Spanish food sector shows more resilience than other industries
The food industry in Spain has been tested by the pandemic but proved more resilient than other industries. The Spanish F&B sector is still represented by more than 30,000 companies and 431,800 direct workers, according to data released by FIAB. However, experts within the industry argue that 2020 may represent the end of a six-year cycle of continuous growth in parameters such as production, the weight of added value, or job creation.
Household consumption is rising
Even so, the data place food and beverages as the industrial sector that has best withstood the threat of the pandemic, with a smaller drop than that of the manufacturing industry and the economy as a whole. “Food and beverage companies have been consolidating the foundations of a robust and stable industry for years. This effort has allowed the sector to better resist the strong impact of Covid-19 and to be in a position, with the impulse and public-private collaboration, to lead the change for the economic and social recovery of Spain ”, affirms the general director of FIAB, Mauricio García de Quevedo, quoted by the Retail Actual magazine.
As a result of the containment measures for the expansion of the coronavirus, the real production of the sector has totaled €129,854 million and reflects a decrease of -5.3% with respect to the results of the year 2019. However, this fall is situated well below the decline in the Spanish economy as a whole of -11%.
In line with production, the Gross Value Added has also experienced a decrease to €24.5 billion, that is, -8.37% lower than the 2019 records. The share of the GVA of food and beverages on the total economy has remained at around 2.4% and 14.75% of the total for the industry, which underlines the strategic nature of food and beverages.
A major part of this drop was caused by the restrictions imposed in the food service and hospitality areas. However, household consumption has registered a 16.15% rebound and reached €71.3 billion between the months of January and November, the latest data available. The confinement measures have raised the average per capita expenditure made at home to close to €1,610, a behavior that represents a growth of 19.0% in relation to the same period of the previous year.
Demand from China supports the Spanish meat industry
Exports of the Spanish meat industry in 2020 reached €33.9 billion, a 4.4% increase over the previous year. Although the strength of the Spanish sector abroad is demonstrated, this growth is strongly supported by the Chinese demand for meat products, without which, the industry would suffer from the oscillation of international markets and the limitations imposed by Covid-19.
As a result of the pandemic, the trade balance of the food and beverage industry was €12.6 billion, a considerable increase driven by a fall in imports. As a noteworthy data, the base of exporting companies increased by 1.3%. Although it does so at a lower rate than in 2019, this data acquires more value because it is situated in a difficult context for the viability of companies.
By markets, the EU continues to be the main destination and absorbs 54.9% of the Spanish food and beverage exports. The ranking is led by France (€4.9billion), followed by Portugal (€3.4 billion), Italy (€3.4 billion) and Germany (€1.8 billion). Outside the EU, it is worth highlighting the performance of China (€3.7 billion), which in the general classification ranks as the second trading partner due to the growth in demand for meat products; United Kingdom (€2.1 billion), already as a third country; and the United States (€1.8 billion).
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