Argentina: Economic instability, global brand dominance and localized efforts
The “double-burden” rears
In the Argentinian nutrition sphere, consumers are focusing on proactive approaches to health, which is supported by the innovative activities of global firms entering the marketplace. Longer-term disease prevention efforts are replacing treatment remedies (OTC), and dietary supplements are strongly helping the movement gather pace.
With the prevalence of overweight and obesity levels set to increase over the forecast period between 2018-2023, product purchasers and brands alike are expected to center on eliminating weight problems in Argentina through diet control, market intelligence provider, Euromonitor International revealed.
Fighting against inflation
However, for imported dietary supplements, the outlook does not look so positive. Restricted growth is set to ensue in this specific segment as economic problems continue. The unit prices of dietary supplements are due to ramp up as a result of growing inflation and the devaluation of Argentina’s local currency, the Peso, in 2018.
Brands looking to implement a price hike due to this economic backlash are unlikely to succeed as pricing strategies will need to give way to decreasing consumption, and capacity of would-be supplement buyers.
Current inflation, along with subsequent consumer price sensitivities and conservative purchasing behaviors, are having a positive impact on the direct sales of dietary supplements. Without a physical brick-and-mortar presence and their associated, higher costs, online retailers are able to optimize their selling strategies. Through lower sales, marketing and distribution costs, e-tailers are able to capture these customers and grab market share.
Fragmentation spurs limited growth and increasing uncertainty
Out of all the many consumer health areas growing in popularity in Argentina, dietary supplements remains the most disintegrated.
Indie and SME domestic manufacturers are finding it hard to carve a strong presence in Argentina as big global names such as Nycomed Argentina (owned by Takeda Pharmaceutical), Herbalife and Omnilife command the market.
Focused action creating change
Small organizations are taking a stance and voicing their own thoughts on what needs to be done in Argentina to improve attitudes, education and understanding of food security in a bid to achieve longer-term eradication of hunger and poverty.
Non-profit organization, the Huerta Niño Foundation, strives to alleviate malnutrition among adults and children in Argentina by creating gardens in rural and urban schools to promote the importance of the Sustainable Development Goals: the end of poverty, hunger and the reduction of inequalities.
Bringing their mission to school gardens in Argentina, the Huerta Niño Foundation hopes to set the foundations for removing child hunger and poverty by practical learning and diversifying the students’ diets.
