According to the latest report from NielsenIQ (NIQ), mass consumption in Argentina experienced a contraction of 17% in 2024 compared to the previous year, marking the largest drop in years. This decline was influenced by factors such as lower inflation and a slight improvement in the population's purchasing power. Despite the difficulties, a partial recovery is expected in 2025, although it will not reach the levels prior to the crisis.
During the past year, Argentinians adjusted their purchasing habits, prioritizing savings and seeking more economical alternatives. 78% of consumers reported being more careful with their purchases of essential products, while 65% chose more affordable brands instead of recognized ones.
Among the trends that defined consumption in 2024 were the increase in household costs, which reduced the availability of money for mass spending, the growing preference for lower-priced brands and smaller formats, as well as a realignment in sales channels. Supermarkets saw a recovery of lagging prices but with a decrease in volume, convenience stores gained market share, and self-service stores and kiosks experienced a decrease in sales.
Regarding expectations for 2025, while a recovery of purchasing power is anticipated, it will remain below previous levels. Although inflation tends to decrease, the impact will be uneven, with certain sectors benefiting more than others. Disparate growth is expected among different socioeconomic levels, where higher-income segments will lead the recovery in durable goods and services, while lower-income sectors will continue to prioritize their basic needs.
Despite the Consumer Confidence Index reaching its highest point in nine years in January 2025, it is expected that shoppers will maintain saving strategies and continue to prefer more affordable options. Javier González, commercial leader of NielsenIQ Argentina, commented that the year 2024 marked a critical point in the country's mass consumption, with a historic drop that impacted all categories and sales channels.
