Upcoming Trade Shows in Spain for Food & Drink

Spain’s food and drinks industry currently experiences sudden shocks caused by consumer habits and a spike in inflation. These economic shifts are what’s causing serious fluctuations. One of the most notable changes is the economic impact on household budgets. Escalating food prices are compelling Spaniards to allocate a larger share of their income to food expenses. A recent IPSOS survey revealed that almost two-thirds (63%) of respondents noted an increased expenditure on food over the past five years. Furthermore, more than half (53%) anticipate this trend to continue, which echoes similar sentiments in Belgium and the Netherlands. In response to rising costs, consumers are visibly modifying their shopping habits to make the most out of their budget. Poultry and frozen meat are gaining traction within the meat category as they offer cost-effective alternatives to pricier beef. In the dairy sector, value-added products like quark and specialty cheeses enjoy increased demand compared to previous staple items. Fruits and vegetables face a different trajectory. Elevated prices for fresh produce are prompting consumers to shift towards processed options, resulting in a decline of around 4% in sales for these categories in Spain. The economic dynamics of consumer choice are reshaping the landscape for various food products. Despite these challenges, private consumption has emerged as a growth driver for Spain's economy in the second quarter of 2023. Eased price pressures and rising nominal wages have positively influenced household purchasing power. However, anticipation of tighter financing conditions and weaker labor market dynamics has somewhat tempered consumption in the latter half of 2023. Looking ahead to 2024, the prospects brighten with expectations of increased consumption. As nominal wages outpace inflation, Spain saw an average wage growth of 4% in 2023 and foresees an additional growth of 3% in 2024, providing a potential boost to consumer spending in the food and beverage sector.