International Expansion: a Crucial Strategy for the Future of Canning

The Spanish canning industry has encountered significant challenges in recent years, predominantly due to a profitability crisis precipitated by instigating inflation and volatility in the costs of raw materials. Nonetheless, amid this intricate scenario, internationalization has surfaced as a key strategy to secure long-term growth and sustainability within the sector.

The Importance of Exporting

With the national market in decline due to a decrease in domestic consumption and price increases, canning companies have pivoted towards exporting as their main avenue for growth. Currently, more than 70% of the canned goods production in Spain is aimed at international markets, a percentage that has been steadily growing in recent years. This strategy has not only helped offset losses in the domestic market but has also strengthened the overall global competitiveness of the sector.

Market Diversification

One of the most notable features of the internationalization strategy is market diversification. Traditionally, the European Union has served as the main destination for Spanish canned goods exports, with countries such as Italy, France, Portugal, the Netherlands, and the United Kingdom accounting for 76% of the total overseas operations. However, the industry has started to uncover new opportunities in burgeoning markets like the United States, Middle East, and Asia.

The United States, specifically, has gained prominence by establishing itself as the fifth largest market in volume and the fourth in value for Spanish canned goods by 2023. This growth is attributed to the perception of canned fish as wholesome and ready-to-consume products, a trend that has been warmly welcomed in the American market. Several companies have already set up subsidiaries in the United States to handle their logistical and commercial presence.

Adaptation and Growth Strategies

The adaptability of canning companies has proven to be crucial for their success in international markets. Many have tweaked their product offerings to cater to the specific demands of these new markets. For instance, some have broadened their product range, while others have assumed direct marketing of their products in foreign countries. These direct strategies allow businesses to maximize their growth potential and solidify their position in the market.

Conclusion

Internationalization has proven to be an essential strategy for the survival and expansion of the Spanish canning industry in a challenging economic environment. Through market diversification, adaptation of their products to global needs, and fortifying their overseas operations, canning companies are not only mitigating the effects of the European inflation crisis but are also securing a bright future in the global marketplace. Therefore, international expansion is not only a crucial strategy, but a staunch commitment to the future of the canned goods industry.

Source: Alimarket