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The Spanish Agri-Food Sector Increases its Added Value by 3.9% in 2024 to €125.16 Billion—Contrasting with an Average Decline of 2.9% in the EU-27

Cajamar and the Ivie present the 2024 Report of the Observatory on the Spanish Agri-Food Sector in the European context in Madrid

Cajamar presented the 2024 edition of the ‘Observatory on the Spanish Agri-Food Sector in the European context’ at an event held in Madrid. The presentation featured the participation of Cajamar President Eduardo Baamonde; Ana Rodríguez, Secretary General for Agricultural Resources and Food Safety at the Ministry of Agriculture, Fisheries and Food; Joaquín Maudos, Deputy Director of Research at Ivie and coordinator of the report; and Ignacio Atance, Director of Studies and Publications at the Cajamar Group Foundation.

Joaquín Maudos outlined the main findings of the report, emphasizing the 3.9% growth in gross value added (GVA) contributed by the agri-food sector to the Spanish economy, reaching €125.16 billion in 2024. This sharp increase—0.7 percentage points above the total for the economy as a whole—contrasts with the 2.9% decline recorded across the EU-27. Thus, Spain maintains its position as the fourth-largest agri-food economy in the EU-27, generating 12.3% of the sector’s total GVA.

The strong performance in 2024 is largely driven by an 8.3% increase in GVA in the primary sector, which offsets the more modest growth in the food and beverage processing industry (2.7%) and the agri-food product marketing (0.1%). Collectively, the three subsectors that make up the Spanish agri-food industry (primary, industry, and marketing) will account for 8.6% of Spain’s GDP and 11.5% of employment in 2024, generating a total of 2,510,035 jobs, 1.4% more than the previous year. Nearly half of these jobs are concentrated in marketing, while 30.5% in the primary sector (agriculture, livestock, and fishing) and 19.8% in the food, beverage, and tobacco industry.

In 2024, workers in the agri-food sector accounted for 11.5% of total employment in the Spanish economy. Despite this significant contribution, the report highlights several structural weaknesses, such as the underrepresentation of women: only 31.3% of jobs in the primary sector and the food and beverage processing industry combined are held by women, compared to 46.4% of the total economy. Another challenge is generational renewal: 37.6% of workers  in the agri-food sector in Spain (excluding trade) are aged 50 or over, a percentage that rises to 40.5% in the EU-27.

Export Strength

A defining feature of the Spanish agri-food sector is its importance as a pillar of national exports. In 2024, the agri-food sector reached a new all-time high by increasing its foreign sales by 5.9%, to €76.356 billion. Unlike the previous year, this growth was driven primarily by an increase in the volume of products exported (4.4%) rather than a rise in prices.

With these overall figures, the agri-food sector accounts for 19.5% of Spain’s total goods exports, one percentage point more than in 2023, and the highest share among exporting economies in Europe. Spain also consolidates its position as the fourth-largest exporting economy in the sector within the EU-27, achieving a trade surplus of €18.776 billion in 2024, which is 19.9% higher than the previous year. This is the second-highest surplus in the EU-27, followed only by the Netherlands, with Poland in third place.

The main market for Spanish agri-food products continues to be the EU-27, accounting for 67% of exports. France (15.2%), Germany (11.3%), Italy (10.5%), and Portugal (10.4%) represent nearly half of these sales. Outside the EU, the United Kingdom stands out with a 6.7% share. While, the United States continues to gain ground as the second largest non-EU destination, due to China’s continued loss of market share.

Fruits and nuts are Spain’s top agri-food export product, accounting for 14.7% of total exports in 2024. On the import side, fish, crustaceans, and mollusks remain Spain’s leading products, accounting for 12.8% of total purchases abroad.

More productive and competitive

In 2024, the Spanish agri-food sector was 14.4% more productive than the EU-27 average, a figure that rises to 41.9% when trade is excluded. This high productivity translates into greater competitiveness, with labor costs per unit of GVA 19% lower than those of its European counterparts.

Among the three agri-food subsectors, the primary sector continues to stand out in terms of competitiveness compared to the EU-27, with labor costs per unit of GVA 56% lower. The industry is also 19% more competitive than its European counterpart, while marketing is 24% less competitive. Compared to the EU-14, Spain’s agri-food sector maintains its edge, with labor costs per unit of GVA 18% lower. Spain ranks fourth in competitiveness among EU-27 and EU-14 countries, leading the classification in the specific case of the primary sector. It also holds a strong position in the food and beverage industry, with the fifth-lowest labor costs per unit of GVA.

The Challenge of Increasing R&D Investment

Business investment in R&D, one of the key factors that can lead to improved productivity and competitiveness, grew by 5.8% in 2024 after two consecutive years of decline. However, despite this growth, its share of total business R&D investment in Spain remains low at only 3%, 0.2 percentage points less than in 2023. The investment effort (percentage of investment in GDP) of the Spanish agri-food sector remains below that of the EU-27, standing at 0.55%, compared to the EU-27 average of 0.8%. However, our country leads the implementation of projects within the EU-CAP Network forum in 2024, with a total of 244 projects out of the 973 developed in the EU-27. In addition, Spain remains in seventh position in the EU-27 with the highest investment in FoodTech startups, with a 13% increase in 2024.

Throughout 2024, the growth rate in food and beverage prices was contained, leaving behind the high inflation rates of the previous two years. The annual inflation rate closed at 1.8% in December 2024, compared to 7.3% in 2023 and 15.7% in 2022. Taking into account both prices and the purchasing power of the population, nearly all the goods in the household shopping basket are cheaper in Spain than in the EU-27 as a whole, except for non-alcoholic beverages, which are 1.6% more expensive. Spanish households allocated 19.6% of their total spending to food and beverages in 2024, 1.2 percentage points more than in the EU-27 average. Per capita spending on food and beverages in Spain reached €2,510 in 2023, 13% below the EU-27.

According to Joaquín Maudos, director of the report, “the data confirms once again the strong performance of the Spanish agri-food sector within the EU, as well as its vital role in generating wealth (GVA and employment) in Spain. Its high competitiveness enables it to create value at lower costs than its European competitors, with the primary sector standing out as the most competitive in the EU-27. Thanks to this high competitiveness, it is able to increase its exports year after year.” In addition, he adds that “the sector faces several challenges: structural (small company size and an aging workforce), economic (improving profitability, retaining and attracting talent), environmental (ensuring sustainability), and social (meeting increasingly sophisticated consumer demands, especially those related to environmental concerns).