Executive Summary

Jul 2018
Prospects
The consumption of chocolate confectionery recovers in 2018

In 2017, for the fourth consecutive year, the consumption of chocolate confectionery decreased in retail volume terms. The poor performance of general consumption due to the complicated economic situation negatively impacted impulse categories in 2013-2017, and chocolate confectionery was no exception.

Cost increases and exchange rate devaluation impact prices

Over the review period, the average price of chocolate confectionery increased below general inflation, based on inflation growth rates estimated by economists and specialist consultants in the first year of the review period, given the low credibility of official statistics. Companies’ strategy has been to increase prices as little as possible to avoid deepening the decrease in volume sales.

Healthy products are still a niche but have high potential

The existing offer of HW chocolate confectionery is very limited and practically insignificant in Argentina. Over the review period, there were significant launches of rice-based products coated in chocolate, such as the Gallo brand by Molinos Río de la Plata SA in countlines.

Competitive Landscape
Arcor gains ground with its new products’ performance

Arcor SAIC strengthened its dominance of chocolate confectionery in 2018 due to its renewed product portfolio. The company has a broad variety of brands in the low- and mid-priced segments of all categories of chocolate confectionery and stands out with constant launches renewing its portfolio.

Other grocery retailers plays a key role in chocolate confectionery sales

Other grocery retailers is, by far, the most important sales channel for chocolate confectionery. This is explained because there are highly numerous kiosks nationwide.

Fierce competition in countlines

Countlines registered the best performance in retail volume terms over the review period. This was due to the strong competition in countlines since the launch of the famous Kit Kat brand by Nestlé Argentina SA in March 2015.

Prospects
Offering greater variety and new products is the main strategy to boost sales

Consumption of chewing gum is stagnant. The situation could be worse if not for the constant launches and innovations that are aimed to boost sales.

Children lose interest in bubble gum

Volume sales of gum continue to decline and seem not to reach a minimum level despite companies’ efforts to reactivate consumption. The main problem is that children’s interest in bubble gum has decreased as their preference for other impulse products has grown.

Other grocery retailers dominates sales of gum

Gum products are principally sold through other grocery retailers (the highly numerous kiosks) in Argentina. The second most important channel for gum is food/drink/tobacco specialists, which is followed by forecourt retailers, although the level of sales via the latter is very small compared with kiosks and food/drink/tobacco specialists.

Competitive Landscape
Two companies monopolise gum sales

Mondelez Argentina SA continues to dominate retail value sales of gum because of the long tradition of brands such as Beldent in sugar free gum and Bazooka and Bubbaloo in bubble gum. While Beldent has its origins in the 1980s, Bazooka dates back to the 1950s.

A new player in bubble gum

L’Heritier Argentina SA debuted in bubble gum with the brand, Pico Dulce, at the beginning of 2018. The brand has a long tradition in lollipops and has taken advantage of this to enter bubble gum as well as other categories such as pastilles, gums, jellies and chews.

A complicated horizon for gum consumption

Perspectives of gum consumption over the forecast period are not very encouraging. It is expected that sales of bubble gum will continue decreasing, unable to be offset by the anticipated growth in chewing gum.

Prospects
Interest in impulse products decreases amid the complicated economic context

Sales of impulse products strongly correlate to the economic situation in Argentina and sugar confectionery is no exception to the rule. In the review period, the difficult economic context had a negative impact on sales of sugar confectionery.

The health trend starts to play an important role in sugar confectionery

Consumers are becoming increasingly conscious of the benefits of consuming healthy products, and companies are launching different options to satisfy the demand for healthy sugar confectionery products. In August 2017, the dominant player, Arcor SAIC, launched Arcor Stevia in boiled sweets.

An emerging category to boost sales

Until late 2015, marshmallow confections, within other sugar confectionery, was completely unknown to the large majority of Argentinians. However, the product is a favourite among children and teenagers that have travelled abroad.

Competitive Landscape
Arcor dominates sugar confectionery sales

Arcor SAIC is, by far, the most important company in sugar confectionery in Argentina. It is one of the world’s leading producers of sugar confectionery.

Strong investment in marketing campaigns for new products

In 2017, investments in marketing campaigns played a key role in the communication of new products as well as a strategy to boost sales. Undoubtedly, Arcor SAIC is the company with the highest investment in publicity, notably for Mogul Marshmallow in other sugar confectionery.

Regulation of Law 26,396 could impact sugar confectionery sales

Several countries in the region, including Argentina, are analysing the possibility of limiting sales of certain products in kiosks, mainly those which are high in fat and sugar. In 2008, National Law 26,396 was approved.

Want to find out more about this report?
Request more information
Why buy this report?

Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.

Your Recently Viewed Reports

Confectionery in Argentina

Samples FAQs about samples

Delivery: Files are delivered directly into your account within a few minutes of purchase.

Overview

Discover the latest market trends and uncover sources of future market growth for the Confectionery industry in Argentina with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Confectionery industry in Argentina, our research will save you time and money while empowering you to make informed, profitable decisions.

The Confectionery in Argentina market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Confectionery in Argentina?
  • What are the major brands in Argentina?
  • With economic recovery far from guaranteed, are consumers cutting back on impulse and indulgence food items like confectionery?
  • How are manufacturers addressing consumer concerns over health and obesity?
  • What does the future hold for ethically sourced products?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Packaged Food market research database.

Chocolate Confectionery

Gum

Sugar Confectionery

Packaged Food in Argentina - Industry Overview

EXECUTIVE SUMMARY

Packaged food sales fall for third consecutive year
Promotions and discounts to maintain sales
Small companies take advantage of SanCor crisis
Other grocery retailers continue to gain ground
Recovery of packaged food sales expected

FOODSERVICE

Sales to Foodservice
Small companies supply large customers
Unpackaged food wins sales share
Sales of packaged food to foodservice fall again
Consumer Foodservice
Fast food wins customers
Value sales grow below rate of inflation
Encouraging horizon for consumer foodservice

CATEGORY DATA

Table 1 Foodservice Sales of Packaged Food by Category: Volume 2013-2018
Table 2 Foodservice Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 3 Forecast Foodservice Sales of Packaged Food by Category: Volume 2018-2023
Table 4 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2018-2023

MARKET DATA

Table 5 Sales of Packaged Food by Category: Volume 2013-2018
Table 6 Sales of Packaged Food by Category: Value 2013-2018
Table 7 Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 8 Sales of Packaged Food by Category: % Value Growth 2013-2018
Table 9 GBO Company Shares of Packaged Food: % Value 2014-2018
Table 10 NBO Company Shares of Packaged Food: % Value 2014-2018
Table 11 LBN Brand Shares of Packaged Food: % Value 2015-2018
Table 12 Penetration of Private Label by Category: % Value 2013-2018
Table 13 Distribution of Packaged Food by Format: % Value 2013-2018
Table 14 Distribution of Packaged Food by Format and Category: % Value 2018
Table 15 Forecast Sales of Packaged Food by Category: Volume 2018-2023
Table 16 Forecast Sales of Packaged Food by Category: Value 2018-2023
Table 17 Forecast Sales of Packaged Food by Category: % Volume Growth 2018-2023
Table 18 Forecast Sales of Packaged Food by Category: % Value Growth 2018-2023

SOURCES

Summary 1 Research Sources