Consumption of frozen pizza and frozen ready meals has been falling for several years in Argentina. This is mainly due to heightened budget-consciousness arising from the country’s deep-seated economic problems, as these product types are comparatively expensive and perceived to offer poor value for money.
While independent small grocers remains the leading distribution channel for ready meals in retail value sales terms, its overall share in the category is expected to decline in 2020. Since the outbreak of COVID-19 in Argentina, many consumers have been inclined to avoid these types of outlets in favour of supermarkets and hypermarkets, which allow for greater social distancing and are considered more likely to observe strict health and safety protocols aimed at reducing potential exposure to the virus.
Molinos Río de la Plata looks set to consolidate its already commanding lead in ready meals with a robust value share gain in 2020. The company’s competitive pricing strategy has enabled it to weather the negative economic impact of COVID-19 better than many rivals, while the fact that its sales are concentrated in dried ready meals – the strongest performer among the main product categories – will also contribute to its gain.
Ready meals retail volume sales are expected to rebound strongly in 2021. Recovery will be underpinned by the anticipated easing of the COVID-19 pandemic, which should become more pronounced over the latter half of the year as distribution of the first vaccines begins in Argentina.
While ready meals looks set to show an improved performance over the forecast period, it will remain a relatively minor category in Argentina, for a number of reasons. Most notably, the fact that these products are widely considered to be expensive and offer poor value for money as compared to home-cooked meals will continue to restrict demand, as most Argentinian households will still face significant budgetary constraints despite expectations of a more favourable macroeconomic climate.
Molinos Río de la Plata’s strong lead in ready meals is unlikely to be challenged over the forecast period. The company looks set to remain dominant in dried and frozen ready meals thanks to the success of its Gallo and Matarazzo brands, both of which are widely distributed, available in multiple flavour variants and benefit from longstanding reputations for offering good quality at a reasonable price.
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Understand the latest market trends and future growth opportunities for the Ready Meals industry in Argentina with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Ready Meals research and analysis database.
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