Spanish beer market remaining stable throughout adverse economic situation

The Spanish beer market remained stabled throughout 2010 and 2011, seeing a modest compound annual growth rate (CAGR) of 0.3% due to leading brands implementing an active upsizing strategy.

The alcoholic beverages segment is forecast to decline by 1% in 2012 due to the difficulties beer producers will face if they continue to use upsizing strategies, which will erode their margins.

There is a consensus amongst the leading players in beer in Spain that the country's adverse economic situation is the main factor shaping the performance of beer.

In particular, the straitened economic circumstances of many Spanish consumers are being held responsible for the ongoing shift in beer consumption away from on-trade channels towards off-trade channels.

In a continuation of trends established in 2009, private label recorded the best performance in beer in Spain during 2011. Private label accounted for 12% of total beer volume sales in 2011, a marginal improvement on its position in 2010.

With Spain's unemployment rate now in excess of 21%, many Spaniards seem reluctant to spend money on leisure activities and superfluous goods, which has clearly had a negative effect on beer sales, which recorded a marginal decline during 2011.

It will take Spain at least fifteen years to return to the unemployment rates which were in effect prior to the onset of the economic crisis. This is set to combine with the low growth rates which are expected to be recorded through to 2016 to erode average disposable income levels in Spain, a situation which will contribute to the 1% total constant value decline expected in the Spanish beer market over the next four years.

For more information on the Spanish beer market, see the latest research: Spanish Beer Market Report

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