The frozen food market in Spain and Portugal has been experiencing steady growth in recent years, reflecting broader trends in consumer behavior and lifestyle changes across the Iberian Peninsula. As of 2022, Spain was estimated to be dominating the landscape at roughly 80% of total.
Spain’s frozen food sector, valued at around EUR2.8bn in 2021, has been growing at a consistent annual rate of 3-4%. This mature market offers consumers a diverse range of products, with frozen vegetables and seafood leading the pack. These two categories combined account for nearly half of the market share, with vegetables claiming about 25% and seafood following closely at 20%.
The rising star in the Spanish frozen food arena is the ready meal segment, which has captured approximately 15% of the market share by 2022, indicating a shift towards more convenient dining solutions. While smaller in scale, Portugal’s frozen food market is displaying more rapid growth, with annual increases of 5-6% in recent years. The Portuguese market reached a value of about EUR700m in 2021, showcasing a robust appetite for frozen products.
In contrast to Spain, Portugal’s market is dominated by frozen fish and seafood, which constitute around 30% of frozen food sales. Frozen vegetables and potato products each claim about 20% of the market share, while ready meals are gaining ground, particularly in urban centers, now representing roughly 15% of the market.
Towards healthier options
In both countries, there’s an obvious shift towards healthier frozen options, reflecting a broader trend across Europe. Products boasting clean labels, organic ingredients, and reduced sodium or fat content have gained significant traction. This health-conscious movement is further evidenced by the growing demand for plant-based frozen foods, to the delight of the increasing number of flexitarian and vegetarian consumers in the region.
Innovation in the sector has been pivotal, with a focus on premium products, ethnic flavors, and convenience. Spain has seen a surge in frozen versions of traditional dishes like paella, adapted for quick preparation. Meanwhile, Portugal has witnessed an increase in frozen seafood products featuring gourmet sauces and seasonings.
Both countries have embraced trends such as frozen smoothie kits and vegetable-based pizza crusts, indicating a market that’s responsive to global health and wellness trends. When compared to other European markets, Spain and Portugal exhibit some unique characteristics. For instance, frozen ready meals have a lower market share compared to countries like the UK or Germany, where they can account for up to 30% of the frozen food market.
However, the strong performance of frozen seafood in Spain and Portugal sets them apart from many of their European counterparts. In the global context, while Spain and Portugal represent a relatively small portion of the worldwide frozen food market (valued at over USD300bn), their growth rates of 3-6% outpace the global average of about 4%.
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