Mass Consumption Shows Signs of Life in July
Following a negative month in June, Argentina's mass consumption (a measure of everyday consumer goods like food, beverages, and personal care items) registered a 4.2% month-over-month increase in July, according to a report by the consulting firm Scentia released on August 21, 2026. However, this improvement does not offset the annual decline: compared to July 2025, sales fell by 2.6%, and the cumulative January-July figure shows a 2.9% drop.
The monthly rebound occurred amid a unique set of circumstances: the FIFA World Cup 2026 (hosted in the USA, Canada, and Mexico), the disbursement of mid-year bonuses (aguinaldo) for formal workers and pensioners, and the winter school holidays (in the southern hemisphere), all of which helped boost household spending.
Osvaldo del Río, director of Scentia, highlighted that the improvement was widespread across traditional channels, though with variations. Major supermarket chains grew 4.2% month-over-month, independent self-service stores rose 3.6%, pharmacies saw a 5.2% uptick, e-commerce expanded 6.3%, kiosks and traditional stores increased 4.6%, and wholesale chains climbed 5.3%.
Channel-by-Channel Performance
| Channel | Monthly change | Year-over-year change |
|---|---|---|
| E-commerce | +6.3% | +39.9% |
| Wholesale | +5.3% | -0.5% |
| Pharmacies | +5.2% | +2.7% |
| Kiosks & traditional stores | +4.6% | -6.1% |
| Supermarkets | +4.2% | -0.6% |
| Independent self-service | +3.6% | -1.2% |
E-commerce Reigns Supreme
Online shopping continues to dominate retail dynamics. In July, e-commerce grew 6.3% month-over-month and 39.9% year-over-year. For the first seven months of 2026, it has expanded 35.6%, fueled by promotional offers and the convenience of buying from home. Alcoholic beverages lead online sales with a 59.1% annual surge, followed by food items at 56.7%.
Category Behavior and Inflation
Inflation remains a critical factor. In July, food prices rose 2%, slightly below the overall inflation rate of 2.1% reported by INDEC (Argentina's National Institute of Statistics). However, Scentia warns that sustained consumption recovery depends on continued disinflation and real wage gains. If the positive trend holds, Scentia projects that mass consumption could settle within a range of -1% to +1% year-over-year, though at a pace slower than overall GDP growth.
Meanwhile, NielsenIQ notes that 34% of supermarket sales now occur under some promotion, and 24% of store purchases are of entry-level (economic) products. Consumers are shifting toward options that minimize out-of-pocket spending per trip.
Changing Consumer Habits
According to Esteban Cagnoli, CEO of Worldpanel by Numerator, 'Consumers are not buying products anymore; they buy benefits. Functional well-being is gaining importance: nutrition and functionality are redefining decisions of Argentine households.' This translates into a search for value and items with attributes like indulgent flavors, light versions, and limited editions.
In closing, Scentia believes that if inflation continues to fall and real wages recover, Argentina could be on the verge of a 'gradual improvement' in consumption. This is a signal the government is watching closely, amid expectations for upcoming economic indicators and the 2027 elections.
Original report: Scentia