High competition Reducing the Profit Margin in Spain Baked Goods Sector- Ken Research


Bread has been an integral part of the Spanish diet. Almost every meal in Spain includes bread on a daily basis and the case has been the same for thousands of years. Earlier, the baked goods market had been going through a rough phase due to recession but now with the economy picking up, the baked goods market has also started showing signs of recovery. The consumer confidence in the market has been returning. Bread consumption was continuously declining for sometimes but has now regained its growth. Bolleria is a name for sweet bakery, which is one of the major segments of Spanish bakery market. It is the largest segment in the market followed by sliced bread.

According to the market research report “Baked Goods in Spain“, the baked goods market has been growing in terms of volume after the problems faced by the market in 2014 and 2015. The companies are trying to increase the sales of products, which offer a higher profit margin.The artisan craft bread generates the most revenue and is mostly sold through in-store bakeries and local bakeries. Frozen dough bakery items are now becoming increasingly popular and are substituting the traditional bread dough because of less hassle. In terms of value sales, wrapped bakery holds an insignificant amount but is growing due to the growing prevalence of supermarkets that have in-store bakeries. The local bakers are losing their market share to in-store bakeries. Many of the big companies are trying to expand their business abroad due to less chances of growth in domestic market.

The market is highly competitive and the companies are trying to bring their costs down in order to make their products more attractive. Distribuidora International de Alimentación, S.A. (DIA), Eroski and Mercadona, S.A. are a few of the leading companies in the market. The distribution channels used by the producers include supermarkets, department stores, convenience stores, hypermarket, cash and carriers, variety stores, eRetailers and warehouse clubs. The strong distribution channels have been one of the key tools for improving the market conditions. Frequent deliveries are made to the distribution network. The pre-requisites for retail market of bakery goods include a good promotional packaging, a life shelf of at least 30 days, a margin of over 35% and listing fees according to the store numbers.

The companies have started to recognise the market opportunity by focusing on innovation and health in order to produce new and superior quality products. New product developments are mainly aimed at developing healthier options for the consumers as the existing products already have a high fat and sugar content. Many leading players are now bringing out age specific products in order to broaden their consumer base and offer wider variety to the consumers. For children the products contain high calcium and white bread for school lunches, for the young working generation options as healthy wraps have been introduced. The market has been rapidly adopting with the changes in consumer preferences and promises growth in the coming years. Even though the market shows vital signs of recovery, the disposable incomes remain low and there is high unemployment in the country which hinder the growth of the market.

Topics Covered in the Report

  • Spain Baked Goods Market Research Report
  • Spain Baked Goods Market Size
  • Spain Baked Goods Market
  • Spain Baked Goods Trade Market
  • Spain Baked Goods Retail Market
  • Spain Baked Goods Production Output
  • Spain Baked Goods Import Volume
  • Spain Baked Goods Export Volume
  • Spain Baked Goods Market Future Outlook
  • Spain Baked Goods Market competition
  • Bakery market in Spain
  • Bolleria market in Spain
  • Spain Baked Goods Market share
  • Spain Baked Goods Market growth
  • Spain Baked Goods Market trends
  • Spain Baked Goods Market future
  • Spain Baked Goods Market analysis

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