Spain consumer
See also: our page about Spain
The number of households in Spain stood at just over 15 million in 2005, up by 30% from
1990, driven by the growing number of divorces, the rise in the number of single-person
residencies, greater life expectancy and increasing immigration. Most households comprise
two people (4.6 million households, up 5% between 2004 and 2005 alone). This is mainly
due to the increase in married or co-habiting couples taking longer to have children and
also the longer life expectancy of couples whose children have moved out.
Another area of interest is the single-person household, which has increased 386% since
1990 to encompass 17% of the population in 2005. This is due to the increased wealth of
Spain, which has allowed younger people to be more independent from their parents,
purchase or rent their own property and in many cases move to different areas of the
country.
Income
The mean annual gross income saw large gains to reach €16,168 in 2005 an overall
increase of 69% since 1990. However, in constant income terms this looks underwhelming
as the 2005 figure is less than in 1990. The country's strong economic performance, with
annual growth above the EU average, a marked increase in available jobs and the rise in
the average wage were the three main factors behind this growth in earnings. However the
increase in prices, introduction of the Euro and high cost of housing have all had an effect
on the real spending power of the increase, with a 1% decrease in constant gross income
and a 4% fall in constant disposable income from 1990 to 2005. However this is predicted
to be more or less stable moving into 2015.
In 2005 those of tertiary education, which includes further education and university, had by
far the largest disposable income, at €16,805, up 42% since 1990 and 9% in the last five
years alone. It is little surprise that the higher the education level the higher the pay, as
higher paid jobs require a better education. An increasing number of people are moving on
to higher education, at just under 4 million educated to this level in 1990 but more than 6 million in 2005. In 1990, 9% of the
population had attained a university education compared with 15% in 2005.
Over the 1990-2005 period, mean disposable income increased by 33% to €30,045,
reflecting the positive economic development, strong job creation and the rise in average
wages. Yet this growth can also be explained by the expansion of income sources in the
great majority of households, with women making a significant entry onto the labour
market and to a lesser extent, young people delaying moving out.
Despite this rise in disposable household income, according to a survey carried out in 2003
by the Spanish Confederation of Housewives, Consumers and Users Organisations
(CEACCU), 59% of Spanish households have financial difficulties reaching the end of the
month – 38% sometimes have economic problems reaching the end of the month, 11%
frequently have this problem and the remaining 10% nearly always have this problem. This
is directly linked to the 71% of consumers allocating a considerable percentage of their
wages towards mortgage payments.
By region, Madrid has the largest disposable income with $25,493 in 2004, then Catalunya
with an annual household disposable income of $24,763, and Navarra, with $24,695.
Extremadura ($16,470) and Andalucía ($18,336) are the communities with the lowest
mean annual disposable incomes.
The most significant percentage changes from 1990 to 2005 were in the higher income
brackets of over $55,000, with the single largest percentage gain in those that earn in
excess of $75,000. This is due mainly to the increased importance of higher-paid tertiary
work undertaken by university graduates in Spain, who are being paid similar levels to
their international counterparts in order that Spain retains the talent, both young and old.
Obviously, the emergence of professional women has also boosted this figure
Overall consumer expenditure rose 152% from 1990 to reach €493 billion in 2005. This is a
direct result of growth in the economy, job creation, and greater wealth through
house-price inflation and incorporation of women into the labour market, all of which has encouraged consumption over the 15 years and will continue to do so into 2015.
The proportion spent on food and non-alcoholic beverages dropped by 4 percentage points
from 1990 to represent 16% of expenditure in 2005. This was due to reduced price
inflation on grocery and food items (with the exception of packaged food) and the growth
in eating out, which has taken some of the expenditure to other areas. In the same period,
clothing and footwear expenditure slipped 2 percentage points to make up 6% of total
expenditure. This would indicate that manufacturing procedures and the reducing real cost
of basic clothing and footwear items has resulted in the ability to spend less in percentage
terms in this sector. There has been a rise in expenditure on hotels and catering of 2
percentage points to reach 19% of all spending in 2005. This eating-out trend is on the
increase in Spain, and there has also been a significant rise in short and weekend breaks
taken by Spaniards. This has been driven by greater income, better transport links and an
emergence of more middle-income households.
Note: very important to note that as Spaniards got richer, the growth in spending on alchohol and tobacco increased faster than any other category!!
Which Regions to target?
In 2005 the Madrid (743 inhabitants per square kilometre) had the highest population
density, followed by the Barcelona region (676), then Vizcaya (512) and Guipuzcoa (347).
Urban population
Following large internal migration in the 1960s and '70s, Spain is a country with a mostly
urban population. In 2005, 77% of the population lived in urban areas, moderately up on
1990 (75%). The trend of movement from rural to urban communities is set to continue at
a slowish rate with 78% predicted to be living in urban areas in 2015.
Consumers in urban areas tend to have a higher income and are more driven to make
high-tech or modern purchases, more inclined to use the Internet and broadband and to
take weekend and city breaks and foreign holidays
Madrid
Madrid is the capital of Spain and hence its most important city. In 2005, Madrid had a
population of 3.2 million, nearly 10% up on 2000. As the financial and economic centre of
the country
Barcelona
Barcelona is Spain's second largest city, with a population of 1.6 million in 2005, up from
1.5 million in 2000. More cosmopolitan and modern than Madrid, Barcelona has
consolidated its position among the great European cities after the 1992 Olympic Games.
In general, there is more interest in fashion and design, which is reflected in the city's
shops, bars and restaurants, thereby attracting a wider range of people.
Valencia
Valencia ranks third with 803,000 inhabitants in 2005, up by 64,000 since 2000. The city is
gaining importance as an economic, financial and cultural centre, while it still has a healthy
quota of tourists.
Housing trends / permanent tourists
Both Europeans and non-European immigrants have acquired second homes in Spain. The number of Europeans – mostly British and German – that move to Spain to live out
their retirement has also increased year-on-year. The World Trade Organisation (WTO)
estimates that 800,000 to 1.7 million more European families will have second homes in
Spain in five years
This situation and the high price of housing pose great difficulties to young Spaniards in
their efforts to become independent. According to Spain's Youth Council, young Spaniards
devote an average of 57% of their income on the purchase of a flat.
(how much money left for purchases of liquors??)
Apartment dwellers
By far the largest property type in Spain is the apartment, which is not surprising
considering the population concentration in cities. In 2005 there were 9 million apartments
in the housing stock, up from 7.5 million in 1990 and representing 60% of all dwellings
Male vs Female spending power
In 2005 men had an average disposable income of €13,238, which was 52% higher than
the €8,682 earned by women. However this disparity has narrowed since 1990, when the
annual income for men was more than twice that of women.
However, according to the National Statistics Institute, the number of households with
women with the highest incomes doubled in the 10 years to 2005, to represent 10% of
total households. Although the growing disposable income is the main cause of this rise, it
has also been strengthened by the higher number of single-parent families, due to the
small rise in the number of divorces
Increasing purchasing power of women
In addition the social make-up of Spain is changing rapidly with working women and career
women featuring much more. Approximately 30% of these households are comprised of
couples where the woman earns more than the man
University educated population
About 70% of Spain's student population attends public schools or universities.
The growing popularity of university has led to a rise in the number of households headed
by a person with higher education, which in 2005 stood at 17% of total households.
However young people do tend to stay at home even after finishing their university studies,
due to the high cost of housing and the precarious work situation
employees vs. entrepreneurs
In 2005 most heads of households were employees, a proportion that was up only very
slightly on the previous year (39.3% of households compared with 38.9% in 2004). The
trend seen over the 1990-2005 period (11% of heads of households unemployed in 1990,
but 3% in 2005) reveals that more employment is being created in the employee sphere.
In addition the overall percentage of households headed by an employer or self-employed
worker has fallen as Spain increases in wealth and creates more employment opportunities.
This trend also backs up evidence that shows a gradual migration from rural communities,
where self-employment is high, to cities, which are characterised by employment
opportunities through working for others.
Curious life style facts
Birds were the favourite pets in Spain in 2005 and indeed Spain has the eighth highest pet
bird population in the world with 7.7 million pet birds. (could we use this in advertising?)
Unemployment statistics…
Spain's overall unemployment rate (14% in 2005) is more than double the European average (around
5%). Nonetheless, young Spaniards, both men and women, find it hardest to gain employment.
They take an average of 29 months to find employment after finishing their studies, with
their first jobs often being temporary and contract work.
(what are the statistics in 2008???....we need to find recent statistics…and compare to population. Need to subtract the unemployed…not out target market)
Price statistics
Food and non-alcoholic drinks prices rose significantly above the rest of the items in 2004,
driven by increases in demand and exchange rates pushing up the costs, and this sector
continued to rise in 2005, albeit at a slower pace.
Note: this should be an opportunity for imports!! More expensive local producers due to currency appreciation.
Transport prices have seen increases over the 2003-2005 period by 5 percentage points.
This is mainly due to increasing oil costs driving up the cost of fuel and the seemingly
inexhaustible consumer demand for oil. In addition, the strengthening of the euro pushed
up the net import rate for this product.
Big (but declining) smoking population
In 2005 almost 30% of Spaniards aged 15 and over smoked; 41% of men and 18% of
women. This percentage has fallen significantly, from 36% in 1990, due to education, and
a concerted effort on the part of the existing and previous governments, with a large
decrease of 5% of the population between 2004 and 2005 alone. The increasing preoccupation with
health among Spaniards and the proliferation of government initiatives has reduced the
number of smokers. The rises in the prices of cigarettes (due to the necessary price
convergence with the rest of EU countries) has also had an effect, as have private
initiatives, with an increasing number of companies launching schemes to help employees
quit smoking. All these factors have increased pressure over tobacco, causing an increasing
number of Spaniards to want to give up smoking and driving up sales of both smoking
cessation aids.
Note: with the emphasis on health…maybe “fruit –based caipirinhas would be a success?”
Health trends
Alternative medicines are rapidly gaining popularity among Spaniards, boosted by the
rising trend for natural products. There has been a the noticeable increase in the number of
herbalist shops and in traditional pharmacies offering natural products at a time when
interest in homeopathy and other techniques is growing
Gym membership is rising year-on-year, in line with a society increasingly concerned about
aesthetic factors and body care. In 2003 it was estimated that about four million people
subscribed to health centres in Spain, usually visiting after work during weekdays,
especially Monday to Thursday. Aware of the fact that people are interested in more than
just muscle development, centres have popularised techniques that combine the care of
body and mind, such as yoga, tai-chi and hydrotherapy.
Sports
Sport is not one of the main activities of Spaniards in their free time, although physical
appearance and the general drive for health is contributing to reversing the trend slightly.
According to the National Health Survey, in 2003 more than half of Spaniards did not
exercise regularly. Young women stand out the most, with 62% claiming not to practice
any sport at all, or only occasionally. This is backed up by 2004 WHO figures which showed
that 55% of Spanish women were overweight compared to a European average of 42%.
However, the number of people interested in sport is much higher. Spaniards are
passionate about watching and reading about sport, as demonstrated by the fact that the
best-selling newspaper in Spain is Marca, which is exclusively dedicated to sport,
particularly football.
After football, Swimming and biking are the other two most popular sports in Spain. Moreover, major
concerns among Spaniards regarding health and beauty has led to a rise in the number of
gyms and gym membership. Increasingly hectic lifestyles have raised the popularity of
sports favouring contact with nature. Thus, adventure sports, such as trekking, rafting,
bungee jumping and climbing are gaining enormous popularity, especially among people
aged 16 to 30. In addition, increased wealth has allowed Spaniards to join gyms and spend
more money on equipment, allowing the proliferation of more expensive sporting
endeavours.
The emergence of Fernando Alonso has led to Formula 1 racing increasing in popularity. F1
motor-racing was only followed by a minority in the past, but now Alonso's races are
watched on TV by millions of Spaniards, who are increasingly showing more interest in
getting to know the peculiarities of this sport.
Marketing idea: tie our product to a hero in one of these “alternative sports”, such as F1 racing…
University education
The number of students in higher education, including university, was 1.9 million in 2004, a
rise of 59% since 1990. However this rise was most impressive from 1990 to 2000, rising
63% over these 10 years, but has been more or less stable ever since. This is due to
several factors, with overcrowding being a big problem in Spanish universities
In Spain there are 48 public universities, which take over 85% of students and 20 private
universities taking the rest.
In recent years, Spain has consolidated its position as the third most popular destination
for foreign students within the EU.
Eating Habits
The Mediterranean diet of Spaniards has held the country in good stead over the years,
with a lower level of heart disease. The WHO considers Spaniards to have one of the best
diets in the world.
There is a clear trend towards an increased consumption of packaged and processed foods
and a key change in eating habits over the 2000-2005 period
Overall, the Spanish purchased on average 10kg per person more fresh produce in 2005
than 2000. The two biggest gains in percentage terms over this period were other meats
and lemons and limes, whilst the biggest gains in real kg terms were pork and oranges,
tangerines and mandarins.
Eating out
Almost a fifth of the average household income in Spain is now spent on hotels and
catering; the increase on previous years has been driven by increased income and less
time to prepare fresh food due to professional pressures
This sector has seen a remarkable number of new ethnic restaurants,
especially in the main city centres and tourist areas. (Brazilian??)
Drinking
The number and type of drinking establishments in Spain is very broad, including bars,
pubs, cocktail bars, discos and live music bars. The sector is undergoing modernisation,
tending towards much more modern establishments with much more elaborate decor.
There are still a number of traditional bars, much cheaper and where most patrons are
men, although these are in a clear decadence. It is important to remember that Spain is
the second most popular tourist destination in the world and its bars and clubs rise to meet
this challenge.
According to the INE in 2004, the Spanish spent 3% of their total expenditure on alcoholic
drinks, with approximately 76% of men and 51% of women aged 15 to 64 years
consuming alcohol regularly.
Alcohol consumption patterns have varied considerably during the last two decades. The
traditional daily alcohol consumption – during meals or gatherings – is becoming less
common in favour of drinking much more centred on parties, holidays and weekends,
especially among young people. Older generations in contrast, continue with the traditional
drinking patterns, being common to consume alcohol throughout the day in small
quantities.
The change in drinking habits directly affects the types of drinks consumed. Beer and wine
are drunk Monday to Thursday, with spirits consumption increasing greatly at weekends.
According to the Health Department, 24% of young people drink alcohol on Fridays, rising
to 56% on Saturdays. Such consumption, essentially spirits, takes place in bars, discos and
pubs and, to a lesser degree, in private houses, streets and parks.
In the age group 13 to 19 there has, over recent years, been a marked change in
behaviour, with one of the most high profile activities being a phenomenon popularly
known as botellón. This involves teenagers congregating on certain streets or car parks and
drinking cheap supermarket beer. This activity is considered by many Spaniards to be
antisocial, noisy and a menace, with police trying to stop the practice. This has occurred
due to rising prices, independence of teenagers and the lack of control over the sale of
alcohol to minors. (DON’T TARGET THIS GROUP!!!)
As yet the Spanish have managed to avoid the Northern European experience of no-go city
centres on a Saturday night, alcohol and fighting etc going hand in hand. This is partly
cultural and also due to the late opening hours that allow drinking to be spread across a
longer time frame. However this may also have been controlled in the past through income
levels, making it more difficult for the young to afford alcohol. This again is changing as
Spain gets wealthier.
Alcoholic Drinks
Generally, alcohol consumption in Spain is tending towards products with a greater
added-value, with quality gradually being preferred to quantity. This is causing an increase
in the average price and the better development of premium categories, such as imported
beers, quality wines (DO, or denomination of origin wines), premium whisky or reserve
brandy.
In Spain, spirits are usually consumed in the late evening and mixed with soft drinks.
Branding is of great importance in spirits and in most cases consumers do not order drinks
by kind, but by brand name. In this context, expenditure on advertising acquires higher
importance. In addition the drinks companies are marketing
alcoholic beverages directly to younger consumers rather than traditional brands, with
bright fashionable labelling and pre-mixed drinks.
Attitude toward “do it yourself”
Unlike the US, Spaniards generally consider DIY a duty or even a punishment rather than a hobby. Most
consumers have little knowledge of DIY, and only perform simple tasks out of need,
The country's good climate also plays a key role; Spaniards have an outdoor lifestyle,
spending less time at home than their Northern European counterparts, and
consequentially devoting less time on home maintenance
markeing idea: maybe this aversion to DIY will lead Spaniard to NOT want to mix their own caipirinhas…so it is important to really team up with bars and restaurants that will mix the drinks for them
Food shopping
Spaniards go shopping once a week on average, although, contrary to other
countries, Spaniards prefer supermarkets because of their close proximity and increasing
product range. Supermarkets are the main distribution channel in Spain, followed by
hypermarkets. Both represent the bulk of food sales
Carrefour, with its wide network of supermarkets (under the Champion fascia), discounters
(Dia) and hypermarkets (Carrefour), is the leading multiple grocer in Spain. The French
company has a strong share in hypermarkets with more than 120 outlets in Spain
Nevertheless, Mercadona, a leading supermarket, has recorded the best performance in
recent years. This was supported by a strong policy of expansion and above all, its
marketing strategy of highly competitive prices and a wide range of private-label products
of high quality and at very economical prices. In 2005, Mercadona had more than 770
outlets of varying size in Spain
Loyalty cards are widespread in Spain, though Spanish consumers often show little loyalty
towards a chain or brand. Consumers visit five or six retail chains on average per month,
including supermarkets, hypermarkets, discounters, traditional and convenience stores.
Comfort, quality, price, offers and promotions are the key decisive factors when
purchasing.
In view of this, leading retail chains are intensifying their loyalty policies with constant
promotions and discount coupons. The accumulation of points per purchase, which can be
exchanged for gifts or large discounts, primarily on houseware products, is becoming more
and more important among the leading operators such as Carrefour and Caprabo
(could we market a loyalty-card program for cachaca??)
Beauty / Fashion trends
Due to the increased wealth of Spain, there has been an increase in premium brands and
the brand consciousness of the Spaniards as a whole, with premium fragrances registering
value growth of 29% from 2000 to 2005.
Although generally informal in dress and not particularly vain, Spaniards are becoming
rapidly and increasingly interested in fashion, a trend boosted by the growing importance
of image in society, greater sophistication among consumers and the positive economic
background – which has increased available income and purchasing power
The emergence of domestic brand retailers has also been fundamental in bringing about a
heightened interest in fashion. Chains such as Zara, and Mango have expanded throughout
the country, offering designer products at very competitive prices. Such expansion has
enabled lower- and middle-income earners to have access to avant-garde and modern
products allowing fashion to move away from being a luxury item to something most
people can enjoy.
In general, Spanish consumers favour brand names, preferring the name of a given
manufacturer to factors such as colour or form when they go shopping. In addition imports,
especially from Asia, swamping the market with products in the lower price range, has motivated leading manufacturers to focus on strengthening the brand name as a key
differentiation strategy. The greatest stumbling block is the development of one-brand
retailers, which offer designer products at much lower prices. These are especially popular
with younger generations.
Media
At home, Spaniards prefer, in order of importance, watching TV, listening to music,
listening to the radio, and reading newspapers and magazines. Nevertheless, during most
recent years, Spaniards are showing a growing interest in using computers – especially the
Internet – and playing with games consoles. Spaniards spend more than three hours a day
watching TV and, generally, watch it alone (44%) or with their partner (26%). The arrival of the Internet in everyday life has
also brought a change in domestic habits, since surfing the Internet is now one of the
favourite activities of Spaniards – especially among the youngest – in their free time.
Television is by far the leading communication medium in Spain, with a coverage of more
than 91% of the population. In 2003, Spaniards watched, on average, 214 minutes a day,
with TV reaching all income and age brackets. Late evening/night represents the prime
viewing time, with sports, quizzes and fiction being the most popular programmes in 2005.
Radio is the second most important communication medium in Spain, with an average
estimated coverage of 60% of the population. In contrast to TV, mornings represent the
prime time. Sports programmes, broadcast daily and live match broadcasts at weekends
enjoy enormous popularity.
Spaniards read less newspapers than many European countries as it is estimated that only
one in every 10 Spaniards buys a newspaper daily, although this figure doubles at
weekends when the major players publish economic supplements and special reports. The
sports newspaper Marca is the most read, with a daily circulation of 2.5 million.
more than a quarter of Spaniards consider watching TV their favourite hobby
In 2005, there were five national stations in Spain: two public (TVE1 and TVE2) and three
private (Antena 3, Telecinco and Canal+). The three private stations are quoted on the
stock exchange. Additionally, there are 12 autonomous stations, which can only be
watched in their respective autonomous communities, although quality varies dramatically
Does this list influence our choice for advertising?
Going out trends
Spaniards spend their free time mainly in activities of a social nature, such as enjoying
time with family or friends. Bars and restaurants in Spain are meeting points for friends
and real social centres. However, it is not until late evening or at weekends that Spaniards
have some free time to gather for a drink, mostly because of the split working day common
in Spain. Hence, for most Spanish, the week is divided in two parts: from Monday to Friday
is mostly dedicated to work, and weekends, to leisure
Spaniards increasingly carry out most of their socialising in the late evening/night, and at
the weekend, with the latter especially true of people aged 16 to 25; four out of 10 young
people go out every night, or almost every night, at the weekend. People aged 20 to 24
generally return home the latest on weekend nights. Social gatherings are also the
favourite leisure activity among young people, with nine out of 10 individuals spending
some time with friends. Fifty-seven per cent of young people like going disco dancing and
53% usually meet friends for drinks
After the age of 25, most Spaniards stop going out regularly at night during weekends –
45% of people aged 25 to 29 go out little or not at all at weekends
Theatre goers
On the other hand, the number of Spaniards (women especially) going to the theatre has
increased since 2002. Dramatic plays attracted almost 50% of theatregoers, followed by
musicals with 20% of the total in 2003. Citizens of the major two cities – Madrid and
Barcelona – are the fondest of both cinema and theatre, due in part to the fact that the
offer is much broader in those cities. Again this is a reflection of more people being able to
afford the theatre
Culture
More than half of Spaniards never visit museums or art galleries, and only one in 100 pays
a visit to one frequently.
Lesson for Marketing cachaca: don’t make the marketing too “high culture”, because Spaniards are not interested.
Tourists
Spain remains the number two destination in the world
Spain continues to occupy the second position in the world for both the number of tourists
received (after France) and by volume of sales (after the US). The travel and tourism
sector now makes up 12% of GDP and is of an enormous importance to the Spanish
Economy
Key arrivals: German visitors return and the UK/France market still strong
The number of German visitors to Spain increased significantly for the first time in five
years and only the second increase in six years, taking the visitor number back to 2001
levels. This is due to a slight increase in confidence in the German economy coupled with a
sustained effort by Spain to bring back German tourists. This was coupled with continuing
growth of visitors from the UK and France
Note: germany = largest consumer of cahcaca worldwide (after Brazil)
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