The place where tradition and innovation coexist | The power of business

Carmencita

Jesus Navarro Alberola General manager

Centenary family business located in Novelda, Alicante, now in its third generation. Leader in the manufacture and sale of spices, seasonings and condiments.

Moa Foodtech

Bosco Emparanza CEO and Founder

Navarrese “start-up” created in 2020 which transforms by-products from the food industry into ingredients with high nutritional value suitable for consumption.

Carmencita has been seasoning Spanish recipes with her condiments for a century. Moa Foodtech was born five years ago with the proposition of transforming food waste into new ingredients with high added value. Their different trajectories and specializations are an example of the great variety of companies in the food sector, the most important in the Spanish economy; It represents almost a quarter of manufacturing activity and is one of the most strategic, because the food supply of the almost 50 million citizens who reside in Spain depends on it.

Moa Foodtech symbolizes innovation and the search for sustainable solutions in a company that consumes many resources and generates a large amount of waste. “We use artificial intelligence and biotechnology to create products that meet the needs of an increasingly populated world and that help reduce the waste we produce,” says the company’s founder, Bosco Emparanza, in the video that opens this text, the fourth chapter of The power of businessa project of Banco Sabadell. There he speaks with Jesús Navarro, responsible for marketing de Carmencita, and third generation at the helm of the company, which supports the idea of ​​Emparanza: “One of the main challenges of this industry is not the lack of resources, but the need to adopt different technologies that allow us to extract greater value from what we already have,” he explains.

The conversation between the heads of these two companies serves to explain the challenges this sector faces in feeding (and drinking) us all.

The Spanish food industry has a very strong position in the manufacturing sector and, in general, in the economy. It enjoys a great tradition, international prestige and is distinguished by its capacity for innovation. It represents almost 3% of the national GDP and 22% of the Spanish industrial GDP, making it the largest in the manufacturing sector.

SMEs and VSEs dominate, many of them are family members. Of the 27,896 companies that make up the sector, 77% have fewer than 10 employees. They coexist with large multinationals like Nestlé, Campofrío or Danone. Furthermore, the commercial fabric has 416 start-upcompanies that develop innovative products and services, a group called food technology.

Employment in the sector shows an upward trend. It employed 474,600 people at the end of 2024, an increase of 2.3% compared to the previous year. It also represents 20% of industry employment and its female employment rate is higher than that of the rest of the manufacturing sector. The human resources consultancy Randstad highlights the ability of these companies to generate a high percentage of permanent contracts and to reduce temporary contracts.

A permanent demand. This sector of essential goods has the advantage of maintaining its activity, even if profound changes occur in the economy, such as crises and recessions. Foods typically experience inelastic demand, meaning consumers continue to buy them even if the price changes. Instead of stopping buying them, consumers are looking for products that are cheaper, white label, or have a longer shelf life (like canned or frozen).

Exports are increasing. Trade in Spanish products abroad almost doubled between 2014 and 2023. In total, 17% of exports correspond to food and drink products, demonstrating the success of the internationalization of products linked to Spanish cuisine.

Evolution of exports in the agri-food sector

In millions of euros

Source: Ministry of Agriculture, Fisheries and Food

Economic engine of rural Spain. Companies in this sector are present in 70% of municipalities in so-called empty Spain, according to the Spanish Federation of Food and Beverage Industries (FIAB). Which clearly shows its role as an economic and social engine in rural areas.

High level of technology. In 2024, Spain has consolidated itself as the third country in Europe with the highest number of industrial robots, surpassed only by Germany and Italy, according to the International Federation of Robotics (IFR). Food and beverage stood out in 2024 as one of the areas where these solutions were most widely adopted. Currently this sector represents 10% of industrial robot installations.

Wide range of quality products. The industry produces and processes foods in virtually every category demanded by today’s market, from basic products to the most exclusive, called premium. And it stands out for its quality. In addition, Spain is the third country in the European Union with the highest number of designations of origin, which provides added value to many national products and influences the positioning of the Spanish brand in the world.

Rejuvenate the workforce. The sector is aging without the corresponding generational change. People over 45 already represent 49% of employment, according to Randstad. This is because many factories and farms are located in rural areas where the offer of services and professional opportunities for couples are more limited.

Adapt to new sustainability requirements. The pressure to reduce environmental impact and optimize productive resources is greater. A new generation of consumers is changing the rules of the game. They are demanding to extend the useful life of products, to offer more varieties or more sustainable packaging, according to a study carried out by the Association of Manufacturers and Distributors (Aecoc).

Respond to new consumption habits. Consumer demand for gluten-free, lactose-free, sugar-free, functional, vegan or organic products is forcing manufacturers to adapt their activities to new forms of production and manufacturing.

Strengthen the innovative ecosystem. The number of start-up growth of the sector, last year they increased by 5% compared to the previous year, but investments fell by 31.3%. This drop is due to a transfer of interest from investors towards start-up dedicated to AI, according to the ICEX report.

Combat dependence on the external market. International crises, wars or customs tariffs have an impact on exports. During his first term as President of the United States, Donald Trump increased tariffs on green olives and olive oil to 25%, which posed a problem for Spanish producers who saw their sales drop.