[REVISION HISTORY]

Argentina consumer spending slump and retail shift

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2026-10-14 11:56 UTC → 2026-10-30 23:59 UTC · added ~~removed~~

By late 2026, the erosion of Argentine households’ purchasing power due to rising utility tariffs and inflation has fundamentally altered dietary habits and retail activity. While mass consumption fell significantly in mid-2026, data from the Centro de Almaceneros indicates that September inflation exceeded 2 percent, driven by costs in food, clothing, and footwear, contributing to an 8.5 percent year-on-year decline in local retail sales. Meat consumption patterns have undergone a historic shift. For the first time in recorded history, poultry consumption has surpassed beef consumption. According to IERAL of the Fundación Mediterránea, between August 2025 and July 2026, apparent chicken consumption reached 47 kilograms per inhabitant, while beef fell to 46.7 kilograms. This shift is driven by a massive price gap, as consumers can purchase approximately 3.6 kilograms of whole chicken for the price of one kilogram of beef. Pork consumption also reached a record high of 20.1 kilograms per person. However, the pork market faces intense competition from Brazil; due to increased Brazilian production and falling prices, the price gap between Argentine and Brazilian pork reached 61.9 percent in August, driving higher import volumes into Argentina. Industry consultants have raised concerns regarding the quality of these imports, noting that certain Brazilian production methods may result in higher water absorption, leading to weight loss during cooking. In the Buenos Aires Metropolitan Area (AMBA), meat retailers report a 40 percent year-on-year drop in the volume of beef sold. To avoid permanent closure, many small businesses are absorbing rising costs for rent and utilities rather than passing them on to consumers. While total meat consumption remains relatively stable at 113.8 kilograms per inhabitant per year, the composition has moved away from beef toward poultry and pork. Consumers are increasingly opting for smaller, more frequent purchases of affordable proteins.

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