Rice, Pasta and Noodles in Argentina

2020 IMPACT

Retail consumption of rice and pasta increases due to COVID-19 fallout

Overall retail volume sales growth for rice, pasta and noodles in 2020 is expected to be up on 2019, and well above the CAGR for the entire review period. This is due to increased consumption of rice and pasta – the dominant product types – since the beginning of the COVID-19 pandemic.

Noodles grows fastest in 2020 but remains a niche category

Among the three main product categories, noodles looks set to record the highest retail volume and current value growth rates for 2020 as a whole. This is mainly because sales are emerging from a very low base, as it is by far the smallest of the three and has historically been underdeveloped in Argentina.

Molinos Río de la Plata maintains commanding lead despite value share decline

Molinos Río de la Plata remains the clear leader in rice, pasta and noodles in Argentina. The company has long held the top position in both rice and pasta thanks to a broad portfolio that spans all price segments and offers well-established brands such as Gallo, Maximo, Matarazzo and Lucchetti.

RECOVERY AND OPPORTUNITIES

Retail and foodservice demand set to rise steadily in line with economic recovery

Rice, pasta and noodles is projected to see growth in overall retail volume sales slow sharply in 2021. This is mainly because consumers will start spending less time at home as the threat of COVID-19 recedes, particularly after distribution of the first vaccines begins in Argentina.

Health and wellness variants expected to gain ground in pasta

Changes in the dietary habits of Argentinian consumers have encouraged several pasta producers to add more health and wellness variants to their portfolios in recent years. This trend has been most visible in dried pasta, which saw leading companies like Molinos Río de la Plata and Unilever expand their offer of fortified/functional (FF) and naturally healthy (NH) high fibre products over the latter part of the review period.

Distribution gains projected for supermarkets, hypermarkets and e-commerce

Supermarkets and hypermarkets made steady value share gains in terms of rice, pasta and noodles distribution during the latter years of the review period, and this trend is expected to continue over the first half of the forecast period. The fact that major chains in these channels offer much wider assortments and more attractive prices than most other retailers will support gains for both, as will growing consumer acceptance of private label products.