Contents:

Issues in the Market Definition Consumer research Abbreviations Market in Brief Can the strong growth be sustained? Demand for both own-labels and premium branded products Healthier alternatives Low penetration, but high frequency of use Chilled convenience closer to fresh produce Internal Market Environment Key points Eating out is done infrequently, although on the increase Figure 1: Trends in eating out, 2004-06 Low ownership of freezers does not have to limit potential for frozen convenience foods Figure 2: Ownership of microwave ovens, freezers and combined fridge/freezers, by country, 2006 Figure 3: Trends in ownership of microwave ovens, freezers and combined fridge/freezers in Spain, 2004-06 Figure 4: Ownership of microwave ovens, freezers and combined fridge/freezers, by demographic sub-group, 2006 More time devoted to work and hobbies means less time for cooking Figure 5: Trends in average hours spent on a working day on professional occupation (main job or other paid activities), 2004-06 Figure 6: Trends in average hours dedicated to daily amusemements, recreation and personal relationships (hobbies and sports, not television), 2004-06 Broader Market Environment Key points Greying population poses a challenge Figure 7: Trends in Spanish population, by age, 2001-11 Growing number of working women creates demand for convenience Figure 8: Trends in Spanish employment, 2001-05 Favourable economic climate Figure 9: Trends in Spanish PDI, consumer expenditure and GDP, at current prices, 2001-11 Small households less likely to cook from scratch Figure 10: Trends in number of Spanish households, by size, 2001-04 Figure 11: Trends in Spanish households, by demographic characteristics, 2001-04 Who’s Innovating? Key points Ethnic ready meals tempt Spaniards’ traditional palates Going natural Size matters in pizza Inspiration from the US Exotic cooking sauces Tomato sauce is a store-cupboard staple Soup launches emphasise natural ingredients Market Size and Forecast – Convenience Foods Key points Dynamic growth Figure 12: Spanish retail value sales of selected convenience foods, 2001-06 Preference for home-cooked, traditional meals Younger generation adopting convenience habits Good growth for convenience options Forecast Figure 13: Forecast of Spanish retail value sales of selected convenience foods, at current prices, 2006-11 Figure 14: Forecast of Spanish retail value sales of selected convenience foods, at 2006 prices, 2006-11 Factors used in the forecast The future Segment Performance Key points Ready meals Continued strong growth backed by greater product sophistication Figure 15: Spanish retail value sales of ready meals, at current and constant prices, 2001-06 Chilled ready meals benefit from a fresher, more natural image Figure 16: Spanish retail value sales of ready meals, by type, 2004-06 Average spend higher in chilled than frozen Pizza Chilled overtakes frozen Figure 17: Spanish retail value sales of pizza, at current and constant prices, 2001-06 Figure 18: Spanish retail value sales of pizza, by type, 2004-06 Cooking sauces Ready-to-heat takes the lion’s share Figure 19: Spanish retail value sales of cooking sauces, at current and constant prices, 2001-06 Figure 20: Spanish retail value sales of cooking sauces, by type, 2004-06 Soup Expanding product range supports sales Figure 21: Spanish retail value sales of soup, at current and constant prices, 2001-06 Figure 22: Spanish retail value sales of soup, by type, 2004-06 Market Share Key points Ready meals Own-labels challenge branded suppliers Figure 23: Manufacturers’ retail value shares of ready meals, 2004-06 Pizza Local players compete with key multinationals Figure 24: Manufacturers’ retail value shares of pizza, 2004-06 Cooking sauces Own-labels take the largest share Figure 25: Manufacturers’ retal value shares of cooking sauces, 2004-06 Soup Spanish company Gallina Blanca takes top spot Figure 26: Manufacturers’ retail value shares of soup, 2004-06 Companies and Products Casa Tarradellas Gallina Blanca Heinz Ibérica Nestlé España Unilever España Channels to Market Key points Contracting trading base favours larger stores and discounters Figure 27: Number of food retail outlets in Spain, by type, 2000-05 Hypermarkets and supermarkets Discounters The Consumer – Pan-European Overview Key points Low usage, greater potential Figure 28: Household use of selected convenience foods, by country, 2006 Fresh is best, good prospects for chilled convenience foods Figure 29: Household expenditure on selected primary foods, by country, 2006 Once convinced, consumers are product loyal Figure 30: Household use of selected convenience food products, by frequency, by country, 2006 Figure 31: Level of spend on selected primary foods, by country, 2006 What is in the European shopping basket? Figure 32: The top three most frequently purchased convenience foods*, by country, 2006 Figure 33: The top three food products, by expenditure*, by country, 2006 The Consumer – Use of Convenience Foods in Spain Key points Trends in frequency of using convenience foods – ready meals gain Figure 34: Trends in penetration and frequency of using selected convenience foods, 2004-06 Figure 35: Growth/decline in consumer base, convenience foods by product, 2004-06 Fresh vs frozen – established shopping habits Figure 36: Trends in expenditure on selected food products, 2004-06 Figure 37: Growth/decline in consumer base, fresh and frozen foods by product, 2004-06 The Consumer – Attitudes Towards Convenience and Quality Key points Takeaway meals liked less in Spain (but almost half of adults eat them) Figure 38: Attitudes towards cooking and meal occasions, by country, 2006 Less enjoyment of cooking implies readiness to use convenience alternatives Figure 39: Attitudes towards food quality, by country, 2006 Figure 40: Food attitude index, by country, 2006 Trends in attitudes in Spain are favourable for convenience foods Figure 41: Trends in attitudes towards cooking and meal occasions, 2004-06 Figure 42: Trends in attitudes towards food quality, 2004-06

Companies Mentioned

-Casa Tarradellas -Gallina Blanca -Heinz Ibérica -Nestlé España -Unilever España