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Quick Stats

Quick Stats

Organics Dashboard From Passport

  • East West Tea Co LLC leads the organic segment in Spain with a value share of 4.8% in 2019, followed by Hipp GmbH & Co Vertrieb KG with a share of 3.1% and Otsuka Holdings Co Ltd with a share of 2.2%.
  • Year on Year value growth is expected to increase in 2020 to about 5.5% but then decline, followed by fluctuations in the short term until stabilizing at around 5.0% in 2024.

  • Organic products in Spain represent a market size of US$269 mn, corresponding to 0.5% of the global market in 2019 with a per capita expenditure of US$5.74.
  • Demand for organic products is expected to witness positive growth over the forecast period 2019-2024, with a CAGR of 4.9% for the period to ultimately recording a market size of US$341.3 mn in 2024.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in Spain recorded current value growth of 7.2% in 2019, reaching a value of US$269 mn.
  • Growth in organic packaged food was led by organic sweet biscuits, recording a current value increase of 36.0% in 2019.
  • Organic non-cola carbonates witnessed the highest growth within organic beverages in 2019, with value growth of 15.0%, despite a marginal decline in average unit price.
Market Trends
  • Consumers in Spain are increasing their spending on organic beverages, especially in categories like juices and carbonated drinks. A rise in disposable income and health-conscious consumer base is helping drive demand, with consumers opting to pay a higher price for products that are free of additives and are healthier in comparison to non-organic variants. The higher disposable incomes have also helped drive sales of non-cola carbonates; however, non-cola carbonates still comprise only a small value share of organic soft drinks, which, represents about a fifth of organic beverages.
  • Among categories of organic packaged food, demand is driven by environmental and animal welfare concerns, as well as increasing product availability. Currently, Spain has a relatively low per capita consumption rate compared to other countries in Western Europe, indicating significant room for improvement.
Competitive Landscape
  • Organic baby food is a category witnessing significant development with the entry and growth of global brand Nestlé through new launches such as Nidina Premium bio formula milk and a completely organic range of feeding products, under the NaturNes Bio sub-brand. Furthermore, to remain competitive in organic packaged food, Nestlé is expected to continue product developments over the forecast period 2019-2024, with innovations in numerous organic categories such as meat and vegetables, fruit purées and dry baby food.
  • In the overall packaged food category, the leading value share of 6.8% is maintained by private label Carrefour Bio, offering over 150 products, followed by the Carrefour SA private label operated by Centros Commerciales Carrefour SA with a value share of 6.6%. Despite the availability of major branded products, the private label continues to grow due to retailers' commitment to providing easy access to a wide range of organic products. Additionally, leveraging the popularity of private label products, discounters such as Aldi have also witnessed a rising demand for their organic offerings under the GutBio private label. The success and future potential of private label products have inspired other retailers to introduce/promote their organic private label offerings as seen in the case of Spar with Spar Natural and El Corte Inglés with La Biosfera.
  • With organic beverages also showing strong growth potential for the forecast period 2019-2024, major brands of soft drink manufacturers such as Coca-Cola, Red Bull, Nescafé and Font Vella are focusing on launching organic offerings. While currently, these brands have a low share of organic beverages, it is expected to increase on the back of their extensive distribution networks, competitive prices and investments into communication campaigns to promote their overall as well as organic products.
Prospects And Growth Opportunity
  • The favorable economic outlook for Spain is expected to help drive demand for organic products, with consumers recording an increase in disposable income. Demand for organic products is expected to continue to rise, as more consumers are health-conscious, environmentally concerned, and have a preference for products that are sustainably manufactured. While traditionally, organic products in Spain were mostly in the fresh food category, packaged food is gaining significant share, with organic recording an increasing share of value sales over the forecast period 2019-2024.
  • The growing focus on nutrition is helping organic products witness demand in categories such as breakfast cereals and baby food. Consequently, major players such Kellogg’s have launched new products under the biological/superfood-orientated W K Kellogg brand including the organic WK cereals made with superfoods, ingredients such as granola, almonds and wholegrain wheat, plant-based proteins and without added sugars.
  • Overall, organic non-cola carbonates are expected to witness a value CAGR of 9.1% for the forecast period 2019-2024, supported by manufacturers' activities. Moreover, organic 100% juice is anticipated to witness a strong performance, with a value CAGR of 7.8% for the forecast period 2019-2024. The popularity of organic juices stems from consumers' perception of health attribute, and the environmentally friendly packaging of the products, which align with consumers' requirements for sustainability.
General Health And Wellness Trends
  • With the growing focus on the “war on sugar”, consumers have become increasingly aware of the need to lower their sugar intake, leading to a preference for reduced sugar and naturally healthy products. Manufacturers are responding to this growing focus with new product development. For instance, major companies are reformulating their recipes to lower sugar content or launching new reduced or sugar-free variants and introducing smaller packages to help consumers better manage their sugar intake. Key new product development in this vein is Cía de Bebidas PepsiCo’s 7-Up Free (reduced sugar non-cola carbonates) in May 2019.
  • The increasing incidence of food intolerances and allergies underpins the strong performance of free from gluten, lactose and dairy. While this is most visible in retailing, there is also a growing health awareness in foodservice establishments, with several operators aiming to cater to their customers’ demands and gain a competitive edge.
General Economics And Demographic Landscape

Economy:

  • The economy of Spain is expected to witness a slowdown for 2020, with real GDP seeing a growth of 1.5%, post gains of 2.0% in 2019. Inflation in 2019 was recorded at 0.7%, with an increase of 0.9% predicted for 2020.
  • Private final consumption grew by 1.2% in 2019, driven by domestic demand. This growth is expected to reach 1.4% by 2020 as a slowdown in employment, and wages are expected to be offset by an increase in household savings.
  • The economic growth is expected to decelerate, with real GDP growth remaining at 1.5% in 2021, but falling to 1.2% per year by 2027.
     

 Population demographics:

  • The population of Spain was recorded at 46.9 million in 2019, increasing from its 2000 level of 40.5 million. Growth is expected to continue, with the population reaching 48.7 million by 2030.
  • The country is witnessing a rapid ageing process within its workforce, and the population overall, with the median age in 2019 recorded at 44 years and reaching 47.7 years by 2030.
  • Spain has also witnessed a decline in fertility rates, recorded at 1.3 births per female in 2019. This indicator is expected to rise to 1.4 births per female by 2030.
     

Income & expenditure:

  • The savings ratio in Spain was recorded at 6.5% of disposable income in 2019, with the indicator expected to rise to 6.7% by 2020.
  • Consumer expenditure per capita was recorded at US$17,639 in 2019, with an increase of 0.9% expected in 2020. For the period 2020-2030, consumer expenditure is expected to witness a cumulative growth of 12.8%, averaging 1.2% annually, with spending on miscellaneous goods and services and clothing and footwear expected to record the highest consumer expenditure.
  • Disposable income per capita in 2018 was US$18,234, which grew by 0.9% to reach US$19,875 in 2019. For the period 2020-2030, the indicator is expected to rise by 1.2% annually, recording a cumulative increase of 12.4%.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

CAGR
(16-19)

CAGR
(20-22)

Health & wellness products consumption

USD million

13,698.6

14,002.1

14,265.4

14,654.8

15,007.0

15,387.3

15,764.2

2.3%

2.5%

Organic packaged food and beverages consumption

USD million

218.8

232.9

250.7

269.0

284.1

296.9

311.0

7.1%

4.6%

Organic packaged food consumption

USD million

171.5

182.1

196.7

211.2

223.2

232.9

243.9

7.2%

4.5%

Organic beverages consumption

USD million

47.2

50.7

54.1

57.8

60.8

64.0

67.0

7.0%

5.0%

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

%

1.6%

1.7%

1.8%

1.8%

1.9%

1.9%

2.0%

-

-

Economic And Demographic Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

Total population

million

46.4

46.5

46.7

46.9

47.1

47.3

47.5

% Middle and upper class of total population

%

26.5

26.7

26.8

26.7

26.8

26.8

26.8

% Population aged 65+

%

18.7%

19.0%

19.2%

19.4%

19.7%

19.9%

20.2%

% Population aged 0-14

%

15.1%

15.1%

15.0%

14.8%

14.6%

14.4%

14.2%

% Population with higher education degrees

%

27.9

28.2

28.5

28.8

29.0

29.2

29.3

Average number of children per household

children

0.4

0.4

0.4

0.4

0.4

0.4

0.4

GDP per capita

USD per capita

26,849.6

27,955.3

28,843.8

29,732.7

29,604.1

30,050.4

30,373.0

Consumer expenditure per capita (US$)

USD per capita

16,097.4

16,866.8

17,382.5

17,713.3

17,884.6

18,042.3

18,222.4

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

USD per capita

2,058.6

2,069.3

2,108.3

2,142.2

2,123.1

2,141.8

2,154.5

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2019)

1

Madrid

6.8

Top cities by population (2019)

2

Barcelona

4.9

Top cities by population (2019)

3

Valencia

1.7

Top cities by population (2019)

4

Seville

1.5

Top cities by population (2019)

5

Bilbao

1.0

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2019)

1

Mercadona SA

Top grocery retailers by sales (2019)

2

Carrefour SA

Top grocery retailers by sales (2019)

3

Auchan Group SA

Top grocery retailers by sales (2019)

4

Distribuidora Internacional de Alimentación (Dia) SA

Top grocery retailers by sales (2019)

5

Schwarz Beteiligungs GmbH

United States Department Of Agriculture Global Agricultural Trade System Data

Top 5 Export Commodities To Spain

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2019

Spain

1

Organic Asparagus Fr/Ch

134,527

2019

Spain

2

Organic Tomato Sauce Ex Ketchp

27,461

2019

Spain

3

Organic Peppers Fr/Ch

13,973

2019

Spain

4

Organic Vinegar and Substitutes

9,922

2019

Spain

5

Organic Pears Fresh

8,084

2019

Spain

Total

Total Organics*

196,567

2018

Spain

1

Organic Lettuce Not Head Fr/Ch

373,785

2018

Spain

2

Organic Tomato Sauce Ex Ketchp

35,149

2018

Spain

3

Organic Vinegar and Substitutes

19,447

2018

Spain

4

Organic Asparagus Fr/Ch

4,600

2018

Spain

5

Organic Coffee Roast Not Decaf

4,195

2018

Spain

Total

Total Organics*

437,176

2017

Spain

1

Organic Lettuce Not Head Fr/Ch

449,943

2017

Spain

2

Organic Tomato Sauce Ex Ketchp

36,539

2017

Spain

3

Organic Coffee Roast Not Decaf

10,020

2017

Spain

4

Organic Milk

3,825

2017

Spain

Total

Total Organics*

500,327

2016

Spain

1

Organic Tomato Sauce Ex Ketchp

16,974

2016

Spain

2

Organic Cherries Fresh

10,475

2016

Spain

3

Organic Coffee Roast Not Decaf

10,031

2016

Spain

Total

Total Organics*

37,480


Note : Total organics is the sum of all exports in a particular year  
Definitions

Definitions

Term

Definition

Health and Wellness

Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products.

Organic packaged foods and beverages

This category includes packaged food & beverages that are certified organic by an approved certification body. Organic production is based on:

• A system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers.
• Organic food & beverages are minimally processed without artificial ingredients, preservatives or irradiation.
• The use of GMOs (Genetically Modified Organism) is prohibited. “Certified Organic” means the item has been grown according to strict uniform standards that are verified by independent state or private organizations.
• Depending on the country, such products are called ‘organic’, ‘biological’ or ‘ecological’: For organic products to be included under Euromonitor definitions, the organic aspect needs to form part of positioning/marketing of the product. This is an aggregation of organic baby food, bakery, confectionery, dairy, ice cream, oils and fats, ready meals, rice, sauces, dressings and condiments, snack bars, soups, spreads, sweet and savory snacks and other organic food.

Note that fresh food products or individual ingredients are not included in this definition.

Compound annual growth rate (CAGR)

The compound annual growth rate (CAGR) is the average annual growth rate over a specified period of time. For instance, the CAGR consumption of from 2016 – 2019 will be the average growth rates across these three years.

USDA GATS data clarification

The data presented in table 2.4 represents the dollar values of the top 5 organic commodities as well as of the total organic exports of the trade partner for the period 2016-2019 as per the United States Department of Agriculture’s Global Agricultural Trade System, a database consisting of international agricultural, fish, forest and textile products trade statistics dating from the inception of the Harmonized coding system in 1989 to present.

Policy Information

Policy Information

Government Agency(s) / Competent Authority

Authorized Government Agency(s):

European Union (EU) Member States retain the authority to determine additional requirements for production within their country. They can also determine exceptions due to catastrophic circumstances, but cannot restrict access to products in compliance with EU regulations. In addition, the EC delegates most authority for the administration of organic programs to the Member States.

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard:

The European Union has an Equivalency Agreement with the United States.

General requirements; repeal of previous organic regulations: EC 834/2007 (.pdf in English)

Detailed rules on production, labeling and control including its first amendment on production rules for organic yeast: EC 889/2008 (.pdf in English)amended by (EU) No 1358/2014 (see below).
Regulation (EU) 2019/2164, which amends Regulation (CE) 889/2008, changed some of the lists of inputs allowed in organic agriculture and processing.

Rules concerning imported products: EC1235/2008 (.pdf in English)
Feburary 2013 amendment concerning imported products: (EU) No 125/2013 (.pdf in English)

Rules on organic aquaculture and seaweed production - Amendment in 2009 - implemented in 2010: EC 710/2009 (.pdf in English) 
Organic aquaculture and seaweed production updates (EU) No 1358/2014 effective January 1, 2015.

Detailed rules on organic wine: Regulation No 203/2012 (web; in English)

Date of Implementation: 1992

Regulation and/or Standard Scope:

EU standards cover crop, livestock and processing. Farm and handling plans are required, as well as detailed record keeping and detailed livestock feed standards.  Specific standards are included for aquaculture, seaweed, yeast, bees, and mushrooms. Criteria for determining allowed materials include consistency with the objectives and principles of organic farming, and materials must be of plant, animal, microbial or mineral origin. Synthetic substances, however, may be used when they replicate the natural sources and when they are approved for organic production in the EU.

Imported Products

EU requires that imported organic products meet EU standards. Non-EU organic products must include country of origin labeling if they wish to use the EU organic logo. Use of the EU organic logo is not required for products from outside the EU.

Beginning February 3, 2020, port of entry health authorities will only endorse a certificate of inspection if the certifier issued it prior to export. Certain sections of the certificates (boxes 13, 16, and 17) may be filled in with provisional information, since certifiers can not verify all of the data before the product is exported. The provisional information must be confirmed/updated within 10 days, and before the certificate can be endorsed at the port of entry.

Certification and Accreditation

Certification:

The EC requires organic certification for all those involved in production and handling, including importers. EC requires ALL processing operations to be certified, even if those products are below the 95% threshold for the "Organic" label.

EC delegates the authority for investigations, non compliance, mediation, and testing, as well as reporting, exclusion from organic sale, emergency treatments and appeals to the Member States in accordance with their respective control system plans.

The EC allows private sector standards for the product categories, such as cosmetics and textiles, which are not fully regulated by the EC.  In the EU certifiers (control bodies) can require additional organic crop, livestock and processing standards in association with the use of their certification seal.

List of control authorities and control bodies for equivalence 

Control bodies in the European Union

Accreditation:

Each EU Member State accredits certification bodies.

Additionally, the EU vests the authority for exchanging information on "infringements and irregularities" (enforcement) to certifiers through the Member State control systems as the vehicle to remove non-compliant product from the marketplace.  However, it is not clear how, or when, an organic certificate can or will be revoked.

In addition to the EC organic regulations for certification and accreditation procedures, the requirements of EN 45011 and ISO Guide 65 for accreditation must be met.

Additional Information

Catalonia, an autonomous region in Spain, has developed guidance on the areas of the EU regulations that are unclear. More: Press release on Catalonia organic regulations interpretations (Web site; in Catalan)

USDA's GAIN Report Spain Food and Agricultural Import Regulations and Standards - Narrative (2020)
USDA's GAIN Report Exporter Guide (2020)
USDA's GAIN Report Spain Food Processing Ingredients (2019) 
USDA's GAIN Report Retail Foods (2019) 
USDA's GAIN Report Food Service - Hotel Restaurant Institutional (2019)
USDA's GAIN Report FAIRS Export Certificate Report (2019)


http://www.organic-europe.net/country-info.html

USDA’s GAIN Report Spain Exporter Guide (2015)
USDA’s GAIN Report Spain Food and Agricultural Import Regulations and Standards - Narrative (2015)

USDA’S GAIN Report New EU Organic Regulations for Early 2018 (2017)
USDA’S GAIN Report Electronic Certificate of Inspection Required for EU Organics Trade (2017)
USDA’S GAIN Report Good Prospects for US Organic Exports in the EU (2020)
USDA’S GAIN Report U.S. Organic Food Exporters Set to Double Sales to EU (2019)
USDA’s GAIN Report Plenty of opportunities for U.S. organics in the EU market (2015)
USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2020)
USDA’s GAIN Report EU Food and Agricultural Import Regulations and Standards - Certification (2020)
USDA’S GAIN Report EU-28 Food and Agricultural Import Regulations and Standards - Narrative (2017)
USDA’s GAIN Report EU-28 EU-U.S. Organic Trade Update - January 2014