Navigating Spain’s FMCG Market for Sustainable Brands

If there’s one thing that’s clear in Spain’s fast-moving consumer goods (FMCG) market, it’s that sustainability is no longer just a passing trend – it’s here to stay. More and more consumers are focusing on the environment, and brands are feeling the pressure to step up their game. The result? Brands that commit to sustainability are gaining ground, and there’s no sign of them slowing down.

According to Kantar’s Sustainability Sector Index 2025, 22% of consumers worldwide are actively changing their habits to shop more sustainably. So, it’s not just a trend; it’s a reality that’s shaping the market.

Brands that successfully tap into this environmental awareness are carving out a niche for themselves, even when competing against the FMCG giants. Want to know more? Keep reading!

The competitive landscape in Spain for sustainable brands

Spain’s FMCG market is still dominated by big players like Mercadona, Carrefour, and Lidl, who are beginning to incorporate more eco-friendly practices into their strategies. However, the spotlight is increasingly on brands that have sustainability embedded in their DNA, such as Veritas and Herbolario Navarro.

This shift toward sustainability is being driven by a significant change in consumer behavior. According to Kantar’s “Who Cares? Who Does?” study, a growing segment of consumers known as Eco-Actives—those who consistently take actions to reduce their environmental impact—now accounts for 24% of the global population and represents a staggering $561 billion in spending. This data underscores that environmentally conscious consumers are increasing in number and hold significant purchasing power.

 

       Source: Kantar

 

Brands that successfully connect with this growing segment are making a name for themselves within retail spaces, thanks to innovation, transparency, and genuine marketing. 

The key to success lies in authentically engaging with the environmentally conscious consumer. While major players are adapting, emerging sustainable brands are taking the lead with clear messages and impactful practices, reshaping the competitive landscape of Spain’s FMCG market.

Key factors driving the success of sustainable brands

What do successful sustainable brands have in common? A few key factors are making the difference:

  • Product innovation: Consumers want products that do more than just meet a need – they want them to respect the planet. That’s why things like biodegradable packaging and eco-friendly ingredients aren’t just appealing – they sell.
  • Total transparency: It’s no longer enough to claim sustainability – you have to prove it. Brands that clearly communicate the origin of their ingredients and their production processes are earning consumer trust.
  • Authentic storytelling: Forget about catchy but hollow slogans. The most effective campaigns are those that tell real stories and demonstrate positive impact, like Veritas’ consistent messaging around organic and sustainable sourcing.
  • Legislation driving change: Laws are also pushing the shift. The Waste and Contaminated Soil Law, which came into force in 2022, is pressing for the reduction of single-use plastics. Coupled with consumer demand, this legislation is forcing brands to become more sustainable, like it or not.

Current trends and what’s next

Looking ahead to the future of sustainable FMCG in Spain, it’s clear that eco-friendly practices will continue to grow. Some trends are already here to stay:

  • Goodbye, single-use plastics: Eliminating single-use plastics is a priority, not just because of social pressure but also because regulations are getting stricter.
  • Local and conscious shopping: Consumers increasingly value local, proximity-based choices. Why buy something shipped from the other side of the world when there are more sustainable local alternatives?
  • Guilt-free packaging: Packaging matters – a lot. Compostable and reusable materials are setting the standard on store shelves.

 

What’s next? Technology is poised to play a major role, helping track the environmental impact of products and ensuring the transparency that consumers crave. We can also expect more collaborations between sustainable brands to share ideas and resources.

The FMCG market in Spain is evolving rapidly, and sustainability is no longer optional – it’s essential. To stay on top, brands must be authentic, innovative, and transparent. The Spanish consumer no longer settles for pretty words – they want action.

At Hola Spanish Market, we understand this shift and support sustainable brands in making their mark on the Spanish market. If your brand wants to be part of this movement, let’s talk! We’re here to help you stand out.