Spain: Retail Foods Annual

Spain's economy grew almost three percent in 2025 - roughly double the Eurozone average - reinforcing its position as the fourth-largest economy in the Eurozone and a key European food hub. A consumer base of nearly 49 million people, boosted by a record 100 million annual tourists, continues to drive strong demand for imported consumer-oriented goods, seafood, and food ingredients. Yet since early 2026, rising prices and tighter household budgets have reshaped shopping patterns and redistributed market share: Mercadona still leads sales, but discount and regional chains are gaining ground as consumers split purchases across retailers and chase promotions. Private-label products now exceed half the shopping basket by value-Europe's second highest share - as retailers pivot toward value-for-money positioning, loyalty-driven personalization, and efficiency - from AI-enabled operations to streamlined "short assortment" formats that favor private-label and health-oriented products over broader variety.