In recent years, volume sales of cooking ingredients and meals have been struggling in the face of rising costs and prices due to the inflationary global environment as well as more localised problems, such as the frequent loadshedding in South Africa or currency devaluations. However, positive volume growth was seen at a regional level in 2024, with performances expected to improve in the coming years as inflation eases and economies recover.
This report comes in PPT.
Although an improving economic backdrop helped drive healthy growth in Brazil in 2024, the recent inflationary environment has served to increase polarisation, with more affluent Brazilians whose purchasing power has remained unaffected still willing to pay for more expensive products, but lower-income consumers tending to choose economy options.
The ongoing trend towards healthier products could be seen in Mexico in 2024 as olive oil, viewed as the healthiest variant in edible oils, with its benefits attributed to its antioxidant and anti-inflammatory properties, was recording growth in 2024, at the same time as overall edible oils sales were in decline in volume and real value terms.
The new government in Argentina, in place since late 2023, has lifted import controls and scrapped the Precios Justos programme, which artificially held down prices of certain products and brands, generally sold through supermarkets/hypermarkets. This represents an opportunity for private label, which can now compete fairly on prices with branded products.
While retail e-commerce continues to gain share, it remains only a minor channel in cooking ingredients and meals in Latin America, with small local grocers the leading mode of distribution, just ahead of supermarkets. Warehouse clubs continued to gain ground in the Brazilian market in 2024.
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