“The demand for baked goods in Argentina is majorly driven by the tradition of consuming freshly baked goods on a daily basis. The majority of the Argentinian consumers prefer locally-available, fresh, unpackaged baked goods to the branded ones. The freshness and the low price of unpackaged baked goods are driving the sales of baked goods in Argentina, according.”
Argentina is the second largest country of Latin America, just after Brazil, at 2.78 million km2, and the fourth most populous with a population of 44 million people. With a Gross Domestic Product (GDP) of approximately US$400 billion, Argentina is one of the largest economies in Latin America.
Argentina is a resource-rich country with enormous potential for development. It is a leading food producer with large-scale agricultural and livestock industries. The South American country is the world’s top exporter of processed soy, world's No. 3 for corn exporter and a major wheat supplier.
It is a leading food producer with large-scale agricultural and livestock industries. Argentina's main crops include soybeans, indigenous cattle meat, wheat, maize, whole fresh cow milk, grapes, indigenous chicken meat, sunflower seed, sugar cane and apples.
There has been significant growth in crop production, particularly cereals and oilseeds, over the last 30 years in Argentina. This growth has been driven not only by improvements in productivity for the main crops (i.e. soybeans, maize and wheat) but also by an increase in land devoted to cereals.
Argentina seems to be a prolific land for baked goods. With all its attractive pastries and baked confectionery items, the South American country offers a wide range of culinary attractions.
The demand for baked goods in Argentina is majorly driven by the tradition of consuming freshly baked goods on a daily basis. The majority of the Argentinian consumers prefer locally-available, fresh, unpackaged baked goods to the branded ones. The freshness and the low price of unpackaged baked goods are driving the sales of baked goods in Argentina, according.
Argentinian consumers also prefer spicy flavored baked goods. For instance, empanadas, one of the country’s favorite baked goods, are mostly consumed with a spicy beef stuffing mixed with other natural herbs and spices. The majority of bakeries in Argentina use locally available fresh ingredients, such as dried herbs and spices, as toppings in various baked products.
The Argentinian baked goods market has been witnessing significant transformation, owing to a number of innovations, over the past few years. Manufacturers operating in the baked goods market are taking up various new ways of producing and processing baked goods. For instance, they are adding new ingredients to traditional products to improve the products’ nutritional value. Manufacturers are also adopting various new approaches, such as reformulating baking techniques and expanding product offerings by including local favorites, to garner consumer attention.
The demand for innovative baked goods is increasing in the country, which is encouraging manufacturers to offer high-end and organic products. Also, local manufacturers have expanded their offerings by including whole grain and gluten-free products, which are highly appealing to consumers. This also helps them thrive in a highly competitive landscape.
The Argentinian food market is undergoing constant evolution, as various new trends are influencing the eating habits of consumers in the country. There is a growing demand for non-GMO foods among Argentinian consumers, owing to increasing awareness about the health benefits of consuming these foods. In order to address the growing consumer demand, producers are increasing the supply of various types of non-GMO food products.
Additionally, the growing health-consciousness among the Argentinian consumers is creating demand for natural and healthy ingredients. Protein-rich food products are also gaining popularity, owing to the health benefits associated with protein consumption. The reduced rate of carbohydrate intake is another health-related trend, which is driving the demand for low-carb food products in the country. The trend of clean eating has led to a growing demand for less-processed and healthier food products. People are increasingly opting for food products made of natural or unprocessed fats, which are considered important ingredients of a healthy diet.
The Argentinian baked goods market is primarily driven by the high demand for nutrition-based convenience food products. Consumers are increasingly shifting to healthy food products, particularly those with low trans-fat and low fat, and are non-GMO, gluten-free, and organic. This provides an impetus to manufacturers to focus on producing baked goods according to consumer preferences. Certain sections of the population prefer authentic traditional bakery products such as empanadas and medialunas, which increases the popularity of such bakery products and contributes to the growth of the Argentinian baked goods market.
The South America bakery products market is segmented by product type into cakes and pastries, biscuits & cookies, bread, and morning goods. According to the research, some of the most popular baked good (savory and sweet) products in Argentina are:
Empanadas are available with both sweet and savory stuffing. Sweet empanadas are filled with quince jam and sweet potato paste or dulce de leche and are sprinkled with cinnamon, sugar, or sweet raisins. Savory empanadas, on the other hand, are stuffed with stewed and spiced ground beef, chicken, goat, cheese, and/or vegetables.
Medialunas: Medialunas are the most popular Argentinian pastries. They are similar to French croissants but are sweeter and doughier.
INCREASING DEMAND FOR BREAKFAST PRODUCTS
The morning goods segment is showing more positive growth with the decline of the bread segment. A key driver for current thinking and behavior in the category is anchored around health. Consumer purchasing behavior is changing, and consumers are preferring on-the-go morning goods more, as they spend less time at home sitting down to the first meal of the day. There is a growing demand for premium morning goods options, which are often wholemeal or granary and seeded. But, since these products are priced high, not all opt for these. Furthermore, frequent launches of new enhanced and fortified products under this segment has further fueled the market. Nearly two-thirds of the new launches in the morning goods segment have been the retailers’ own-label products.
The Argentine dry pasta market recorded a 30% positive compound annual growth rate (CAGR) in the 2014-2019 period, with a sales value of 23,702.44 Million Argentine Peso in 2019, an increase of 31.98% compared to the previous year.
The dried and instant noodle market in Argentina recorded a positive CAGR of 36.19% in the period 2015-2020, with a sales value of 434.84 million Argentine pesos in 2020, 42.23% compared to 2019. It increased. The market has reached its strongest level. The noodle market grew by 53.00% in 2019 compared to the previous year.
RECORD WHEAT PRODUCTION
Wheat is also one of the main commodities exported by the South American country. Argentina is the world's seventh-largest wheat exporter. Argentina's 2021/22 wheat production is expected at a record 20.3 million tonnes, the Buenos Aires Grains Exchange said, citing better than expected yields as the reason for increasing its previous 19.8 million tonne estimate.
ARGENTINA TO SUBSIDIZE FLOUR TO LOWER BREAD PRICE
The Argentinian Government announced that it will subsidize flour mills to lower the prices of bread and other wheat flour-based products. It is stated that, due to the rapidly increasing inflation, the government is also working on other measures to prevent price increases in the country.
"We are creating a mechanism to guarantee that there will be no shortage of bread on the table of the Argentinians," said Matías Kulfas, Argentinian Production Development Minister. Minister Matías Kulfas announced that the sharp increase in the prices of wheat in the international and domestic market after Russia started war against Ukraine forced the Government of Alberto Fernández to take such a measure.
Specifically, the government decided to create a trust to stabilize the price of wheat, whose main purpose was to subsidize mills, so that agricultural producers would charge for the flour they sell to the industries, without affecting the high price they pay for the grain. The government aims to bring the bread prices to those of February, when the war had not yet started.