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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 3.4% in 2021, followed by Otsuka Holdings Co Ltd with a share of 2.6% and Hipp GmbH & Co Vertrieb KG with a share of 2.4%. 
  • Year-on-year value growth is expected to hit 4.7% in 2022, before stabilizing around 3.5-4.0% over the coming years through 2026.

 

  • Organic products in Spain represent a market size of US$385.9 million, corresponding to 0.6% of the global market in 2021 with a per capita expenditure of US$8.15.
  • Demand for organic products is expected to witness positive growth over the forecast period 2021-2026, with a CAGR of 4.0% for the period.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in Spain recorded current value growth of 5.4% in 2021, reaching a value of US$386 million.
  • Organic packaged food grew by 7.8% in 2021 to register US$316.7 million, driven by strong performance across many key categories including baby food, dairy, and sauces, dressings and condiments.
  • Organic beverages struggled somewhat in 2021, declining 4.5% to stand at US$69.2 million.
Market Trends
  • The Spanish government is actively seeking measures to reduce the consumption of sugary beverages due to rising obesity concerns, especially among children. The government approved a rise in VAT (value-added tax), from 10% to 21%, for sugary and sweetened beverages in January 2021. Furthermore, the government has announced restrictions on advertising such products. Tightening regulations on soft drinks have raised the awareness level, and consumers are becoming more conscious of the sugar content of the products they consume. 
  • As Spanish consumers are concerned about their health and wellbeing, they are increasingly looking for packaged food products with less sugar, salt and fat. Health concerns raised by higher sugar intake will accelerate the growth of a new range of sugar-free/reduced sugar products and beverages during the forecast period. Furthermore, the rising awareness level will stimulate the search for organic products. Categories such as naturally healthy bottled water and naturally healthy RTD tea will also gain momentum.  
  • The government’s efforts are a clear message for food and beverage manufacturers to shift towards reduced/zero-sugar products. Though the government’s focus is currently on sugary drinks, rising awareness levels might impact consumers’ behaviour and consumption patterns to opt for more healthy products.
Competitive Landscape
  • Private labels dominate the organic segment in Spain. Overall, private labels had a market share of 25.2% in 2021 – leading both categories, organic packaged food (with 25.7% of market share) as well as organic beverages (22.8% of market share).
  • Otsuka Holdings Co Ltd is the leading brand manufacturer in organic packaged food with a value share of 3.2% in 2021, closely followed by Hipp GmbH & Co Vertrieb KG (with 3% of market share in 2021) and Soria Natural SA (with a market share of 2.5% in 2021).
  • East West Tea Co LLC is the leading player in the organic beverages market; the company had a market share of 19.2% in 2021, followed by J García Carrión SA (market share of 3.2% in 2021) and Hassia Gruppe (market share of 2.5% in 2021). 
  • Due to the extensive portfolio and wide availability of its naturally healthy products, Mercadona SA remained a leader in the naturally healthy beverages category. Similarly, Centros Comerciales Carrefour SA is expected to have the advantage of having a vast portfolio and broader availability of organic products. Cía Servicios de Bebidas Refrescantes SL, a leader in better for you beverages, grew its retail value sales and share in the category in 2021 – the growth is due to the positive performance of the company’s brands in better for you non-cola carbonates and tonics. 
  • Organic beverages is expected to show strong growth potential for the forecast period 2022-2026. Therefore, major soft drink manufacturers such as Coca-Cola, Red Bull, Nescafé and Font Vella are set to focus on tapping into this segment. These brands have a low market share in the category. However, they are in a solid position to utilise their extensive distribution network, advertising budgets, and low pricing strategy to win the market share.
Prospects And Growth Opportunity
  • Increased VAT in the off-trade channels is mounting pressures on manufacturers to reduce the sugar content in their products, as rising awareness among consumers concerning the association of sugar consumption with obesity and other health-related issues. Therefore, carbonates manufacturers are facing a drop in sales volumes in 2021, and so are shifting towards reduced-sugar products that are calorie-free or low-calorie alternatives to regular products. The aim is to reduce sugar content by an additional 10% between 2020 and 2025. Among the key players in Spain, Cía Servicios de Bebidas Refrescantes focuses on adding new reduced sugar products to its portfolio. Whereas PepsiCo will reduce the average level of added sugar by 25% by 2025 and 50% by 2030. 
  • Nectars (25-99% juice) is affected by the government’s decision of increasing VAT and new regulations on advertising when targeting the young population. Pressures are further mounted by the fresh juice category, as Spanish consumers perceive fresh juice as a healthier alternative than nectars. The fresh juice category is gaining ground in foodservice, retail channels and at-home options. To cater to the changing consumer preferences, manufacturers are expected to increase fruit content in nectars and reduce sugar content and sweeteners. As a result, the share of reduced sugar/sugar-free products is expected to grow strongly in nectars in Spain.
General Health And Wellness Trends
  • Covid-19 has bolstered health and wellness trends in Spain as a growing number of local consumers perceive the consumption of better for you, fortified/functional, free from, naturally healthy and packaged food and beverages as healthy. Spaniards are also willing to spend more on organic products due to rising awareness of health-related benefits and growing concerns over sustainability and the environment. The organic category, supported by retail penetration, is expected to grow in Spain. Therefore, the cultivation and supply of organic products will increase during the forecast period.
  • Covid-19 has re-defined another trend to focus on and take preventive measures to improve general health and immunity. The trend is expected to benefit the health and wellness category. For example, the number of organic and fortified/functional products and reduced or 0% sugar-added options is predicted to grow strongly during the forecast period. 
  • Spanish consumers increasingly perceive tea as a healthy beverage, and its penetration among a younger population is set to rise significantly. The premiumisation trend is also anticipated to develop in both health and wellness coffee and tea, with new fruit and plant mixes, exotic flavours, and products with different origins and specialities introduced into the market.
General Economics And Demographic Landscape

Economy: 

  • Real GDP growth rebounded to 5.0% in 2021, following a 10.8% contraction in 2020. The economy is set to expand 5.1% in 2022.
  • Private final consumption grew by 7.9% in 2021 and is forecast to increase by 5.0% in 2022. For the period 2020-2030, the private final consumption is expected to rise by 2.6% annually, recording a cumulative increase of 29.9%.

 

Population demographics: 

  • The Population of Spain was recorded at 47.4 million in 2021, increasing from its 2000 level of 40.5 million. Growth is expected to continue, with the population reaching 48.2 million by 2030. 
  • The country is witnessing a rapid ageing process within its workforce, and overall population, with the median age in 2021 recorded at 44.7 years and reaching 48 years by 2030. 
  • Population under 14 is gradually declining and stood at 14.3% of the total population in 2021. It is further expected to decrease to 12.9% in 2025.

 

Income & expenditure: 

  • The savings ratio in Spain was recorded at 16.2% of disposable income in 2019, with the indicator expected to rise to 16.8% in 2022.
  • Consumer expenditure per capita was recorded at US$17,576 in 2021, with an increase of 4.9% expected in 2022. For the period 2020-2030, consumer expenditure is expected to witness a cumulative growth of 27.9%, averaging 2.5% annually, with spending on miscellaneous goods and services and clothing and footwear expected to drive consumer expenditure.
  • Disposable income per capita in 2021 was US$19,841; it is expected to grow by 5.7% to reach US$20,966 in 2022. For the period 2020-2030, the indicator is expected to rise by 2.7% annually, recording a cumulative increase of 30.2%.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

CAGR
(18-21)

CAGR
(22-25)

Health & wellness products consumption [1]

USD million

15,012.0

15,439.2

16,506.4

17,054.0

17,518.7

18,002.5

18,449.3

18,894.7

4.3%

2.6%

Organic packaged food and beverages consumption

USD million

299.6

323.8

366.2

385.9

403.9

420.5

435.9

452.3

8.8%

3.8%

Organic packaged food consumption

USD million

243.1

263.4

293.7

316.7

332.9

346.3

358.2

370.3

9.2%

3.6%

Organic beverages consumption

USD million

56.5

60.4

72.4

69.2

71.0

74.1

77.7

82.0

7.0%

4.9%

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

%

2.0

2.1

2.2

2.3

2.3

2.3

2.4

2.4

-

-

 

[1] Health and Wellness Definition: 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. The above definition and more can be referenced from the definitions table at the end of the report.

Economic And Demographic Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

Total Population

million

46.7

46.9

47.3

47.4

47.5

47.6

47.7

47.8

% Middle and upper class of total population

%

28.1

28.1

28.1

28.1

28.2

28.3

28.3

28.4

% population aged 65+

%

19.2

19.4

19.6

19.9

20.2

20.5

20.9

21.4

% population aged 0-14

%

15.0

14.8

14.5

14.3

13.9

13.6

13.2

12.9

% Population with higher education degrees

%

28.5

28.8

29.0

29.2

29.3

29.5

29.6

29.7

Average number of children per household

children

0.4

0.4

0.4

0.4

0.4

0.4

0.4

0.4

GDP per capita

USD per capita

30,505.5

31,360.7

28,039.0

29,787.7

31,313.0

32,467.1

33,187.8

33,667.8

Consumer expenditure per capita (US$)

USD per capita

18,412.5

18,634.0

16,288.0

17,576.4

18,439.9

19,104.3

19,480.5

19,793.8

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

USD per capita

2,301.3

2,333.4

2,448.1

2,304.5

2,321.5

2,378.2

2,427.1

2,466.2

 

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2021)

1

Madrid

6.8

Top cities by population (2021)

2

Barcelona

4.9

Top cities by population (2021)

3

Valencia

1.7

Top cities by population (2021)

4

Seville

1.5

Top cities by population (2021)

5

Bilbao

1.0

 

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2021)

1

Mercadona SA

Top grocery retailers by sales (2021)

2

Carrefour SA

Top grocery retailers by sales (2021)

3

Schwarz Beteiligungs GmbH 

Top grocery retailers by sales (2021)

4

Auchan Group SA 

Top grocery retailers by sales (2021)

5

Eroski, Grupo

 

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$)

2021

Spain

1

Organic Carrots Fr/Ch

129,918

2021

Spain

2

Organic Tomato Sauce Ex Ketchp

99,553

2021

Spain

Total

Total Organics*

229,471

2020

Spain

1

Organic Tomato Sauce Ex Ketchp

88,367

2020

Spain

Total

Total Organics*

88,367

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

 

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 2018 – 2021 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 2018-2021 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.

Agency Contact Information
Ministry of Agriculture, Fisheries and Food
https://www.mapa.gob.es/en/alimentacion/temas/produccion-eco/default.aspx

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard:

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

This consolidated version repeals and replaces previous organic regulations and contains the basic legislative act plus amendments and corrections that set the rules on organic production and labeling of organic products: EU 2018/848 (pdf in English) 

Key secondary acts not included in consolidated EU 2018/848 include: 

  • Retroactive recognition for the purpose of conversion, the production of organic products and information to be provided by EU countries: EU 2020/464 (pdf in English)
  • Conditions for authorization and lists of authorized products and substances for use in organic production: EU 2021/1165 (pdf in English)
  • Supplemental rules on the official control, traceability and mass balance checks for operators and groups of operators: EU 2021/771 (pdf in English)

A full list of basic legislative act and secondary acts are available here.

Date of Implementation: 1992

Regulation and/or Standard Scope:

EU standards cover crop, livestock, processing, and certification of groups of operators. 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, sprouted seeds, chicory heads, wine, mushrooms, and salt. 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. EU requires that imported products must be from countries that have been recognized by the EU (third-countries) and certified by recognized control bodies (certifiers); or countries with bilateral equivalency arrangements (Canada, Japan, Korea, New Zealand, U.S.); or countries with equivalency agreements (Chile, Switzerland, UK).

List of third countries and the list of control authorities and control bodies recognized for the purpose of importing organic products into the EU: EU 2021/2325 (pdf in English)

Requirements have been established for importers, operators responsible for the consignments, first consignees and consignees for the import of organic and in-conversion products into the EU.

Documents and notification required EU 2021/2307 (pdf in English)

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.

Exports from the U.S. to EU must adhere to the EU procedures and require an EU Certificate of Inspection (COI). A USDA-accredited certifying agent must complete an electronic COI through the European Union's Trade Control and Expert System (TRACES) link before the product leaves the U.S. Certain edits to the COI may only be made within 10 days of issuing the original COI.

EU Trade in Organics

Certification and Accreditation

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

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

The EU has unified the control systems that Member States and control bodies implement for investigations, non-compliance, mediation, testing, reporting, exclusion from organic sale, emergency treatments and appeals.  Required reports, records and certificates are submitted in electronic format through the use of the Organic Farming Information System.  

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

Requirements for recognition of control authorities and control bodies: EU 2021/1698 (pdf in English)

Use of Organic Farming Information System and templates for annual reports: EU 2021/1935 (pdf in English)

Record keeping and declaration requirements from operators and groups of operators EU 2021/2119 (pdf in English)

List of control authorities and control bodies for equivalence 

Control bodies in the European Union

Additional Information

Catalonia, an autonomous region in Spain, has developed guidance on the areas of the EU regulations that are unclear. 

FiBL Country reports
U.S. International Trade Administration

USDA's GAIN Report How COVID-19 is Changing Consumer Behavior (2021)
USDA's GAIN Report Spain Food and Agricultural Import Regulations and Standards - Narrative (2020)
USDA's GAIN Report Exporter Guide (2021)
USDA's GAIN Report Spain Food Processing Ingredients (2021) 
USDA's GAIN Report Retail Foods (2021)
USDA's GAIN Report Spanish Retail and Distribution Sector Update (2020)
USDA's GAIN Report Food Service - Hotel Restaurant Institutional (2020)
USDA's GAIN Report FAIRS Export Certificate Report (2021)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2021)

USDA’S GAIN Report Update on Changing EU Import Conditions for Composite Products (2022)
USDA’S GAIN Report COVID-19 Boosts Organic Food Sales in the EU (2022)
USDA’S GAIN Report European Commission Launches Public Consultation on the Revision of EU Food Labeling Requirements (2022)
USDA’S GAIN Report New EU Labeling Rules for Wines (2022)
USDA’S GAIN Report Continuing Good Prospects for US Organic Exports to the EU (2021)
USDA’S GAIN Report New EU Organic Regulation Entering Into Force in 2021 Regulatory Update (2020)
USDA’S GAIN Report EU Launches Consultation on Future Organics Action Plan (Sept. 2020)
USDA’S GAIN Report Food Labeling Initiatives in the EU Farm to Fork Strategy (2020)
USDA’S GAIN Report Pesticides Initiatives in the EU Farm to Fork Strategy (2020)
USDA’S GAIN Report Good Prospects for US Organic Exports in the EU (2020)
USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2021)
USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Export Certificate Report Annual (2021)
USDA’s GAIN Report EU Food and Agricultural Import Regulations and Standards - Certification (2020)