Savoury Snacks in Argentina

PROSPECTS

Salty snacks continues to record positive, albeit slower, volume growth in 2019

Salty snacks registered a strong increase in volume sales in 2017 and 2018, with this followed by slower but still positive growth in 2019. The category’s ongoing steady development can be attributed to aggressive pricing policies from the leading players.

Health and wellness-positioned savoury snacks struggling to make any significant headway

Despite increasing health awareness in Argentina, health and wellness-positioned savoury snacks remained a small category in 2019. This area saw a number of new products launched over the review period, including rice snacks from Dos Hermanos, Natural Break nuts, seeds and trail mixes from Arcor and Twistos salty snacks based on rice and quinoa seeds from PepsiCo Snacks Argentina.

Distribution remains split between modern and traditional grocery retailers as the leading manufacturers focus on different channels

Other grocery retailers remained the leading distribution channel for savoury snacks in 2019 thanks to the vast number of kiosks present throughout the country, followed by independent small grocers and then hypermarkets. Overall, however, distribution remained fairly evenly split between modern and traditional grocery retailers.

COMPETITIVE LANDSCAPE

Arcor’s Bagley strengthens its lead in savoury snacks but some smaller companies are also doing well

Bagley Argentina, which is part of Arcor, remained the leading player in savoury snacks in 2019 thanks to its strength in savoury biscuits, in which it accounted for nearly one half of overall value sales. The company benefits from its longstanding presence in the country and a wide portfolio of products, which includes the savoury biscuit brands Traviatta, Criollitas and Serranitas as well as Saladix salty snacks.

Private label continues to gain share

Albeit still low, private label steadily grew its value share in savoury snacks over the review period, with this continuing in 2019. Private label’s gains can be primarily attributed to its lower prices per kg when compared with branded products, with pricing being a key issue for consumers during periods of economic turbulence.

Rice snacks benefiting from rising health awareness and the launch of new products

The rice snacks category emerged in Argentina only in 2016. Recording triple-digit volume sales growth that year, the category then suffered a slight blip in 2018 before returning to growth in 2019.

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