The number of companies in Spain involved in the production and marketing of nuts and snacks is currently estimated to be about 470 with close to 6,100 workers employed. According to DBK, a subsidiary of Informa D&B (Group CESCE).
The trend towards concentration of supply in the sector has increased in recent years as a result of the deterioration of economic activity, the cessation of activity of small-sized companies and the purchase and merger undertaken by leading operators.
Thus, major multinational corporations and large Spanish companies with a strong brand image and national scope, are strengthening their position in the sector. In 2011 the top five operators brought together 40% of the total market share which stood at 51% when considering the top ten.
Business Sector
The market for snack nuts ended the year 2012 with a value of 1,895 million euros, representing an increase of 1.3% compared to 2011.
The dynamism in launching varieties of higher unit value and the move to the final sale price of the increase in raw material costs enabled this evolution, despite a moderate decline in the volume of consumption.
By segment, sales of snacks were more buoyant, recording an in-crease of 2.4% in value, reaching 635 million euros, representing 33% of the total market.
The segments of nuts and chips, meanwhile, stood at 690 and 570 million euros respectively and accounted for in both cases growth rates below 1%.
The increased bargaining power of organized food distribution is strengthening competition in the sector, reflected in a progressive increase in the market penetration of retail brands.
In the described context, the strategies of brand-leading operators are relying mainly on product innovation, diversification of their bids and the internationalization of their activities. Brazil, Russia, India, China, North Africa and Eastern Europe are foreign markets that have a higher growth potential for Spanish companies.
Source: RRHHpress
