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Mass consumption shows signs of recovery, but social gaps persist

Mass consumption shows signs of recovery, but social gaps persist
Consumption

Amid an economy still plagued by instability, mass consumption in Argentina began to show signs of recovery during the first two months of 2025. This is revealed by the latest Shopper Day report, prepared by the consulting firm Kantar , which indicates that six out of ten market categories surveyed showed an improvement in sales volume compared to the same period last year. However, the recovery is still uneven: socioeconomic status continues to make a difference in what reaches the grocery stores.

Among the products that led the rebound were hair treatments, mouthwashes, margarines, and low-fat yogurts, all items that had been hit hard in recent quarters . According to the report, three out of four categories that grew in sales also added new households, and 40% expanded their basket size. At the same time, 36% increased their purchase frequency. Even so, 60% of the market has yet to recover its previous consumption levels.

One of the report's key aspects was how households redefined their consumption habits. Faced with incomes that don't always keep pace with prices, 65% of families prioritized taking advantage of discounts and promotions, 45% opted to give up their usual products, and 27% stopped buying certain brands altogether. Planning and controlling spending became the norm in most households.

Concerns also shaped this new way of consuming. Half of those surveyed stated that their main challenge is stretching their budget in the face of rising prices. Meanwhile, 24% cited the need to increase their income, and another 21% cited difficulties paying off debts or purchasing basic foodstuffs.

Despite the context, the study revealed an encouraging finding: 42% of households expect their financial situation to improve over the next twelve months. This moderate, yet positive, perception suggests that consumers could maintain a cautious spending strategy but with optimistic medium-term projections.

According to Esteban Cagnoli , Managing Director of Kantar Worldpanel Argentina, the leading brands have begun to regain ground, especially among the mid- and high-end segments. Although they continue to compete with more affordable options, their return reflects a slow restructuring of consumption patterns that had been relegated after months of sharp adjustments.

— Kantar Latin America (@KantarLatam) December 9, 2024

However, the gap persists. While 79% of the categories showed growth in the high and middle socioeconomic levels, only 5% managed to do so in the lower socioeconomic segment. This data reveals that, although there is an incipient recovery, not all Argentines are participating in this process.

The report emphasizes that mass consumption does not behave as a homogeneous unit. Relative price stability facilitated the return to certain products, but it did so unevenly, accentuating differences that had already been evident since last year. Argentine consumers, caught between austerity and a desire for improvement, are redefining their choices with a more rational logic, adapted to the circumstances, but with expectations that are beginning to revive.

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