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Quick Stats

Quick Stats

Organics Dashboard From Passport

  • Las Brisas SA leads the organic segment in Argentina with a value market share of 20.2%, followed by Maoar SRL with a share of 15.1%.
  • The market for organic products in the country is currently fragmented, with a major share for “others”. Branded organic packaged food and beverages are struggling to gain share, partially due to the ongoing economic recession and the lack of consumers’ awareness about organic products.
  • Organic products are currently purchased by high-income individuals, creating a low volume customer base and limiting accessibility to specialty stores and selective supermarkets.

  • The market for organic products in Argentina reached a value of US$13.9 million in 2019, representing 0.31% of the global market value with a per capita consumption of US$0.3.
  • High levels of inflation as a consequence of the economic recession have led to value increases while volumes are unstable.
  • The market is expected to continue its strong value growth, with a forecast CAGR of 32.8% for the period 2019-2024.

 

Qualitative Analysis

Qualitative Analysis

Quick Facts
  • The total value sales for organic packaged food and beverages in Argentina reached US$13.9mn in 2019, registering a Y-o-Y growth of approximately 29.0% over 2018-2019. While value growth was driven by high rates of inflation following the 2019 recession, volume sales remained low.
  • Value growth of organic foods has been positive but limited. A significant factor for this is the recession limiting consumer expenditure on groceries, leading to primarily the high-income consumers only buying organic products.
  • Considering Argentina’s power as a producer, the government is keen to educate the population on health and sustainability, which could raise the contribution of agriculture to the economy, as well as economic recovery itself. To increase awareness for organic products, the Ministry of Agroindustry in Argentina invested in conducting several events such as Organic Food Week, which is an exhibition and cooking classes from renowned chefs.
Market Trends
  • Currently, in Argentina, organic packaged food is driven by organic honey, registering a current value growth of 48.0% in 2019. Within organic beverages, the most dynamic category is organic 100% juice, registering a current value growth of 32.0% in 2019.
  • Value Sales for organic dairy and edible oils increased by 31.0% and 35.0% respectively, while organic baby food witnessed a decline of around 30.0% in 2019.
  • The lack of new sales channels for organic packaged food has allowed supermarkets to remain the primary channel, with a share of 37.0% in 2019. This limited restriction is primarily a consequence of limited consumer knowledge and high unit prices.
Competitive Landscape
  • Organic food in Argentina is popular, with over 1,500 companies offering organic food products. However, the majority of production is for unpackaged food, particularly for fresh fruits and vegetables.
  • Nutribaby SA remained the leader for organic packaged food in Argentina, despite a drop in share due to the recent expansion of Nestlé Argentina SA’s range of organic baby food.
  • In beverages, local players such as Purificare and Natuvid have gained substantial ground on the back of lower-priced offerings compared to leading brands.
Prospects and Growth Opportunity
  • The rising e-commerce and the eventual recovery of the economy combined with growing consumer interest are expected to support demand for organic packaged food and beverages in Argentina, with the category expected to grow at a value CAGR of 34.3% for the period 2020-2022, reaching around US$37mn by 2022.
  • Argentina ranks second in the world for certified organic surface[1], allowing for a significant amount of land for production of organic crops such as corn, pears and peanuts. That being said, only 1% of the production is used for domestic demand, and the rest goes for exports, particularly to the USA. Additionally, the expected entry of new players in packaged food and beverages, particularly of the retailer based private labels and local producers, is likely to lead to lower-priced brands that can offer more affordable options for consumers.
  • Organic 100% juice and organic edible oils are expected to be among the top performers for organic packaged food and beverages, with high-value sales, registering a forecast CAGR of around 35.4% for the period 2019-2024.
General Health  and Wellness Trends
  • The Argentinian economy is expected to continue to slow down, at least for the short term. Hence, consumers are still heavily value-focused, emphasizing price over quality. However, there has been an increased interest in health and wellness with Argentinians prioritizing their nutrition and physical activity to live healthier and more active lifestyles.
  • Additionally, there are direct conscious efforts by consumers to minimize the negative impacts of the foods they enjoy consuming. Education on food allergies led to consumers choosing more of the “free-from” foods, while others consumed the low sugar alternative for carbonated beverages.
General Economic and Demographic Landscape

Economy:

  • Argentina’s economy is expected to remain in recession during 2020 with real GDP falling by 1.6%, post a fall of 3.4% in 2019. Inflation in 2019 was recorded at 52.8%, with a further price rise of 45.0% expected in 2020.
  • While consumer spending has primarily been the main driver of the economy, higher interest rates and rising inflation have weakened credit and limited spending capacity, with the real value of private consumption falling by 7.2% in 2019 and a further fall of 3.5% forecasted for 2020.
  • Post 2020, there is scope for recovery with the government pushing through a number of IMF inspired reforms. Successful execution of these reforms could help ease more of Argentina’s durable problems such as capital flight. Growth of real GDP is expected to rebound to 0.5% in 2021, post which a further rise of around 2.5% is expected per year through 2027.
     

Population demographics:

  • With 44.8 million in 2018, the population growth in Argentina is occurring at a slow but a stable rate. On the other hand, the population of the country is ageing at a rapid pace, which is apparent in the increase of median age to 31.3 years in 2019, 3.8 years higher than that in 2000.
  • Additionally, the number of those over the age of 65 years totalled 5 million in 2019, recording an increase of over one million compared to 2000. This group currently makes up 11.2% of the total population and is expected to rise to 12.7% by 2030.
     

Income & expenditure:

  • The impact of the recession has been widespread on the economy of Argentina. The savings ratio in 2019 was 2.1% of disposable income and is not expected to change through 2020.
  • Consumer expenditure per capita reached US$6,113 in 2019, registering a growth of around 40% from 2018. With the continued recession, it is expected to fall by 4.2% in real terms in 2020. The loss of trust in the country’s banking system has led to private savings being directed outside the country.
  • The lack of confidence in the banking system, combined with increased expenditure on health and medical services for a continuously ageing population are expected to lead to consumer expenditure witnessing an average annual growth of 1.0% for the period 2020-2030.

 

Data

Data

Organic Packaged Food and Beverage Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

CAGR
(16-19)

CAGR
(20-22)

Health & wellness products consumption

USD million

2,628.0

3,309.6

4,409.4

5,811.0

7,453.3

9,075.1

10,528.6

30.2%

18.8%

Organic packaged food and beverages consumption

USD million

5.6

8.1

10.8

13.9

18.4

25.1

33.7

35.4%

22.3%

Organic packaged food consumption

USD million

0.9

1.1

1.4

1.6

1.6

1.7

1.8

21.1%

4.0%

Organic beverages consumption

USD million

4.7

7

9.4

12.3

16.7

23.4

35.5

37.8%

28.5%

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

%

0.2%

0.2%

0.2%

0.2%

0.2%

0.2%

0.3%

-

-

 

Economic and Demographic Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

Total population

million

43.5

43.9

44.4

44.8

45.2

45.6

46.0

% Middle and upper class of total population

%

28.7

27.8

27.9

27.9

28.0

28.0

28.1

% Population aged 65+

%

10.8

11.0

11.1

11.2

11.3

11.5

11.6

% Population aged 0-14

%

25.0

24.9

24.8

24.6

24.4

24.2

24.1

% Population with higher education degrees

%

14.9

15.1

15.3

15.4

15.6

15.7

15.8

Average number of children per household

children

0.9

0.9

0.9

0.9

0.9

0.9

0.9

GDP per capita

USD per capita

3,918.9

5,020.4

6,822.7

9,910.4

9,624.9

9,600.4

9,660.8

Consumer expenditure per capita (US$)

USD per capita

2,529.4

3,263.8

4,358.4

6,207.6

6,000.3

5,998.4

6,048.8

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

USD per capita

597.6

745.2

974.7

1,389.4

1,291.1

1,286.1

1,295.5

 

Retailer and City Data

Top 5 Cities by Population:

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2019)

1

Buenos Aires

14.5

Top cities by population (2019)

2

Córdoba

1.6

Top cities by population (2019)

3

Rosario

1.3

Top cities by population (2019)

4

Mendoza

1.0

Top cities by population (2019)

5

La Plata

0.9


Top 5 Grocery Retailers by Sales:

Data category

Rank

City/retailer

Top grocery retailers by sales (2019)

1

Carrefour SA

Top grocery retailers by sales (2019)

2

Cencosud SA

Top grocery retailers by sales (2019)

3

Distribuidora Internacional de Alimentación (Dia) SA

Top grocery retailers by sales (2019)

4

Importadora y Exportadora de la Patagonia SA

Top grocery retailers by sales (2019)

5

Coto CICSA

United States Department of Agriculture Global Agricultural Trade System Data

Top 5 Export Commodities to Argentina:

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2019

Argentina

1

Organic Milk

422,640

2019

Argentina

2

Organic Cherry Tomato Fr/Ch

27,201

2019

Argentina

Total

Total Organics*

449,841

2018

Argentina

Total

Total Organics*

-

2017

Argentina

Total

Total Organics*

-

2016

Argentina

1

Organic Coffee Roast Not Decaf

56,354

2016

Argentina

Total

Total Organics*

56,354


Note : Total organics is the sum of all exports in a particular year
Definitions

Definitions

Term

Definition

Health and Wellness

Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products.

Organic packaged foods and beverages

This category includes packaged food & beverages that are certified organic by an approved certification body. Organic production is based on:

• A system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers.
• Organic food & beverages are minimally processed without artificial ingredients, preservatives or irradiation.
• The use of GMOs (Genetically Modified Organism) is prohibited. “Certified Organic” means the item has been grown according to strict uniform standards that are verified by independent state or private organizations.
• Depending on the country, such products are called ‘organic’, ‘biological’ or ‘ecological’: For organic products to be included under Euromonitor definitions, the organic aspect needs to form part of positioning/marketing of the product. This is an aggregation of organic baby food, bakery, confectionery, dairy, ice cream, oils and fats, ready meals, rice, sauces, dressings and condiments, snack bars, soups, spreads, sweet and savory snacks and other organic food.

Note that fresh food products or individual ingredients are not included in this definition.

Compound annual growth rate (CAGR)

The compound annual growth rate (CAGR) is the average annual growth rate over a specified period of time. For instance, the CAGR consumption of from 2016 – 2019 will be the average growth rates across these three years.

USDA GATS data clarification

The data presented in table 2.4 represents the dollar values of the top 5 organic commodities as well as of the total organic exports of the trade partner for the period 2016-2019 as per the United States Department of Agriculture’s Global Agricultural Trade System, a database consisting of international agricultural, fish, forest and textile products trade statistics dating from the inception of the Harmonized coding system in 1989 to present.

Policy Information

Policy Information

Government Agency(s) / Competent Authority

Authorized Government Agency(s):

The competent authority for the inspection system of organic production in Argentina is the "Secretaría de Agricultura, Ganadería, Pesca y Alimentación" (Ministry of Agriculture, Animal Husbandry, Fisheries and Nutrition), through the "Servicio Nacional de Sanidad y Calidad Agroalimentaria" (National Agrifood Health and Quality Service; SENASA).

Agency(s) Contact Information:

SENASA - Servicio Nacional de Sanidad y Calidad Agro-alimentaria
General Coordinator of Management and Quality Assurance:
Ing. Agr. Juan Carlos Ramírez
Ministry of Agriculture, Animal Husbandry, Fisheries and Nutrition
Av. Paseo Colón 367, 5th floor,
(1063) Buenos Aires, Argentina
Tel./Fax: (+) 4345-4110/12; (+) 4331 - 6041/49
E-mails: jramirez@senasa.gov.ar; DICA@inea.com.ar
SENASA website (in Spanish)

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard:

July 14, 2016: Resolución 374/2016 (in Spanish)

In June 1992, SAGPyA, through Resolution 423/92, established the norms for organic, ecologic or biologic plant production, and the next year, through Resolution 1286/93, those of animal production. In addition, on September 8th, 1999, the National Congress issued Act 25.127, defining the concept, scope, and authority of the application of ecologic production.

Act 25.127 (in Spanish) See "General Files" below for an English translation.

Date of Implementation: 1992

Regulation and/or Standard Scope:

The production, characterization, processing, packaging, distribution, identification and certification quality of organic agricultural products.  "Green" or "organic" products subject to regulations issued by the Argentine Institute of Plant Health and Quality and provisions of the this resolution.

Imported Products

Imported products labeled as "organic" must come from a country whose organic standards have been evaluated by SENASA and found to be equivalent to the Argentine regulations on organic production. Otherwise, they must be certified by any of the Argentine certifying agencies approved by SENASA prior to export.

Additional information about importing plant products (in Spanish).

Certification and Accreditation

Certification:

There are currently private sector certification bodies working in Argentina. See the list on SENASA’s Organic web pages. (in Spanish).

Accreditation Method:

Government

Accreditation:

"Servicio Nacional de Sanidad y Calidad Agroalimentaria" (SENASA)

Additional Information

Reference Standards:

Argentina is considered third country for the certification of organic products destined to the European Union.  Argentina is applying for equivalence to the US and to Japan.

Additional Information:

Argentina's regulation is in compliance with CODEX.