Market Trends of Spain Pouch Packaging Industry
Supermarkets to Push the Demand for Convenient Pouch Packaging
- With Spain's improving macroeconomic landscape, companies in the packaged food sector are pivoting from larger, cost-effective pack sizes to smaller, more refined formats that promise higher profit margins.
- With a rising demographic of consumers aged over 40, producers are pivoting their strategies. They are turning to vintage designs to tap into nostalgia and introducing convenient formats, like plastic pouches, to cater to this group's needs.
- According to a study by Caixa Bank in February 2024, in Q3 2023, Spain's total gross disposable income (GDI) surged by 10.6% year-on-year, starkly contrasting the 2.8% inflation rate and a 1.5% household rise. This robust growth signals a notable recovery in purchasing power. Over the initial three quarters of 2023, disposable income saw a substantial 11.4% year-on-year increase. An increase in disposable incomes would push the need for packaged products in the country.
- In May 2024, the German supermarket chain Aldi announced plans to expand in Spain substantially. The company has ambitious plans, eyeing nearly 40 more outlets by the end of 2024. This aggressive expansion aims to culminate in nearly 500 stores by the end of 2024, marking a remarkable growth trajectory of 150 stores in just four years. The expansion of supermarket chains is expected to push the pouch packaging market for various end-user products.
- Supermarket stores and online platforms are among the primary businesses promoting the need for pouch packaging. According to Mercadona, the annual sales value of the supermarket chain in 2023 was EUR 34,124 million (USD 36,930.7 million), up from EUR 26,745 million (USD 28,944.8 million) in 2020. A rising demand for convenience is steering these changes. This surge is attributed to their convenience, both for consumers and manufacturers. Consumers appreciate the flexibility of these packages, allowing them to squeeze out products and save space quickly.
Understand The Key Trends Shaping This Market
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Food Industry to Widely Use Pouch Packaging
- Pouches are evolving significantly, driven by sustainability concerns, advancements in innovative packaging technologies, and printing. Brands opting for biodegradable and compostable materials showcase their environmental commitment and resonate with eco-conscious consumers. These pouches and innovative packaging technologies elevate user experiences and give businesses crucial data.
- The surge in their popularity can be linked to the escalating demand for convenient, on-the-go food and beverage options. With their lightweight and resealable nature, pouches cater to this lifestyle. Widely embraced in the food and beverage realm, pouches are prevalent in pet food, baby food, and liquid packaging (tea, coffee, and juices).
- Their appeal lies in features like easy opening, user-friendly designs (including zippers and varied shapes), and the convenience of being reclosable. Their chemical inertness makes them a staple in food, beverage, pharmaceuticals, pet care, and cosmetics.
- The country also consumes a large volume of meat. In 2023, meat and meat product consumption surged by 2.7%, totaling 2,215 million kg, marking a significant rebound from the downturn in 2022. These findings were underscored and unveiled at the AECOC Congress in February in Lleída. Notably, the upswing was spearheaded by fresh meat, witnessing a notable 3% surge in demand.
- Intercarn, the premier showcase of Spanish meat products and derivatives, was set to headline the Food and Hostelco trade fair in March 2024 at Fira Barcelona's Gran Vía venue. Already a dominant force in meat exports, Spain will spotlight its offerings to key markets like China, France, Portugal, and Japan.
- In 2023, according to infoRetail Maganize, Mercadona registered a share of 27.6% in Spain, taking the top position. followed by Carrefour, Lidl, Grupo Dia and more. Mercadona dominated the Spanish supermarket landscape, commanding a market share of over 25%. Following closely, Carrefour, the French multinational retailer, secured the second spot with a 7.5% share.
