MARKET CONCENTRATION IN ECUADOR'S CONSUMER GOODS SECTOR THROUGH THE HERFINDAHL-HIRSCHMAN INDEX IN 2022

Abstract

The study focused on analyzing the concentration in the market of mass consumption products in Ecuador, specifically in the supermarket sector, during the year 2022. To carry out this analysis, the Herfindahl-Hirschman index (HHI) was used. as a measure of market concentration. The HHI made it possible to assess how the market shares of the main companies influenced competition and the degree of economic concentration. In the context of an economy like the Ecuadorian one that is evolving and changes in consumption patterns, it was essential to understand the competitive dynamics in the mass consumption products sector. The concentration analysis provided valuable information on the structure of the market and the competition between the companies. The results of the analysis showed that the main supermarket companies in Ecuador, such as Corporación Favorita C.A., Corporación El Rosado S.A., Tiendas Industriales Asociadas TIA S.A., Almacenes de Prati SA and Moderna Alimentos S.A., have significant market shares in terms of percentage from income. In addition, the HHI was calculated, which provided a quantitative indicator of market concentration. The HHI values obtained indicated that the market for mass consumption products in Ecuador showed a level of moderate to high concentration. Market concentration has important implications in terms of competition and market power of companies.