Argentina bakery industry faces sales slump and rise of illegal bakeries

In La Rioja, the Chamber of Industrial Bakers led by Oscar Carrizo reported an 18% drop in bread consumption through June compared with the same period last year, despite winter traditionally boosting demand. Prices have risen, with the price of a kilogram of bread now about 1,500 Argentine pesos and retail prices around 3,500 pesos.

The federation representing bakers in the Province of Buenos Aires said that about 340 bakeries – roughly 2% of the 17,000 establishments – have closed in the past two years, many of which continue operating clandestinely. Secretary‑general Raúl Santoandré highlighted informal competition as a major challenge, alongside reduced consumer purchasing power.

Both regions note changing consumer habits, with growth in whole‑grain, sourdough and seed‑based products, while traditional pastry lines decline. The sector’s outlook depends on broader recovery of real wages and effective measures against illegal bakeries.