In 2021, sales of baby food are set to see an ongoing decline decreasing in volume, although the rate of fall is will be slower than that seen in 2020. At the height of the pandemic in 2020, volume sales fell sharply as housebound consumers chose to substitute processed baby food products for home-made options.
Other baby food is the only product to see positive volume growth in 2021. This reflects the fact that it is still a new, niche set of products and is emerging from a comparatively low base.
The sharp fall in consumer spending power that has led many parents to substitute baby food for cheaper options like cow’s milk or home-made food has pushed many producers into finding new ways to cut production costs and pass the savings onto their customers. Nutricia-Bagó SA, for example, has launched its Nutrilon brand in a plastic pouch as more economic option for consumers.
The pandemic drove a sharp rise in baby food sales via e-commerce channels in 2020, a trend that has continued in 2021, and one that is forecast to continue strengthening over the forecast period. However, sales via health and beauty specialist retailers remain the largest part of distribution, and have also strengthened in 2021.
Despite the anticipated relaxation of restrictions on movement and social distancing, most leading producers believe that sales recovery in volume terms will be very slow. In part this is a result of the country’s struggle to emerge from the economic impact of COVID-19 and an apparent inability to manage inflation, but there is also a cultural shift in Argentina in relation to baby food.
In Argentina, baby food remains dominated by multinational companies thanks to the strength of their brands and a typically aggressive marketing strategy. Although local producers have been important in categories such as other baby food, Tommys Foods SRL is losing share after Nestle launched its Gerber Biscuits in 2021.
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Understand the latest market trends and future growth opportunities for the Baby Food industry in Argentina with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
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This report originates from Passport, our Baby Food research and analysis database.
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