Market Research in Argentina
Argentina, a country named after its great wealth of silver, is one of the top economies in Latin America. The country’s economy has historically faced challenges due to mismanagement. Investor-focused government policies are however opening up the country to foreign investments.
Argentina’s Strategic Industries
Argentina’s economy is driven mainly by the manufacturing, agriculture and services industries.
Agriculture in Argentina
Argentina is a leading food producer in the world. The country’s industries in agricultural and livestock production sectors provide exports to neighbors Brazil and Chile as well as United States, Vietnam and China.
Top exports from the country include soybean meal and oil, corn, wheat, bran and beef. Livestock rearing has influenced the growth of hides and leather businesses, including local leather processing. Argentina also ranks among the world’s top wine producers.
Manufacturing in Argentina
The manufacturing industry is a big contributor to Argentina’s GDP. Manufacturing electronics and home appliances for local and global markets, the industry has experienced some growth. Increased internet use has further helped the industry by widening the client base through e-commerce.
Textile manufacturing has provided growth opportunities for the clothing sector. The country has a thriving fashion industry that creates a ready market for textile manufacturers. There have also been gains from purchases by international fashion designers.
Tourism in Argentina
Tourism is becoming more and more important as the country builds its services industry. Supporting other sectors like hotels and tours and travels, foreign visitors are helping grow tourism.
Top tourism sites include Iguazu Falls and the ski resorts of San Carlos de Bariloche. Buenos Aires—one of the most populous cities in the region, receives tourists who visit it for its cultural heritage and carnivals. Visitors looking for adventure in Argentina visit Patagonia and Tierra del Fuego.
Business Opportunities in Argentina
Past economic problems and the government’s business-friendly policies are creating an opportunity for foreign businesses to invest in Argentina. Investors also have access to a market which includes the neighboring Latin American countries since Argentina is a member of Mercosur.
Opportunities in the ICT Sector
With a population of over 40 million and a large portion of it being young and educated, Argentina is both a market and a source of human capital for businesses. Internet penetration and usage is high and the government is implementing policies aimed at increasing technological uptake.
Argentines have also shown great interest in Bitcoin. This provides an opportunity for cryptocurrency business. For instance, stablecoins can be used to diversify investments considering the many times the Peso has weakened in value.
Manufacturing Opportunities in Argentina
Around 50% of Argentina’s imports by value consist of machinery and transport equipment. This points to insufficient supply from the local industries. This is itself an opportunity for manufacturing businesses to plug in and fill the gap.
International financial service providers have pledged to support infrastructure projects like new roads, ports and utilities. This will improve logistics and help businesses reach both the local and international customers more easily.
What Challenges Does Argentina’s Economy Face?
Despite its potential, the country has faced numerous challenges due to political instability over the years and long periods of economic recession. With inflation remaining high with no growth, urban poverty has been on the rise.
Attempts to revive the economy have taken different approaches with capital controls lifted and re-imposed, making foreign investors jittery. Spending has reduced due to high inflation and a currency crisis, potentially affecting the viability of doing business in the country.
Top Business Clusters in Argentina
One of the best locations for business in Argentina is the capital, Buenos Aires. Apart from its financial services and tech startups, its rich cultural life, museums and monuments as well as nightlife make it one of the top tourist destinations in the country.
The Pampas and Cordoba are strategic clusters for agricultural and manufacturing businesses respectively.
The Importance of Conducting Market Research
Argentina is a land rich in resources and business opportunities. As the government works to improve the country’s economy, this could be the best time for investors to expand into the country. With expertise in market research, we can help businesses understand the Argentinian market.