This paper evaluates the potential impact on the competitiveness of the Spanish Agri-Food Industry (AFI) of the economic strength of the two most important territorial factors that impact its development, namely the sector(s) of activity and the region(s) of operation within which each AFI enterprise operates. The importance of studying such topic centers on a two-part rationale, namely (i) the central role played by competitiveness in the survival, growth and profitability of any firm; and (ii) the pivotal position of the AFI within the manufacturing sector, as well as its proximity to the agricultural sector of the economy. The method of analysis adopted for these purposes is based upon the concepts of α and β convergence and upon shift-share analysis. As a final conclusion, it may be stated that the territorial development of the AFI does not tend to converge. Hence, it is necessary to study the specific regional and sectorial strategies that have been developed to carry out the competitive position of the AFI.