Spain: Reaching the consumer

Consumer Profile

The median age has risen sharply since 1970 and reached 45.8 years in 2022. The population is ageing very quickly and decreased by -0.04% between 2021 and 2022. Around 11.8% of the population is under 13 while 67.5% of the population is between 13 to 65 years old and 20.7% is over 65 years old (Data Reportal, 2022). On average, households are made up of 2.5 people in 2020; with 26.35% of households made up of only one person, 30.24% of two persons, 20.48% of three persons, 17.03% of four persons, and 5.91% of five persons or more (Instituto Nacional de Estadistica). Around 50.8% of the population are women. About 81.3% of the population lives in urban areas. Most of the population lives in the agglomerations along the Mediterranean and the Atlantic Ocean, but also in Madrid, Seville and Zaragoza. The three main cities in terms of population are Madrid, Barcelona and Valencia. The OECD estimates that 47.4% of adults aged 25 to 34 have a tertiary degree in Spain compared to 45.5% on average across OECD countries. On average, 36.4% of all upper secondary students enroll in Vocational Education and Training (VET) programmes in Spain, a lower proportion than the OECD average of 42.5%. Some 20.3% of the active population are working as service and sales workers, 19.6% are professionals, 12.4% have elementary occupations, 12% are technicians, 10.6% are craft workers, 10.6% are clerical support workers, 7.7% are plant and machine operators, 4% are managers, and 2.2% are agricultural workers (Eurostat, 2021).

Purchasing Power

The GDP per capita PPP is $ 37,756.4 in 2020, according to the latest data by the World Bank. Data from Spain’s statistical institute (INE, 2019) shows Spanish workers earn an average of €24,396 a year. The average gross salary for men is 26,934 euros, whereas for women is only 21,682 euros. The Gini index on income inequality is 34.3 in 2019 (World Bank). Purchasing power parity in Spain has been decreasing the last few years since wage developments have not kept pace with rising prices. According to the World Bank, in 2020, the purchasing power parity was 0.61 LCU per international dollars. In Spain, the average household net-adjusted disposable income per capita is USD 27,155 a year, less than the OECD average of USD 30,490 a year. In the context of the Covid-19 pandemic, private consumption dropped by -12% in volume in 2020, but it rebounded to 4.4% in 2021 (OECD).

Consumer Behaviour

Spain is a consumer society. As a result of the economic crisis and the level of unemployment, price has become one of the main purchase determinants. The ease of payment, promotions and effective customer service are other key factors. On average, the Spanish shops two to three times a week, although around 50% of sales take place on the weekend. Price hypersensitivity results in a lack of brand loyalty. 75% of Spaniards look for a bargain before buying something, while a quarter leave their regular retailer if they find lower prices elsewhere.

Television is one of the best media in Spain when it comes to spreading the news about brands. 99.7% of Spaniards own a television, but the television advertising industry is competitive and expensive. Radio is also very popular, as 60% of Spaniards listen to radio every day for at least two hours. About 85% of Internet users between the ages of 16 and 65 are active on social networks, and the opinion of an influencer or other consumers will sometimes influence purchasing decisions. Spaniards are among the Europeans most concerned about personal data protection with over 50% expressing their lack in confidence (Statista).

On average, Spaniards spend 328 euros a month on food and 554 euros a year on fashion items (Mordor Intelligence, 2020). There are 43.9 million internet users in Spain, making ecommerce a huge market. Ecommerce market value was estimated at USD 27 billion in 2021, and the most popular purchases on the internet are fashion items (ecommerceDB). Spain has embraced mobile shopping, which was estimated to account for 73% of e-commerce sales in 2021 (Ditrendia). Even if the imported products are widely consumed in Spain, the national products inspired by Spanish culture (in the packaging for example) are generally preferred.

Responsible consumption is developing in Spain. The number of consumers looking for more responsible products, traceability and better quality is increasing. The second-hand market is becoming increasingly popular among Spanish consumers. Collaborative economy platforms are developing in Spain and the Spanish Competition Authority (CNMC) has been supportive. Almost half of the surveyed Spaniards answered that they used the second-hand app Wallapop to purchase this type of products.

Consumer Recourse to Credit

In Spain, the vast majority of residents use debit cards to pay for goods and services. Credit cards are not as widespread but their use is growing. Overall household debt is down in Spain, reaching 60.8% of the country's GDP. This is due to the fact that mortgages are down, and that this has not been offset by the rise in consumer credit. Household debt is made up of around 80% mortgages and 20% consumer loans. The outstanding amount of these is 85 billion euros in 2018. Consumer loans are mainly used to finance vehicles, durable goods and holidays. Competition in the consumer credit market, with the arrival of digital platforms, is pushing credit institutions to make low-cost offers, and the demand for credit could therefore continue to increase. However, the central bank of Spain remains vigilant and considers that if it jeopardises banking stability it could intervene.

Growing Sectors

Leisure and culture, vehicles, accommodation and food services, furniture and carpets, telephones, education, home and garden equipment, clothing.

Consumers Associations

OCU , Organisation for Consumers and Users
CECU , Confédération des consommateurs et utilisateurs
FACUA , Federation of Active Consumers

Population in Figures

Total Population:

48,848,840

Urban Population:

80.3%

Rural Population:

19.7%

Density of Population:

97 Inhab./km²

Men (in %)

49.1%

Women (in %)

50.9%

Natural increase:

1.02%

Medium Age:

39.0

Ethnic Origins:

The population is composed of a combination of people of Mediterranean and Nordic origins. Native-born Spanish represent 88.7% of the population, and foreigners 11.3%, the majority of whom are Moroccans, Romanians, Colombians, Ecuadorians and Venzuelans. (Spanish Statistical Office).

Population of main metropolitan areas

Source: Citypopulation.de, Latest available data.

Age of the Population

Source: World Bank, Latest data available.

Consumption Expenditure

Media in Which to Advertise

Main Advertising Agencies

Publicidad Supra
Contrapunto
Parnaso
J.C. Decaux España
McCann World Group
Waka
Double You
Medios Outlet

Main Principles of Advertising Regulations

General Rules

The General Advertising Law bans any advertising which affects the dignity of the person or the values and rights recognized by the Constitution. Misleading advertising, dishonest advertising, subliminal advertising and advertising that infringes the stipulations of the law on certain products, goods, services or defined activities is also illegal. Regulation 1924/2006 sets conditions for the use of nutrition and health claims.

Use of Foreign Languages in Advertisement

It is counterproductive to use a foreign language except as an allusive mention of a famous origin (e.g. parfum français [French perfume]). Dubbing/translation or sub-titling are mandatory.