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Sales of packaged food grew 8% in 2020 due to coronavirus

Last year the sales of packaged food in Latin America reached 226 billion dollars, which meant an increase of 8 percent in relation to the previous year, estimated the market researcher Euromonitor International.

« The migration of millions of consumption occasions from the foodservice channel, offices and schools to the home, fueled this growth”Said Andrés Chehtman, senior analyst at Euromonitor International.

This transfer of consumption to the home, product of the sanitary confinement due to the covid-19 pandemic, generated a greater demand for convenience and cooking at home.

«The biggest losers in the region will be the lower middle classes, who are in danger of falling into poverty. Reducing disposable income and rising unemployment mean that many consumers will prefer value-for-money options, such as private label and B-brands from major players, which tend to offer a lower price but good quality », Referred Euromonitor.

He explained that some brands have also increased inexpensive packaging options, such as plastic bags for yogurt in Argentina.

« The number of discount stores in the region is expected to grow 6 percent in 2020 and 10 percent in 2021, » he said.

The consultant indicated that the value for money is key for a region with high levels of poverty; to this was added the expansion of electronic commerce and digital culture during the year.

«To sustain sales it is necessary to adapt in terms of products, prices, communication and marketing channelsChehtman added.

AMP