Mass consumption in Argentina collapsed 17% in 2024which meant its greatest setback in many years. However, with the decrease in inflation and a slight recovery of purchasing power, 2025 is presented with better perspectives, although still far from the levels prior to the crisis.
This was reflected by a report from Nielseniq (NIQ)leading consumer intelligence company. The work indicated that 78% of consumers declared having made purchases with greater care in essential products, while 65% chose to change brands recognized for cheaper options.
NiQ highlighted four phenomena that characterized the dynamics of consumption during the past year. They were:
1) higher services and transportation
The increase in household costs reduced the availability of money for mass consumption.
2) Search for Savings in Purchases
The preference for lower price brands, smaller formats and bulk purchase grew.
3) Rate of sales channels
Supermarkets recovered backward prices, but with a strong volume decline. The stores won participation, while self -services and kiosks saw a fall in their business.
4) Promotions and its own brands boom
34% of the volume of sales in supermarkets in the last quarter of 2024 was carried out under promotion, while their own brands reached their peak in the first half of the year.
Perspectives for 2025
By 2025, NIQ provides that the recovery of purchasing power will be improved, although in a limited way since the income of the Argentines would still be 40% below the last maximum of 2017. This recomposition occurs largely thanks to the deceleration in inflation, which has its side B in the increase in services, an element that Remove purchase capacity for other essential goods.
In parallel, the report stressed that the highest income segments will lead recovery in durable goods and services, while the lowest sectors will continue to prioritize basic needs. In addition, they marked that Buyers will maintain savings strategies and prefer more accessible options.
“The 2024 marked a turning point in mass consumption in Argentina, with a historical fall that hit all categories and sales channels. By 2025, although a partial recovery is expected, the Argentine consumer will continue to be strategic in their purchase decisions, prioritizing the cost-benefit ratio, ”he said Javier GonzálezNielseniq Argentina’s commercial leader.
Source: Ambito
