Naturally Healthy Packaged Food in Argentina

PROSPECTS

Recession continues to hurt sales of naturally healthy packaged food

Like many areas of packaged food, in 2019 volume sales of NH packaged food were weakened by the ongoing economic recession and high rates of inflation. NH packaged food has the highest average unit price of all of the categories within HW packaged food and as such some consumers were forced to look for more affordable options at the end of the review period.

Fibre on the menu

Although recording a decline in retail volume terms in 2019, NH high fibre breakfast cereals is projected to see one of the strongest CAGRs over the forecast period, albeit from a relatively low base. The category received a boost in 2018/2019 with the launch of several new products.

High fibre pasta proving a success

NH high fibre pasta only appeared in Argentina towards the end of the review period, with Molinos Río de la Plata SA’s Matarazzo brand and Unilever’s Knorr brand being the two most significant players in this area. Matarazzo’s range is made whole wheat bran and has proven very popular with health-conscious consumers looking to add more fibre to their diet, but who also enjoy the convenience and good taste of pasta dishes.

COMPETITIVE LANDSCAPE

Arcor leads but competition hots up in NH cereal bars

In a highly fragmented category, Arcor SAIC remained the only company to hold a double-digit value share in 2019. This was down to its strength in NH cereal bars – the largest category within NH packaged food – and NH high fibre sweet biscuits with its popular Cereal Mix brand.

Increased education required if brands are to see a significant hike in sales

Local consumers do not have an extensive knowledge of the health benefits of naturally healthy packaged food. Companies did not invest significantly in advertising campaigns during the review period to highlight the benefits of these kinds of products, with most advertisements instead promoting the ingredients but not their benefits for the body.

Restricted budgets and changing perceptions see consumers turn to private label

With consumers faced with budget restrictions due to a drop in real income many consumers were forced to focus on price at the end of the review period. This benefited sales of private label products, which not only typically offer lower prices but which have also benefited from a change in consumer perceptions.

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