Bakery products made from frozen dough continue to strengthen their share of the overall market in Spain, growing three times faster last year than the industry average according to a new report.
They showed a 2.8% year on year increase to reach a value of EUR1.1 bn in 2014 in a total bakery market that was up 0.9% at EUR3.5 bn say analysts DBK.
But the growing difference between frozen and traditional bread and cake sales was further highlighted by the fact that both of these sub-sectors saw sales fall by 0.6%, to EUR785 mn and EUR855 mn respectively. Biscuits accounted for the remaining EUR790 mn of the total sales.
In a sector showing low growth, with strong competition on price and the growing importance of own label products, “frozen doughs continue to be the most dynamic segment, with the increased substitution of traditional fresh bread with this type of product,” says the company.
“Faced with the apathy of internal demand, the main operators have been reinforcing their international expansion strategies in recent years.” As a result, Spanish bakery exports grew by14% in 2014, to reach EUR728 mn, Imports over the same period were worth EUR545 mn.
The report predicts a rise to 1.6% growth for the Spanish domestic market in 2015 to around EUR3.6 bn as the purchasing power of families improves following the recession. While around 200 companies have sales of more than EUR1 mn a year, the najority of bakers remain small and family run and often specializing in particular products, it points out. But the market has shown signs of concentration in recent years with the five biggest bakery companies now taking a 44.7% share and the top ten 71.6%.