Spanish manufacturers and distributors have grown cautious about the road ahead, even as they expand in scale. A broad coalition of major consumer companies, grouped under the echo association, reported a 4.6% rise in turnover in the recent period, driven by price increases despite ongoing supply challenges and the war in Europe. In terms of volume, sales slipped by 1.3%. With fierce competition in the market, price remains a dominant factor—masking broader economic uncertainties that linger into the latter part of the year. A NielsenIQ consultant’s report, presented at the 27th Congress of the Manufacturers and Distributors Association (echo), projects end-of-year turnover growth around 3.7% for commercial strategy and marketing. Yet, without a pickup in consumption, this growth may still fall short of expectations.
NielsenIQ highlights another notable trend: store brands in supermarkets have surged by 11.8% so far this year, now representing 43% of total product sales, while manufacturer brands account for 57%. Inflation and rising prices dominate consumer concerns, prompting shifts in buying behavior toward more price-conscious choices. The study notes that 70% of shoppers now prioritize prices and promotions more than before, a 10-point increase from the prior year.
Post-pandemic analysis shows a simplification of the shopping cart, with many consumers focusing on essential items rather than novelty. About half of shoppers admit to prioritizing essentials, yet activity across the sector remains mixed. While manufacturers and distributors face revenue pressures, tourism is rebounding, suggesting that regional differences will influence business development in the coming summer. An Aecoc survey reveals that 59% of respondents plan to take a summer vacation, with 75% visiting Spain, 27% staying at a second home, and 19% traveling abroad.
Improvement signs are strongest in industries hit hardest by the pandemic, such as the hospitality sector, which has seen a sizable uptick in activity—restaurants alone have risen sharply, and perfumeries report notable growth as well. A stroll through major Spanish cities confirms crowded bars, bustling restaurants, and a thriving tourist scene.
Concerns about the supply chain persist, but conditions have begun to normalize. Prices remain elevated, though input costs show signs of easing, potentially creating opportunities for manufacturers to offer discounts or price cuts while raw materials become cheaper. Only a small share of survey respondents—about 7%—expect the economy to deteriorate. Projections for the first half of the year indicate that roughly 37.5% of distributors anticipate ending the period above their targets, with most forecasting turnover growth between 1% and 3% for 2022. For manufacturers, roughly 43% expect to surpass expectations, 45% expect to meet targets, and 12% foresee underperforming.