Sweet Spreads in Argentina

PROSPECTS

Jams and preserves offers potential for growth

Sweet spreads, like many packaged food categories, recorded a decline in retail volume sales in 2018 due to a drop in consumer purchasing power. Nevertheless, sweet spreads still has the potential to grow over the forecast period, mainly due to natural products slowly becoming a more accessible alternative for consumers.

Spreadable processed cheese becoming a key competitor to sweet spreads

Spreadable cheese has become a key competitor to sweet spreads. Consumers perceive these products to be a healthier alternative with fewer calories.

Low consumption of honey despite Argentina being one of the world’s main producers

Per capita consumption of honey in Argentina remained very low in 2018, with this situation unlikely to improve significantly over the forecast period. According to industry sources, there is no tradition for eating honey at breakfast time or as a snack in Argentina, despite the fact that it is one of the main producers of honey in the world.

COMPETITIVE LANDSCAPE

Imported brands face a difficult future

With the removal of obstacles to imports since 2016, imported brands such as Chantaine and St Dalfour began to be sold again in the country, having previously practically disappeared. However, sharp devaluation of the local currency and a fall in real wages in 2018 had a significantly adverse effect on imported brands.

Arcor remains the clear category leader

Arcor remained the clear leader in sweet spreads in 2018 thanks to offering a variety of brands in different price segments. Its La Campagnola brand is positioned in the high priced segment and Arcor in the mid-priced segment, while Noel and Dulciora have an economy positioning.

Ferrero Argentina leads chocolate spreads

The elimination of barriers to imports has allowed Ferrero Argentina to import its traditional Nutella brand without facing any restrictions. This helped chocolate spreads to record the best performance in retail volume terms in 2018.

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