SPAIN – Spain’s plant-based sector is experiencing a steady increase in turnover alongside a rise in the number of businesses entering the market, according to a new report by Universidad Pontificia Comillas, the Spanish Vegetarian Union, and communication firm The Vegan Agency.
The study provides a comprehensive overview of the industry’s economic development, noting both revenue growth and ongoing financial challenges amid intensifying competition.
In 2023, the plant-based sector in Spain solidified its position economically, with a 21% growth in the turnover range between US$100,000 and US$600,000.
This shows continued consumer interest and the expansion of new business models within the market.
Catalonia leads the country in plant-based enterprises, with Valencia now surpassing Madrid in the number of active businesses.
Andalusia also shows a notable increase in plant-based companies, signaling rising regional interest and an influx of investment opportunities.
Despite this growth, the report highlights a decline in the share of hospitality as the primary activity in the plant-based sector, dropping from 30% in 2021 to 22% in 2023.
This reduction is linked to the closure of some establishments and a shift toward diversified income sources.
Currently, 67% of plant-based businesses supplement their revenue with alternative channels to remain financially stable.
The report also points to a shift in business structures, with a drop in sole proprietorships over the past three years, from 40% in 2020 to 26% in 2023.
Many of these sole proprietorships are led by women, reflecting a trend of female leadership within the sector in Spain.
Competition is intensifying as mainstream companies introduce plant-based options in their product lines, making it harder for specialized plant-based brands to compete.
To address this, the Spanish Vegetarian Union advises certification to help these brands stand out in a crowded market.
Industry optimism has also declined, with only 20% of businesses viewing the future of veganism as “very favorable” in 2023, down from 45% in 2021.
Competition, bureaucracy, and limited consumer awareness remain key concerns for companies in the sector.
The Vegan Agency emphasizes that the sector’s sustainability will depend on effective communication and professionalization.
Outsourcing of communication has increased, with only 60% of businesses handling it internally in 2023, compared to 83% in 2021. This shift underscores the importance of communication in securing market position.
As the plant-based market in Spain grows, the report suggests a need for companies to balance ethical objectives with commercially viable strategies.
With new entrants and heightened competition, businesses are under pressure to innovate and differentiate.
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