On the occasion of the Aecoc Mass Consumption Congress that takes place in Valencia and begins this Wednesday, it has been analyzed what percentage of their income Spaniards have dedicated to food in the last 40 years, which is how long this event has been taking place. An important date that brings together many managers from companies in the food sector to analyze new trends and challenges.
Spanish households have gone from dedicating 28% of their income to food to only 15% in the last 40 years, as well as changing trends such as going out to eat at a restaurant to eating in the supermarket. This series of changes in consumption are caused by data such as the CPI, which has done nothing more than increase the shopping basket to limits that seemed unattainable. These years have made Spanish consumption evolve at a dizzying pace, causing, for example, now we only go to buy from food stores that the AI recommends to us.
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According to data from the Aecoc Congress, this is how the way companies satisfy consumers and the way Spaniards consume have evolved:
Demographic change: A more senior audience is now sought than a young one
At the beginning of the Aecoc event, 55% of the 37 million Spaniards were under 35 years old, only 35% of women worked and there was 40% youth unemployment, which had a total impact on the way they consumed or bought.
Now, with an aging population pyramid (more than 48 million people residing in Spain, of which 13% are foreigners), the mass consumption sector also focuses its attention on the senior population, due to its demographic weight and economic capacity.
How much do we spend on food?
In the 1980s, Spaniards spent around 28% of their income on food. According to the report prepared by Aecoc, this reflected a lower disposable income and a consumption structure concentrated in basic goods, typical of an economy in transition. Currently, after the impact of the pandemic, this percentage is around 15%.
This change shows a “full convergence” with the most developed European countries: as income increases, spending on food represents a smaller proportion of the budget, although nominal spending in euros is higher. In addition, the shopping basket has diversified and includes products with greater added value. People try to save on everything from vacations to food.
From special occasions to delivery
In the 80s, the report recalls, going out to eat was an occasional activity, reserved for celebrations, trips or exceptional moments. During the 90s, the middle classes began to frequent the then new fast food restaurants and take advantage of the daily menus.
Today, especially after the pandemic, the sector combines in-person experience with online consumption. Consumers seek not only to eat, but also to enjoy “conscious, sustainable, diverse and flexible” experiences, according to Aecoc.
The evolution of purchasing
In Spain in the 1980s, department stores, supermarkets, specialty stores, and local chains shared the retail market, and consumers chose where to shop based on location, assortment, price, or personalized service.
The covid crisis promoted a hybrid model and accelerated digitalization. Currently, supermarkets continue to gain market share, with proposals focused on customer priorities, especially convenience. This shift has turned the ‘ready to go’ concept into a major growth driver. But, of course, consumers are still looking for the cheapest supermarkets to fill their shopping basket and those usually take the cake.
The protagonist: the consumer
In the 80s, consumption in Spain was characterized by its aspirational nature and great loyalty to brands, which became status symbols and were the protagonists of advertising campaigns that marked an era.
Today, virtual assistants and artificial intelligence allow companies to offer personalized experiences. Brands are integrated into everyday life through social networks to attract a consumer that is more “demanding, conscious and with greater decision-making capacity than ever.”