The bakery and pastry market - Spain

1.2 The global market is growing

In ****, global sales of bakery and pastry products amounted to an estimated $***.* billion. The world market for bakery and pastry products is expected to grow at a CAGR of *.*% over the period between **** and **** period, reaching an estimated market size of $***.* billion [***].

Global market size for bakery products World, ****-****, in billions of US$ Source: ****

This growth in the market size is particularly driven by the bread segment, which is expected to have a slightly higher growth rate of *.*% (***), to reach $***.* billion by ****. On the other hand, the cakes/pastries segment is expected to have a slightly lower CAGR of *.*% until **** [***].

1.3 A mature Spanish market

The Spanish bakery and pastery market is one that has already reached its maturity stage and has even seen a slight decrease in its activity in recent times.

The size of this market varies, depending on the scope that is considered. For instance, if we consider the figures provided by ASEMAC (***), we get a market size of €*.** billion in **** for the production of frozen bread and pastries.

Turnover of the frozen bread and pastries market Spain, ****-****, in millions of euros Source: ****

As can be seen from the graph above, following a period of fast growth of the market between **** and ****, the turnover of the sector stagnated somewhat between **** and ****, before dropping sharply in **** (***).

Moreover, the graph above also shows the significance of bread in this segment, which accounts for the larger share of the turnover. However, in recent years, the pastries segment has been growing at a much faster rate (***), which shows its growing importance for this sector.

In terms of volume of production of frozen breads and pastries, the trend is similar to that of the value of the production. Following a strong growth until ****, it seems as if the market stagnated before falling in **** due to the pandemic. ...

1.4 The impacts of the Covid-19 pandemic

As it can be seen from the section *.* of this study, bakery and pastry activity was significantly impacted during the Covid-** pandemic, with production dropping in ****.

On the other hand, as it can be seen from the graph below, consumption of bread during the first half of **** was actually higher than for the same period in ****, showing that the Spanish were consuming more bread during the lockdown period [***].

Consumption of bread during the year Spain, ****-****, in millions of kg Source: ****

2.1 The decreasing consumption

Since ****, the consumption of bread in Spain has been following a negative trend. Between **** and ****, the average spending of consumers on bread has dropped by nearly €** per persoon and the amount of bread consumed dropped by *kg per person [***].

Consumption and spending on bread Spain, ****-****, in euros and kilograms Source: ****

If we break down the consumption by type of bread, we see that artisanal fresh bread is actually the type of bread that suffered the most within this period of time, with its consumption index decreasing from *** in **** to **.* in ****. On the other hand, industrial dry bread actually gained in popularity within the same time frame.

Evolution of consumption of bread, by type Spain, ****-****, index base *** in **** Source: ****

Consumption of pastries

The trend for the consumption of pastries in Spain is somewhat different to that of the consumption of bread. In fact, the change in consumption is not that big - **.*kg consumed in **** and **.*kg in ****. Moreover, it seems as if consumption has been fairly stable over the last couple of years [***]. 

Consumption and spending on pastries, cookies and cereals Spain, ****-****, in euros and kilograms Source: ****

It is important to note that the figures above also include ...

2.2 Who are the biggest (and smallest) consumers?

In Spain, the biggest consumers of bread are the retired population. In fact, compared to the national average of **kg of bread consumed per person, the consumption from the retired population was **.*% higher than the national average. In second place are the independent adults (***) and households of * person [***].

Biggest consumers of bread in Spain (***) Spain, ****, in % Source: ****

In regards to the population groups that consume the least amount of bread, we find that couples with small children and children under the age of * have the smallest consumption compared to the national average (***) [***]. 

Smallest consumers of bread in Spain (***) Spain, ****, in % Source: ****

Consumption of pastries

For pastries, the trend is similar, with the older people in the population being more prone to consume pastries than the younger population. However, an interesting thing to note is how people of a higher social class tend to consume more pastries than people of a lower social class (***) [***].

Consumption per capita of pastries by age Spain, ****, in kilograms Source: ****

Consumption per capita of pastries by social class Spain, ****, in kilograms Source: ****

2.3 Consumption patterns

During the year, there seems to be a pattern when it comes to the consumption of bread in Spain. Consumption seems to be at its highest level in the first quarter of theyear, while in the Summer months consumption seems to drop to its lowest point. Consumption seems to pick itself up back towards the end of the year. 

Consumption of bread during the year Spain, ****-****, in millions of kilograms Source: ****

In regards to pastries, the trend seems to be the same as for bread, with consumption being at its lowest levels in the Summer

Consumption of pastries during the year Spain, ****-****, in millions of kilograms Source: ****

3.1 Distribution channels for bread and pastries

In Spain, bread and pastries are by far mostly distributed by supermarkets. Focusing firstly on bread, we see that supermarkets accounted for more than **% of the sales and specialised outlets (***) accounted for nearly **% [***]. 

Distribution channels of bread Spain, ****, in % Source: ****

In regards to pastries, the dominance of supermarkets is even clearer, representing approximately */* of the total sales of these types of products. Specialised channels (***) only account for only *% of the total sales. 

Distribution channels of pastries, cookies and cereals Spain, ****, in % Source: ****

Please note that the values used for the figures above also include the distribution of cookies and cereals (***).

3.2 The players in this market

To understand what are the players operating in the bakery and pastry market in Spain, we will use the aforementioned CNAE codes:

CNAE **** - Manufacture of bread and fresh bakery and pastry products CNAE **** - Retailers of bread and bakery products and pastry products in specialised shops

The market for the companies operating the CNAE code **** is quite big, given how it groups players participating in all sorts of activities relating to the production of all kinds of bakery and pastry products. In ****, the combined revenue for the *,*** companies operating in this sector was €*.* billion. The top * companies in this sector account for just under **% of the total revenue. Please note that the company "Bimbo" appears twice in the top *, as there are * different branches of this company that are considered.

Market share of companies operating under CNAE code **** Spain, ****, in % Source: ****

As it can be seen from the graph above, the market for CNAE **** is highly fragmented.

In regards to the companies operating under the CNAE code ****, the market is even more fragmented. There were *,*** companies operating under this code in ****, which made a combined revenue of €*.** billion. The biggest company in this sector, Macxipa, only contributed for less than ...

3.3 Consumption by autonomous community

In terms of consumption of bread by communities, it is the North-West region of Spain that appears to have the highest per-capita consumption of fresh and frozen bread. On the flip side, the regions of Madrid and Canary Islands have the lowest consumption.

This is shown in the map below, where autonomous communities with higher consumption are shaded in darker colours.

Consumption of fresh/frozen bread per capita by autonomous community

Spain, ****, in consumption (***) per capita

Source: ****

For the consumption of pastries, it seems as if it is the Central region of the country that concentrates the highest consumption per-capita. Meanwhile the autonomous communities of La Rioja and Canary Islands have the lowest per-capita consumption of these products.

Consumption of pastries per capita by autonomous community

Spain, ****, in consumption (***) per capita

Source: ****

4.1 The bread and pastries consumed

The bread that is consumed in Spain can be split into the following categories:

Fresh/frozen bread Wholemeal bread Normal fresh bread Industrial bread Industrial fresh bread Wholemeal industrial bread Normal industrial bread Industrial crustless bread Industrial enriched bread Dry industrial bread

Given the scope of this study, we will disregard all types of industrial bread and focus solely on the fresh/frozen bread segment. Within this segment, normal fresh bread accounts for **% of the total amount of fresh/frozen bread consumed in the country (***).

Distribution of fresh/frozen bread consumption Spain, ****, in % Source: ****

In regards to the pastries, the offer is divided into two subsegments:

Bulk pastries Packaged pastries

Here, the dominant product category for consumption are the packaged pastries. In fact, they account for **% of the pastries consumed (***) [***].

Distribution of pastry consumption Spain, ****, in % Source: ****

4.2 Comparing the prices

In ****, the average price of fresh/frozen bread in Spain was of €*.**/kg - *% lower than the **** price. Among the different distribution channels, discount stores were where this type of bread could be found for the cheapest price, while traditional bakeries tended to have the more expensive prices.

Average price of fresh/frozen bread by distribution channel Spain, ****, in euros per kilogram Source: ****

For pastry products, the average price in Spain in **** was of €*.**/kg - up *.*% from ****. The distribution channel that has the highest price on average is the traditional pastry shops, at an average price of €*.**/kg. On the other hand, discount stores offer the lowest average prices (***). 

Average price of pastries by distribution channels Spain, ****, in euros per kilogram Source: ****

5.1 Regulations

Each category of bread displayed must be accompanied by a label (***), attached to the base of the rack where the bread is displayed. This label must contain the following information:

Exact denomination of the category of bread; Weight in grams for breads sold by the piece; Selling price (***); The selling price per weight for breads sold by piece (***).

In addition, all bakeries must have a poster titled "Bread Prices" showing all the different prices of breads offered for sale which includes their precise name, weight, price per piece, price per kilogram.

Moreover, for more information on other regulations specific to bakeries and pastries in Spain, the AESAN association goes into detail here.

6.1 Segmentation

• Bimbo
• Monbake
• Cerealto
• Ingapan
• Macxipa
• Europastry España
• Repsol