The spirits market - Spain

The global spirits market has been experiencing robust growth, with Asia-Pacific leading over half of the market sales and strong momentum. Despite a 33% sales decline in Spain in 2020 due to COVID-19-induced bar and nightclub closures, the industry rebounded in 2021. Household demand in Spain showed a tendency towards in-home consumption with a -8.9% volume decrease from 2020 to 2021 but higher than 2019 levels. Internationally, Spain holds a trade surplus of €150 million in 2021, with the UK being the largest import source.

Regulations in Spain are governed by both EU and national laws, with the country boasting 19 protected geographical indications. The market is heavily dominated by international giants like Pernod Ricard, with local sales in Spain reaching €290 million in 2021. Innovation in spirits is trending toward health-conscious products, with non-alcoholic versions gaining popularity. Out-of-home consumption in Spain largely occurs in bars, accounting for 30% of these establishments' revenues from spirit sales in 2020.

Trends and Dynamics of the Spirits Market in Spain

Spain's spirits market witnessed significant fluctuation due to the impact of the health crisis. Subsequent recovery saw a resurgence in sales through hospitality channels and tourism, although figures still lagged behind pre-2019 levels. Notably, the fall in sales affected various spirit categories differently, with vodka, gin, and rum experiencing the sharpest declines, whereas brandy, liqueurs, and whisky demonstrated a degree of resilience. Despite the dip, household demand for spirits showed a complex pattern, with overall consumption volumes reducing by approximately 10% between 2020 and 2021. However, indicating a shift in consumption patterns possibly tied to the Covid-19 crisis. Gin, liqueurs, and whisky retained their status as the most popular spirits in Spain, with gin and rum showing an upward trajectory in consumption over the long term compared to other categories like brandy and whisky, which saw declines. From a socioeconomic perspective, the middle classes were responsible for most of the spirits demand, but interestingly, the lowest and highest socioeconomic segments consumed above the national average. Older consumers, particularly those above 50, formed the majority of the spirits consumer base, and family status analysis revealed that singles and childless couples were the primary market segments for this industry.

In terms of distribution, supermarkets were the preferred purchasing venues for Spanish households, accounting for over half of the spirits sales. Geographically, regions like the Balearic Islands, Catalonia, La Rioja, and Cantabria exhibited higher per capita spirits consumption, as opposed to areas like Navarre which exhibited much lower consumption levels. Spain's international trade in spirits revealed a positive shift, with the country experiencing a trade surplus, notably exporting to a diverse set of countries with destinations like the Philippines and Germany as prominent markets. Remarkably, Spain is a significant player in the spirit's trade, being the third EU country with the highest number of protected geographical indications. Pricing trends showed a cyclical nature with spikes during the festive season. In 2021, the average price for a liter of spirits dipped slightly compared to the preceding two years. Regulations within the EU and nationally have been pivotal in ensuring the authenticity and quality of spirit drinks, with Spain having several protected geographical indications like Brandy de Jerez and Orujo de Galicia, which together account for a substantial portion of the national production.

Prominent Spirits Industry Players Shaping the Market Landscape

The spirits market is home to a host of influential players, each with its unique portfolio of brands and strategic approaches that keep the industry dynamic and competitive. Let's delve into the profiles of some of the key companies that are major contributors to the shape and direction of the spirits sector as we know it today.

• Pernod Ricard is a titan in the world of spirits, boasting an extensive range of popular brands across various spirit categories. This French company is known for its innovation and global footprint, making it a significant force within the industry.
• Zamora is a family-owned company that has carved its niche in the market by focusing on high-quality liqueurs and wines. Despite its smaller size relative to some competitors, Zamora has established a strong presence, particularly in its home market of Spain.
• Osborne, another Spanish powerhouse, has been a longstanding player with deep roots in the production of brandies and fortified wines. Osborne's iconic bull logo is an emblematic symbol across Spain, representing a legacy intertwined with the nation's history and culture.
• Maxxium brings to the table a consortium approach, acting as a distributor for a broad selection of internationally renowned spirits brands. This strategy allows them to offer a diversified portfolio, catering to various tastes and preferences.
• Diageoe is one of the most diverse and expansive spirits companies globally, with a vast product line that includes many of the world's top-selling brands like Johnnie Walker and Smirnoff. The British company is a leader in both innovation and distribution, influencing the market on a global scale.
• Varma is a distributor that manages a sophisticated portfolio of international and local spirits, along with wines and champagnes. Their strategic relationships with various brands enable them to be an important conduit in the Spanish market.
• Bodegas Fundador takes pride in being the first bodega in the Jerez region, a storied producer of sherry and brandy. Their products are steeped in tradition yet remain relevant and beloved in the modern market.
• Bacardi is synonymous with rum, and for good reason. The family-owned company, originating from Cuba, has grown to become one of the largest privately-held, family-owned spirits companies in the world, with a portfolio that extends well beyond rum.

Inforamtion

• Number of pages : ~ 40 pages
• Format : Digital and PDF versions
• Last update : 22/02/2023

Summary and extracts

List of charts presented in this market study

• Spirits sales trend
• Local sales of the world's leading spirits companies
• Sales trends in spirits manufacturing
• Change in spirits sales
• Change in consumption by beverage
• Breakdown of revenues by type of spirit
• Breakdown of spirits sales volume by product
• Breakdown of volumes by distribution channel
• Breakdown of spirits consumption in volume by socio-economic category
• Breakdown of quantities consumed by age group
• Breakdown of quantities consumed by family status
• Origin of spirits imports
• Destination of spirits exports
• Balance of trade trends in the spirits market
• Breakdown of imported spirits by product type
• Breakdown of spirits exports by product type
• Average consumer price of spirits
• Breakdown of spirits production by geographical appellation
• Percentage of innovative products displayed on shelves
• Additional profit based on product positioning
• Spirits consumption by value in bars