The trade body, which represents the Spanish subsidiaries of multinational giants such as Mondeléz and Nestlé as well as domestic player like Valor Chocolate, today released its 2015 report.
It found the overall Spanish confectionery sector – both export and domestic sales – remained robust in 2014 with sales volumes up 2.6% and value sales up 1.1%, but identified a shift to export markets.
Domestic biscuit sales troubled
The report found 2014 domestic sales for chocolate, biscuits and confectionery dropped 1.1% in value to €3.3bn ($3.6bn), and 1.5% in volume.
“It’s the first time it’s happened in years,” Agustina Salazar, communications manager at PRODULCE told ConfectioneryNews. “We haven’t been able to see the real causes but either way it’s a very small decrease.”
Meanwhile, value sales of Spanish confectionery to export markets in 2014 climbed 7.9% to €1.15bn ($1.26bn) and export sales volumes were up 11.4%.
“The economy is starting to grow in Spain, but it’s been a rough year for our sector,” said Salazar
She said the decline was mainly due to reduced biscuits sales, while other categories remained fairly robust. However she said Spanish companies had still explored alternative markets, while the domestic market remained largely stagnant.
The Spanish Sweet Association (PRODULCE) is a non-profit organization made up of 54 companies, across five different categories: sugar confectionery and chewing gum, cocoa and chocolate, biscuits, fine bakery wares, turron (nougat) and marzipans. Together the firms make up 75% of the Spanish market. PRODULCE recently reelected Wrigley’s senior manager of corporate affairs Olga Martinez as its president. Martinez was elected president of the organization when it formed in 2012 and will now lead the association from July 2015 to July 2017.
Exports accounted for 34.6% of total confectionery volumes produced in Spain in 2014 compared to 32.1% in 2013.
Spanish confectioners traded mainly in the European market with 78% of Spanish confectionery export sales coming in EU countries in 2014.
Export sales grew in every confectionery category last year and the shift from the domestic market to export destinations was apparent in all categories.
For example, as sweets & gum and chocolate sales volumes remained mostly static in the Spanish market, export sales were up 15% and 6.8% respectively. Biscuit sales volumes also climbed 10% as domestic volumes dropped 3.9%.
Salazar said she expected Spain’s domestic confectionery market to return to growth next year as the economy improved.
The European Commission expects Spain's gross domestic profit to grow almost 3% in 2015 and 2016, following 1.4% growth in 2014 and a 1.2% decline in 2013.