Market & Trends

Spanish Plant-Based Market Continues to Grow with Increased Investment & Turnover

The Spanish plant-based market has experienced significant growth in turnover with an increased number of businesses, according to the latest report on the sector by the Universidad Pontificia Comillas, the Spanish Vegetarian Union, and communication firm The Vegan Agency.

The report offers a detailed economic x-ray of the evolution of the sector, highlighting both the increase in revenue and the financial challenges it faces in an increasingly competitive market.

In 2023, the plant-based sector in Spain consolidated its economic position with a 21% increase in the €100,000 to €500,000 turnover range, reflecting sustained consumer interest and the consolidation of new business models.

Catalonia continues to be the region with the highest number of plant-based companies, while Valencia has seen a notable increase, even surpassing Madrid in number of active businesses. Andalusia has also seen a significant upturn, reinforcing regional interest in the sector and attracting investment potential.

CUVO FOODS team shot Barcelona
CUVO FOODS, image courtesy of The Vegan Agency

Despite the overall growth, the report shows a drop in the share of hospitality as the main activity, from 30% in 2021 to 22% in 2023. This decline can be attributed to the closure of several establishments, reflecting the restructuring of the sector and a diversification into other revenue channels. Today, 67% of businesses supplement their income with additional activities, indicating a reliance on alternative streams to sustain their profitability.

Increasing female leadership

The number of sole proprietorships in the vegan sector has decreased over the last three years, from 40% in 2020 to 26% in 2023. It is worth noting that these sole proprietorships are mostly led by women, consolidating a trend in which plant-based entrepreneurship is aligned with female leadership in Spain.

The study also points to the emergence of strong competition from non-vegan companies that are introducing plant-based products in their catalogues, complicating the market landscape for specialised brands. In this context, the Spanish Vegetarian Union recommends certification as a strategic tool to differentiate and gain market share in a more demanding environment.

Väcka cheese lifestyle shot
© Väcka

Pessimism in the sector has increased, with only 20% of businesses perceiving the outlook for veganism as ‘Very Favourable’ in 2023, compared to 45% in 2021. Businesses point to competition, bureaucracy and lack of consumer awareness as their main current concerns.

The Vegan Agency insists that effective communication and professionalisation of the sector will be essential for its sustained development. Outsourcing of communication has increased in recent years, and by 2023, only 60% of companies will choose to manage it in-house, down from 83% in 2021. This trend reflects the growing importance of communication as a key area of investment to ensure a strong market position.

With a plant-based market continuing to gain traction, the report highlights the need to balance ethical initiatives with sound commercial strategies. The entry of new players and increased competition is forcing companies to innovate and differentiate. In a context of transformation and professionalisation, the plant-based sector in Spain presents a scenario of sustained growth in turnover and demand, with great opportunities for those who manage to adapt to the changing dynamics of the market.

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