolitical conflicts and trade fragmentation to maintain economic growth and stability.”

High energy prices and inflation continued to weigh significantly on the demand for manufactured products, resulting in a 1.2% decrease in the volume of global merchandise trade in 2023. The decline was greater in value terms, with merchandise exports falling by 5% to USD 24.01 trillion. The evolution of trade in the services sector was more encouraging: commercial services exports increased by 9%, reaching a value of USD 7.54 trillion, partially offsetting the decline in merchandise trade.

Import volumes decreased in most regions, but especially in Europe, where they recorded a sharp drop. The main exceptions were major fuel-exporting economies, whose imports were supported by strong export revenues, as energy prices remained high compared to historical levels. Global trade remained well above its pre-pandemic level throughout 2023. In the fourth quarter, its level was practically identical to that recorded in the same period in 2022 (+0.1%) and had only increased slightly compared to the same period in 2021 (+0.5%).

Downside Risks

Looking ahead, the report warns that geopolitical tensions and political uncertainty could limit the scope of trade recovery. Food and energy prices could again experience sharp rises due to geopolitical events. According to the report’s special analytical section on the Red Sea crisis, while the economic impact of Suez Canal disruptions resulting from the Middle East conflict has so far been relatively limited, some sectors (automotive industry products, fertilizers, and retail trade) have already been affected by delays and increased freight costs.

Additionally, the report presents new data indicating that geopolitical tensions have marginally affected trade but have not triggered a sustained trend towards deglobalization. Bilateral trade between the United States and China, which reached an unprecedented peak in 2022, grew 30% less in 2023 than it did in their trade with the rest of the world. Moreover, throughout 2023, global trade in non-fuel intermediate goods, which provides an idea of the state of global value chains, decreased by 6%.

Source: Financial Food

The turnover derived from the provision of storage, transportation, and distribution services linked to online sales operations experienced significant growth again in 2023, reaching €3.35 billion, an 8.1% increase compared to the previous year, according to the Sector Observatory DBK by Informa.

Although of lesser magnitude, there continues to be a significant surge in the value of services associated with e-commerce, further reinforced by the impact on logistics service prices due to the notable increase in costs. The number of online buyers reached 24.8 million in 2023, having increased by nearly 3% annually over the past two years. Thus, 56% of the Spanish population made online purchases.

The report also reveals that the number of companies dedicated to providing logistics and transportation services for e-commerce operations continues to increase, attracted by the significant growth of the business and the emergence of new needs, particularly in the last-mile sphere, despite the cessation of activity by a significant portion of the numerous parcel delivery companies. Furthermore, many of the major operators continued to acquire other companies in the sector, aiming to expand their territorial presence and complement their offerings with the addition of new services.

The high cost of home delivery for recipients, resulting from city congestion and the difficulty of finding them at home, continues to drive the implementation of extensive networks of collection points and automated lockers.

Despite the continued existence of a large number of competitors and the establishment of new small specialized companies, the degree of market concentration is increasing. The top five groups accounted for 45% of the market in 2023, while the combined share of the top ten increased to 63%.

The Sector Observatory DBK by Informa also points out that the logistics market for e-commerce could experience growth of around 5% annually in the period 2024-2025. This trend could result in a value of around €3.7 billion.

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Source: Financial Food

Over the past year, significant changes have occurred in purchasing habits, shopping baskets, and shopper profiles, impacting the dynamics of the consumer goods market in Spain. According to an analysis by in-Store Media, the close of 2023 shows a growth of 10.3% in the sector, driven by both price increases and positive demand in volume.

“This scenario has favored the advancement of private label brands, which reached a share of 49% in value and 58% in volume, driven by inflation and high prices,” the company notes. Among the different purchasing channels, large supermarkets stand out, accounting for over half of market sales and experiencing favorable growth of +12.6%. Additionally, regional supermarkets are gaining importance, accumulating 17% of the market share.

These market changes have directly impacted the composition of the shopping basket. Although the number of shopping baskets has remained stable, there has been an 8% increase in the average purchase ticket due to price increases. However, shopping baskets have tended to be smaller, showing an 11% year-on-year decrease. Furthermore, there has been a slight increase in the number of households exploring different chains when making their purchases.

These changes in purchasing habits have also shaped the profile of the current shopper. In search of the best value for money, shoppers have become more rational, homely, sustainable, healthy, and omnishopper-oriented. Thus, the new shopper prioritizes price and shows a preference for promotions.

Additionally, there has been an increase in the purchase of products intended for home consumption, such as dinners, parties, and celebrations, reflecting higher spending on home consumption. Furthermore, sustainability and health have emerged as two relevant factors in purchasing decisions, demonstrating consumers’ growing concern for these issues. Finally, the distinction between physical and digital environments is gradually fading, with 27.2% of shoppers purchasing both in-store and online.

Point-of-sale communication: a key medium to reach the new shopper

Impacting the new shopper at the point of sale becomes relevant to cover these new habits. Communication with the shopper becomes a key piece to adapt to this new reality: 70% of purchase decisions are made in-store, so brands must direct their efforts towards the point of sale to impact the shopper. Additionally, the point of sale is valued as the least intrusive medium, thus contributing to improving the shopper’s shopping experience, highlights in-Store Media.

Product innovation, promotional initiatives, and communication of sustainable and healthy practices become key elements to differentiate and capture the attention of shoppers.

It is in the physical store where brands find the opportunity to give visibility to their products and capture the consumer’s attention: seven out of ten shoppers discover product innovations in-store, promotional activations also have a significant impact, as price is a decisive factor for over 70% of shoppers when making purchasing decisions. Furthermore, for manufacturer brands, increasing communication in-store will be key to prevent private label brands from gaining more market share.

The results reflect that point-of-sale communication plays an essential role in strengthening brand awareness and increasing sales: it increases Top Of Mind by 54%, purchase intention by 44%, and sales by 19%. “In conclusion, the consumer goods market in Spain experienced growth in 2023 driven by changes in purchasing habits and shopper behavior. This dynamic scenario requires agile adaptation by brands to maintain their relevance and competitiveness, recognizing the importance of point-of-sale communication, which gains relevance as a fundamental medium for connecting with the shopper and responding to new trends,” concludes in-Store Media.

Source: Financial Food

The difficulties faced by brand manufacturers due to the emergence of private label brands from distributors, which already account for 48% of spending in the Spanish shopping basket, have revolutionized the way the former manage and exploit their own brand.

“When managing multiple brands within the same company, they must be given hierarchy according to their significance,” explains Juan Viñas, Marketing advisor at Jvst Grow.

Until recently, this brand architecture seemed very clear. For example, Pepsico acted as a house of brands for Lay’s and Alvalle, among others; in the same way that Pascual grouped brands such as Bezoya or Bifrutas, or Casa Tarradellas acted as a branded house for all its products, regardless of category (fuet, espetec, bacon, pizza, etc.).

However, the emergence of private label brands has blurred the hierarchy and provided new nuances; especially in the case of Mercadona, the leader in Spanish distribution, which prides itself on hiring top-tier manufacturers to produce its private label products.

In fact, the chain chaired by Juan Roig, like other retailers, operates as a house of brands for its various private label brands: Hacendado, Deliplus, Bosque Verde, etc.

But not only that. The Valencia-based chain has managed to make manufacturer brands act as endorsers of its private label brand. For example, Viñas points out, Casa Tarradellas sells espetec under its own brand, the Original, outside of Mercadona, while in Mercadona it sells espetec under the Hacendado brand, Extra edition, and yet the brand of the Catalan manufacturer appears on the back label. “A manufacturer brand endorses a private label brand,” emphasizes Viñas.

The same happens in the case of snacks and potato chips from Munchos and Hacendado, which feature the Pepsico brand on the back (and recently, they are even offered in Lay’s boxes).

An exception to this model is Pascual, which has recently begun manufacturing private label brands for Mercadona in vegetable drinks, cocoa shakes, and coffee-flavored soy milk, but has chosen not to lend its brand: the label of these products only shows Gelasa Alimentación S.L., a subsidiary of Pascual. The manufacturer based in Aranda de Duero prefers, for the moment, not to act as an endorser.

Source: Financial Food

The consumption and global trade of wine also show signs of certain stagnation or slight decline, particularly in volume. This is not the same for all categories, colors, exporters, or markets, but there is a general trend towards lower quantities, higher prices, and possibly towards fresher products on one hand and higher-end products on the other. This is a global situation that clearly affects the Spanish wine sector.

These are some of the main conclusions of the economic report of the sector included in the Activity Report of the Spanish Wine Market Observatory (OeMv) 2023, which reviews what happened in the wine sector last year.

Thus, the report recalls that, according to the OIV, the production that could be estimated at the end of 2023 for that year was about 244 million hectoliters, substantially lower than the 258 million of the previous year and, of course, the peak of 295 million in 2018; and even below the minimum of the last 30 years, which occurred in 2017, with 246.7 million hectoliters. This is a historically low and very erratic wine production in recent years (largely due to harvest variations in Spain) that faces a much more difficult-to-estimate global consumption, which in 2022 was 232 million hectoliters and declining from 247 million in 2017. “Little wine produced worldwide, for a relatively scarce and declining consumption,” highlights the report, which points out that “it is not surprising that this progressive decrease in global consumption also leads to a stagnation or slight decline in trade in terms of volume.”

Despite the increasing globalization of consumption, global wine exports have not exceeded 110 million hectoliters and have remained between 100 million and 110 million hectoliters for over 10 years, leaving behind a long period of constant growth. Not only has global wine export volume stopped growing, but it has been decreasing for two years, and in 2023, in the year-on-year estimation until November, it fell by 6.5%, to less than 99 million hectoliters.

However, if global wine consumption and exports are stagnant in volume (no more liters or bottles are consumed or marketed), their value has continued to advance in recent years, although now their progression has also been twisted. Global wine exports in euros have more than doubled since the 2009 recession, from less than 18 billion euros to over 36 billion euros, despite the 4.1% decrease recorded last year. Driven by both inflation over the past two years and previous trends towards “premiumization” or price increases of wines, global prices explain this substantial improvement in the value of exports, compared to the stagnation of their volume. In 14 years, and despite the setback of COVID19, prices have comfortably exceeded 3.60 euros per liter, with a 2.6% growth also in 2023.

Large differences by categories

This evolution of global wine trade, however, presents significant differences by product category, the report points out. Thus, sparkling wines have slowed down since late 2022. They decline in volume in 2023, although they remain quite stable in value at around 8.9 billion euros, of which almost half (4.2 billion euros) are Champagne. Similarly, on a completely different scale, the bag-in-box (BiB) format wines, between 2 and 10 liters in capacity, fall in liters but remain very stable in euros, after a long period of growth. And it is the non-sparkling packaged wines, in containers of up to two liters in capacity, that show a more worrying trend. They have been falling in volume since 2021, increased this decline in 2023 by -8.4%, and now also fall in value by -5.4%, which is a significant percentage, although half of the decline experienced in euros by bulk wine in the same year (-10.4%).

“Almost all categories of wines exported worldwide are falling, especially in volume, but in this case too, differences can be seen by types of wine and particularly by their color. Although the detail of the tariff headings available for all world countries only allows us to compare by color in European countries, this limited vision also shows us a significant progression of white wines, compared to reds and rosés. Taking as a reference the evolution since 2017 (the last significant variation of the Combined Nomenclature), red and rosé wines from the EU have fallen by 17% in volume, while whites have increased by 10%. This data, like many other clues we can extract from the evolution of consumption and global wine trade, shows a trend change that seems to be consolidating over time, towards fresher and easier-to-drink wines, compared to the more classic ones,” explains the OeMv’s work.

Differences also between countries

From the evolution of the different global exporters, it seems that these new trends are being better countered by some than by others. Chile, the US, and Australia are, among the nine main global exporters, the ones suffering the biggest drops in the past year 2023 (by -22.9%, -17.2%, and -13.9% respectively in value). All nine main exporters lost sales last year (with data until November) in liters, and only Germany managed to increase its turnover. But among the major players, France loses more than Italy, and Spain falls in value more percentage-wise than France, but not in volume. Again, and despite the widespread poor data last year, it is Italy that seems to be better defending itself.

Bad data from global wine exporters, because markets are also falling, although they do so differently. Among the largest, the US, UK, and Germany, the last two suffer slight losses in 2023 (-2.5% and -6.5% respectively in euros), but it is the US, the largest world importer of wine and engine of global trade growth after the pandemic, which is the most worrying. The US suffered a significant drop during the second half of 2023 of around 1 billion euros, from over 7.2 billion euros in the year-on-year to March, to 6.264 billion euros in November. A drop in the whole year of more than 10% that worries could extend into the year 2024 and be due to a change in trend in American consumption, which has alarmed the expert analysts of that country.

Among the other main importers, China continues its decline, which has been going on since 2018 and continues, although in 2023 it seems somewhat softer. Canada becomes the fourth largest wine importer in the world, but it may be due to both the dynamism of the market itself and the increasing role it is playing as a re-exporter of wine to the United States. Japan also shows significant growth in 2022 and 2023, as do the Netherlands, Belgium, and Switzerland. Also noteworthy is the recovery of Russia as a wine importer, despite the war declared in Ukraine for much of the year 2023, although it entered losses in the second half.

Finally, regarding Spain, the report indicates that a production, estimated in November 20231 at just 31.9 million hectoliters, historically low and even lower than that of 2012, is added to stocks at the beginning of the campaign of 38.5 million hectoliters (slightly higher than those of the previous campaign) to give total estimated availabilities of just over 70 million hectoliters, a figure only comparable to that of 2012 and much lower than the average of 80 million hectoliters of the previous five campaigns.

“There is, therefore, not much wine, nor a feeling of excess: neither for what has been produced in this past year, nor for what was left in stocks at the end of the last campaign. But there is also not a booming demand that would allow for the price increase that could be expected from a short harvest,” it highlights.

Source: Financial Food

2023 has been a favorable year for the Spanish organic market, which reached €3 billion, as revealed by the “Annual Report 2024: Organic Consumption and Production” from Ecovalia. The report highlights the upward trend of the organic sector in both consumption and production.

In this regard, the report emphasizes that Andalusia and Catalonia are the Spanish autonomous communities that stand out in organic consumption. Globally, the United States leads with €58.566 billion, followed by Germany (€15.310 billion). It is noteworthy that European countries lead per capita spending globally, with Switzerland ranking first (€437), followed by Denmark (€365), and Austria (€274). In Spain, spending amounts to €64 per capita per year.

In the organic shopping basket, the average price of animal-derived products has reached €7.82, and that of plant-derived products is €2.60. Organic foods are more stable against inflation than conventional ones, as the price of conventional foods has grown 23% higher than organic ones.

An interesting fact is that Spaniards prefer large retailers to buy organic products (50%), compared to specialized stores (34%) and other channels (16%).

Production Increases by 60% in the Last Decade

Looking at the surface area data, Spanish production has grown by over 60% in the last decade. Europe accounts for 18,450,355 hectares or 19% of its surface area. Ahead, only Oceania with 55%.

Spain already has 2,675,331 hectares, with Andalusia (50%), Castilla-La Mancha (16%), and Catalonia (9%) maintaining their leading positions nationally. Regarding the Utilized Agricultural Area, Spain has reached 11%.

Regarding crops in our country, 29% of Spanish nuts are organic, 16% of vineyards, or 10% of olive groves. The area of nuts reaches 290,086 hectares, followed by olive groves (262,379 hectares), and cereals (242,721 hectares).

As for industrial activities, which have grown by 23% in the last five years, Spain has 10,959 companies. 85% are in plant production compared to 15% in animal production.

Álvaro Barrera, president of Ecovalia, explained that “the organic sector continues on the path of growth despite challenging times. Encouraging consumption is key to further developing organic production in Spain. We must work to increase per capita consumption of organic foods among Spaniards and work to ensure that consumers recognize the organic label, the green leaf, as the paradigm of food sustainability, backed by an official system.”

Source: Financial Food