Good news for food distribution
Another year on we receive good news regarding the food distribution industry. According to a report compiled by Informa´s DBK Sectorial Watch, business volume in the food distribution Spanish market, which covers large retail spaces, supermarkets and cash & carry outlets, will reach a total figure in the vicinity of 90 billion euros by the end of 2017, which is the equivalent of a 2,6% increase on 2016 volume. Good news for the sector in general and Eurofrits in particular, given that Retail is one of our main channels of distribution and growth.
The study, which analyses the Iberian market (Spain & Portugal), estimates that on 2017 there will be an increase of 2,7%, to a total of €105,400 million, in a context of economic growth in both countries, as well as rising household spending. This year continues last year trend: in 2016 total sales amounted to €102,580 million, 2,5% higher than the previous year.
The report points out that supermarkets and self-service outlets will continue to gain market share in the short-term. In 2016 sales grew 3,2% for the complete Iberian market, reaching €79,800 million, highlighting the positive evolution of the discount store segment.
On the other hand, the aggregate turnover for hypermarkets reduced during the same period for 0,3%, dropping to €17,415 million, which caused its total market penetration to fall to 17%.
The restaurant sector´s rise in activity caused a sales increase in cash & carry outlets in 2016, for both Spain and Portugal. Total turnover last year, counting both markets, neared €5,400 million.
It´s worth noting the strong growth of online sales in the last few years, a trend that can only accelerate in the short and medium term. E-commerce sales in hypermarkets, supermarkets and grocery stores in Spain increase 61% in 2016, to a total of €522 million, although this figure still amounted to less than 1% of their total income.
For more info on DBK, click HERE.