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03 April 2006
Madrid, Spain
ISales of mass consumption products for the home continue to grow significantly in Spain. Packaged food sales values for 2005 were 6.8% higher than the previous year, while Houseware and Personal Care grew 5.8%, and fresh products went up by 4.6%.
Total expenditure on basic consumer products for the home was 53,645 million euros, 5.7% higher than in 2004. 43.6% of this went on Packaged Food, 40.8% on fresh products and the remaining 15.6% on Houseware and Personal Care products.
“Price increases on these basic consumer products for the home were lower than the general inflation for the country,” said J. Luis García Fuentes, General Manager ACNielsen Spain. The total 6.5% increase in the value of sales on Packaged Food and Houseware and Personal Care can be broken down into 3.8% growth in volume of sales and a 2.6% increase in prices.
Growth in Self-Service for Packaged Foods
The trends of the last few years in the Packaged Foods market continued, with a 4% increase in the number of supermarkets and hypermarkets, along with a 3% decrease in the number of supermarkets smaller than one hundred square metres and traditional shops. The model showing the strongest growth was supermarkets of between 1,000 and 2,499 square metres, the total number of which is now 2,098, up 10% from 2004. Hypermarket numbers also increased, by 4% to 379. Supermarkets of 400 to 999 square metres and 100 to 399 square metres both increased by 3%, to 4,397 and 7,591 respectively. Discount shops, such as Dia, Plus, Lidl and Aldi, now have a total of 3,415 outlets and represent 24% of all self-service establishments.
The rise in supermarket outlets means that this type of shop now makes 66.7% of all packaged food sales, 1.3 market-share points higher than the previous year. Alongside this increase, hypermarkets, which make 23.2% of sales of these products, and traditional shops, which represent 18.1% of sales, saw their market shares fall.
An Ever-Growing Number of Self-Service Houseware and Personal Care Shops
The total number of shops selling Houseware and Personal Care goods in Spain is 17,037. The number of self-service establishments in this market is also growing, while traditional houseware and personal care shops are in decline. In the last year, the number of self-service houseware and personal care shops increased by 6% to 4,521, with the number of traditional shops falling by 8%, although, with a total number of 12,516, they still far outnumber self-service shops.
42.2% of houseware and personal care sales took place in supermarkets, a channel which increased by 1.1 market share points compared to the previous year; 33.4% took place in shops specialising in these products, a channel which also increased its share, by 0.4%. Hypermarkets accounted for 20.5% of sales, slightly lower than in 2004. Also down slightly were traditional food shops, which represented 4% of sales of these products.
Having said this, there are major differences between sales of houseware and cleaning products on the one hand and personal care and hygiene products on the other. 57.5% of houseware and cleaning product sales were made in supermarkets, 22.9% in hypermarkets, 12% in specialist shops and the remaining 7.5% in traditional food shops. On the other hand, the main channel for sales of personal care and hygiene products was shops specialising in houseware and personal care, which took a hefty 47% of the total, followed by supermarkets, with 32.4% and hypermarkets with 18.9%. Traditional food shops were left with1.7%.
Tobacco Sales in Hospitality Establishments Fall
In the hospitality market, the most significant change is the 5.9% fall in the volume of sales of tobacco. This has not been influenced by the new law on tobacco consumption, since it had not yet come into force. Sales volumes for alcoholic drinks also fell: by 1.8% for those with high alcohol content and by 1.6% for those with low. By contrast, the volume of sales for non-alcoholic drinks increased by 1.7%. Over all, the hospitality market saw a 1.6% fall in volume of sales.
“About two thirds of sales of drinks are made through food shops, and this market share increased by two percentage points last year to reach 67% of the total, with 33% being made in hospitality establishments,” said J. Luis García Fuentes. It is clear that this is primarily due to non-alcoholic drinks, since food shops sell 78% of non-alcoholic drinks, 44% of low-alcohol drinks and only 32% of high-alcohol drinks. As for the hospitality establishments, their greatest market share is in high-alcohol drinks, of which they make 68% of sales, compared to 56% for low-alcohol drinks and 22% for non-alcoholic.
By looking at individual products, we see even more clearly how a higher alcohol content leads to more sales being made in hospitality establishments. Bars, cafés, hotels, restaurants and nightclubs account for 75% of the total volume of sales for rum, 65% for whisky, 59% for wines with ‘DO’ (guaranteed origin and quality) status, 60% for beer; 25% for cola drinks, 19% for mineral water and 13% for juices.
Plasma and LCD Flat-Screen TVs
2005 was also a good year for the electrical appliances market, which grew by 5.9% from the previous year to 6,636 million euros. The greatest percentage, 30%, was for image and sound products, with sales up by 6.6%. Whiteware came next with a 29.7% market share and 7.4% growth. Telephony represented 15.2% of this market, although it had only grown by 0.5% from 2004. Air conditioning accounted for 14%, increasing its sales by only 0.9% in 2005 after several years of strong growth. And the final 11.2% was for small electrical appliances and other products, with an increase of 6.8%.
Looking at it by product, the top performers in the electrical appliances market were undoubtedly LCD and plasma flat-screen TVs, with sales growth of 231% over the previous year, partly motivated by a fall of 23% in the average price. Sales of portable air conditioning appliances also grew, by 69%, benefiting from a 34% decrease in prices. The product with the third highest sales growth was DVC video cameras, up 50% from 2004, accompanied by a 32% decrease in prices.
Other electrical appliances showing strong growth in sales volumes were front-loading washing machines with more than 850 revolutions per minute, with 23%, frost-free fridges, of which 17% more were sold, Espresso machines, up 17%, and upright freezers, which sold 16% more than the previous year. And these four examples were not associated with such strong price reductions as the earlier ones – prices were stable or fell by 1 to 4%.
The Retail Brand Continues Growing
Yet again this year, the retail brand showed remarkable growth. Sales for 2005 were 7,477 million euros, 23.8% of the total for packaged food and houseware and personal care, 1.6 percentage points higher than the previous year.
“Almost one euro in every four spent by Spaniards on packaged food goes to the retail brand, and one in five to houseware and personal care. In all categories, the market shares of these brands are still growing,” pointed J. Luis García Fuentes.
Tinned food was once again not only the food category in which the retail brand achieved the largest market share, but also the one in which it maintained the strongest growth, reaching 39.5% of total sales, almost three percentage points higher than the previous year. Next came frozen foods, in which it now has a market share of 32.8%, then milks and milkshakes with 30.8%, dry food at 27.9%, delicatessen and cheeses at 25.2%, dairy products at 24.8% and drinks, for which the retail brand makes 13% of all sales.
In houseware and personal care, the retail brand represents 20.3% of total sales, almost half a percentage point higher than last year. Its share is much higher for houseware and cleaning products, where it now accounts for 33.4% of total sales, more than two percentage points higher than it managed in 2004, than for personal care and hygiene, in which it has a market share of 11.4%, increasing 1.2 percentage points over last year.
New Panel of Fresh Products in Self-Service
One of the most significant new features in market analysis in the ACNíelsen Yearbook is the new panel for measuring fresh products in hypermarkets and supermarkets, one of the largest regular expenditure items in Spanish homes, representing 21,264 million euros and 40.8% of total expenditure on basic products. Its growth was 4.6%, lower than that achieved by packaged food and houseware and personal care.
Spaniards still buy fresh products in traditional and specialist shops, which make 51% of sales, although 39% are by now made in supermarkets and the remaining 10% in hypermarkets. So supermarkets have a greater share in fresh products than in packaged products, using their proximity to consumers and their purchasing frequency to gain a competitive advantage over the hypermarkets.
The fresh products for which the hypermarkets enjoy the largest market share is fish, with 23.9% of the total, then meat with 20.9%, and fruit with 20.6% of total sales. On the other hand, its share falls for products purchased more regularly, such as bread, at 13.8%, and eggs, at 14.6%.
Meat represents more than one third of total expenditure on fresh products, with 35.7% of total expenditure, followed by fish, which accounts for 19.6%, vegetables at 18% and fruit at 17.3%. The remainder is shared between 6.2% for bread and 3.2% for eggs.
Home Video Falls 12% in Value Compared to 2004
The ACNielsen 2006 Yearbook also includes the principal data for the leisure and entertainment markets in Spanish homes, such as sales of movies, video games and books. Within movies, the trend of previous years was fully consolidated, with the DVD medium coming to represent practically the total figure for movie sales, at 95.3%, leaving the remaining 4.7% for VHS video. Given that its price is also higher, DVD represented 97.2% of the total value of these sales. It is important to note that movie prices fell significantly, and even though 8% more units were sold than in 2004, the total value of this market fell by 12%.
Within the video games market, the majority of sales were for console video games, representing 73.8% of the unit volume and 84.2% of the euro value; the remainder was for PC games, which generally sell for a lower price. The trend indicates much higher growth in console video games, the market for which increased 28.3% in volume and 24.8% in value compared to the previous year. As for PC games, they were up 5.5% in volume and 4.1% in value compared to 2004.
In the book best-seller lists in Spain, Dan Brown scooped the first three places, “The Da Vinci Code” holding on to the first place for the second consecutive year, followed this time by “Angels and Demons” and “Deception Point”. There were no big surprises in the top ten list, as six of the books had already been there the previous year. “La sombra del viento/The Shadow of the Wind” by Carlos Ruiz-Zafón stayed in the top ten, taking fourth place in 2005; and Julia Navarro built on her success with “La Hermandad de la Sábana Santa/The Sisterhood of the Holy Shroud” by adding another work, “La Biblia de Barro/The Mud Bible,” which is at number seven. Others carried over from the 2004 list are “El último catón/The Last Cato,” by Matilde Asensi and “The Pillars of the Earth,” by Ken Follet, which has been a top seller for several years. The remaining items in the list are “Pasión India/Indian Passion” by Javier Moro and “The Historian” by Elizabeth Kostova. Just like last year, five books by Spanish authors feature among the top ten best sellers, and we also see substantial similarity in the subject matter of several of the most successful books - novels with pseudo-historical and crime themes, with no non-fiction works among the best sellers on this occasion. The ten best-selling books took 19% of total book sales in Spain, and for the 20 best-selling books the percentage goes up to 25.8%.
The ACNielsen 2006 Yearbook
Since it first came out in 1986, the ACNielsen Yearbook has been the essential guide to developments in mass consumption product markets in Spain.
The ACNielsen 2006 Yearbook analyses trends in the sectors of Mass Consumption, Electrical Appliances, Hospitality, Pharmacy and Leisure during the past year, studying the over-all development of the market and the sales of each one of the principal products which constitute regular household expenditure, covering both packaged food and houseware and personal care, and also, starting from this issue, fresh produce. The yearbook also analyses the number of establishments, the retail of sales by ACNielsen areas, and the consumption of products in the home through consumer panels.
“The ACNielsen 2005 Yearbook was produced through comprehensive monitoring of sales in establishments throughout Spain through retailer panels (using Scantrack) and consumption in Spanish homes using the Homescan panel” explained J. Luis García Fuentes. ACNielsen, the world leader in market research, information and analysis of consumer products and the service industry, continuously monitors and analyses real sales data from supermarkets, hypermarkets and specialist shops for the principal mass consumption sectors.
The data collected by ACNielsen provides very precise information on the development of each market, in terms of both sales and the actual prices at which each product is sold in the various establishments.
NOTE
For further information or specific product data, or to clarify any point made, please contact Elena Alonso on +34 91 377 72 00, or visit the website at www.acnielsen.com.
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About ACNielsen
ACNielsen, a VNU business, is the world's leading marketing information provider. Offering services in more than 100 countries, the unit provides measurement and analysis of marketplace dynamics and consumer attitudes and behavior. Clients rely on ACNielsen's market research, proprietary products, analytical tools and professional service to understand competitive performance, to uncover new opportunities and to raise the profitability of their marketing and sales campaigns.
About VNU
VNU is a global information and media company with leading market positions and recognized brands in marketing information (ACNielsen), media measurement and information (Nielsen Media Research) and business information (Adweek, Billboard, The Hollywood Reporter, Computing, Intermediair).
VNU is active in more than 100 countries, with headquarters in Haarlem, the Netherlands and New York, USA. The company employs nearly 41,000 people. Total revenues were EUR 3.5 billion in 2005. VNU is listed on the Euronext Amsterdam (ASE: VNU) stock exchange. For more information, please visit the VNU web site at www.vnu.com.
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