Mass consumption in Argentina continues to decline, with a decrease of 17.1% compared to the previous year, according to a recent report by The Nielsen. Javier González, commercial director for Uruguay, Argentina, Bolivia, and Paraguay, highlighted that all sales channels closed with negative numbers in the last two months, including supermarkets, self-services, and neighborhood stores.
Regarding price increases, González explained that while some were lower than the Consumer Price Index (CPI), the loss of purchasing power remains significant for the average consumer. Comparing the current situation to two decades ago, he mentioned that per capita consumption resembles that of 2004 or 2005, reaching a minimum level from which no near recovery is anticipated.
The report also highlights that, unlike previous crises, no quick recovery of mass consumption in Argentina is expected. Supermarkets report a variation of -22%, while stores and kiosks register declines of 11% and 16% respectively, reflecting a particularly notable contraction in the beverages and food sector.
According to González, the decrease in food and beverage consumption has remained stable around 17%, influenced by the general price increase in other areas such as transportation and essential services. Consumers have begun to opt for more economical alternatives, reducing the demand for premium brand products and seeking more affordable options.
Inflation in mass consumption products has experienced a significant increase in the last year, partly attributed to the removal of price controls. In September, the year-on-year inflation in the Nielsen basket reached 284%, surpassing the general inflation rate of 209%.
The current situation reflects a scenario of stability in consumption levels, with no signs of a forthcoming rebound, where consumers face economic difficulties that directly impact their purchasing decisions.
