Food distribution, a growing sector

The food distribution sector is experiencing continuous growth. That is the concise conclusion of the report Economic Watch by Sector DBK by Informa. The forecast for a sector that includes supermarkets, hypermarkets, self-service and cash & carry stores is that it will close the year with a total volume for the Iberian market of 102,330 million euros, which represents a 2,3% increase on 2015. Good news indeed for every player in the industry and for Eurofrits, which has Retail as one of the biggest and fastest-growing channels of distribution.
Our brand services the main supermarket and hypermarket chains in our country, with both the standard range and tailor-made products. The most sought-after products in this channel are mostly precooked specialties: Croquettes, Chicken Specialties (especially Nuggets, Chicken Breast) and Fish Specialties (Hake Fingers, Breaded Squid Fingers).
“Aside from the standard products, Eurofrits follows through the clients requests, developing à la carte products. Basically we receive a special formulation to differentiate their product from the competition, the segment leader, or fit a given price positioning”, declares Ramón Garriga, Eurofrits Retail Channel Country Sales Director.
It seems like 2016 will be a good year for the Frozen Food sector. For starters, 2015 showed a 2,3% rise, a higher rate than the average in FMCG, which was 1,8%. These are signs of recovery indeed for a product category that pools 6% of the total food expenditure.
According to the report Economic Watch by Sector DBK, by Informa, the distribution sector experienced an important upturn in 2015, with a total turnover in Spain and Portugal around 100,050 million euros, 1,8% higher than 2014, when sales shrunk 0,3%. In Spain the total market value rose to 85,520 million euros (+1,9%), which amounts to 85,5% of the total, while Portugal reached 14,530 million euros (+1%).
The increase in the number of outlet visits and the growing role of fresh produce in the shopping basket is pushing the proximity stores sales upwards, in detriment of the business generated by hypermarkets. As a result, total volume for supermarkets and self-service stores grew 2,4% in 2015, for a total of 77,340 million euros.
Hypermarkets reduced their market share by decreasing their turnover by 0,6%, down to 17,475 million euros. Cash & Carry has been favoured by the catering sector activity and the higher demand from tourists. In 2015 the combined income for Spain and Portugal totalled 5,235 million euros, 1,5% higher than 2014.