Market Trends of Spain HRI Industry
Rapid Growth In QSR (Quick Service Restaurants) and Fast-Food Segment In Spain
Fast food, being a popular choice among Spanish consumers, continues to grow, majorly driven by price consciousness. Among consumers in Spain, eating out is a popular trend, which further favors the growth of fast food. Quick-Service remains a key format, due to strategies based on lowering prices, promotions, and convenience, wherein companies are observed to increasingly introduce product innovations and customization of food menus according to local tastes and preferences. Key market strategies, such as partnerships and expansions in the number of outlets, are expected to boost the market demand. However, fluctuations in commodity prices and a rise in labor costs can pose a major market challenge.
Additionally, the increasing number of quick service restaurants, such as KFC, MC Donald's, Pizza Hut, Domino's Pizza, Inc., and others have captured maximum consumer attention, looking for convenience in their everyday meal requirement. For instance, in 2021, according to the survey conducted by the Ministry of Agriculture, Food and Environment and TNS (Transaction Network Services) for respondents aged between 15-75 years in Spain stated that the out-of-home food places included are restaurants and similar outlets, work and school canteens, street stalls and kiosks, food delivery orders, airplanes, trains, vending machines, drive-thrus as well as invitations to other homes, etc. While lunch time was found out to be the most popular time to consume food out in Spain which accounted to approximately 34%. These statistics indicate that a significant percentage of consumers are preferring outside food which inturn helps in the growth of QSR (Quick Service Restaurants) and Fast-Food market Segment sales. Therefore, these factors have helped drive the growth of the Spain HRI Market.
Street Stalls/Kiosks Segment Gaining Popularity
Growth in this segment is driven by growth in independent street stalls and kiosk operators, majorly due to the growth of tourism. Tourists are generally attracted by Spanish food, such as ice cream, churros, and hot chocolate that are served in street stalls at lower prices, compared to high-end restaurants. Additionally, food products in the Spanish market are becoming more diversified, and consumers are becoming more open, creating opportunities for new and foreign products served at street stalls and kiosks. An example of a prominent player in this segment is Oscar Mayer, a chain of street kiosks with significant leadership in the hot dog and bacon categories.
Additionally, Spain's population's spending patterns on eating out demonstrate the importance of the food service sector to both its culture and economy, particularly the Street Stalls/Kiosks Segment. For instance, in January 2022, according to Directorio Central de Empresas (DIRCE) and Instituto Nacional de Estadística (INE), approximately 16.3 thousand restaurants and stalls selling food were officially registered in Catalonia, making it the Spanish autonomous community in Europe with the highest number of these types of businesses/establishments. Hence, all these factors such as consumers purchasing patterns and increasing tourists population, etc, positvely drive the Street Stalls/Kiosks segment of the Spain HRI Market.
