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Latin America’s Consumers
Shopping Habits, Preferences & Market Trends
EXECUTIVE SUMMARY
• A new consumer class of 200 million is emerging with an estimated US$5 billion in consumption
• Current percentages of Class C (middle class) is growing sharply in many of the region’s key markets
• By 2020, per capita consumption in Latin America will nearly double from 2012 levels
• Latin American shoppers favor a number of key products and their spending patterns reveal 13 major product categories that we analyze in the study
Defining new targets in Latin America is key for marketers.
Source: IPC Target
For years, the safe, sensible strategy was to focus on the top 20% earning
more than US$15,000/year
However, a new middle class has emerged of 200 million—1/3 of Latam’s
total of 600 million consumers
This new class consumes an estimated
US$5 billion/ year
Sources: 1United Nations, 2World Bank, 3Cetelam report O Observador Brasil 2012, 4Consultora W, 5Departamento Administrativo Nacional de Estadística, 6Asociacion Mexicana de Agencias de Investigacion de Mercados y Opinión Pública, 7Asociación Peruana de Empresas de Investigación de Mercados, 8Novomerc Chile
7%
21%
3%
31%
7%
13%
47%
53% 52%
33% 32%
28%
0%
10%
20%
30%
40%
50%
60%
Argentina Brazil Chile Colombia Mexico Peru
Classes AB
Class C
In fact, Latin America’s Middle Class (Class C) has become a significant portion of the population in several key markets.
And Latin America’s consumer market will continue growing. By 2020:
Source: Americas Market Intelligence
US$10.7 billion
combined GDP
640,000,000 total consumers
Equivalent to 9% of global GDP
Double Latam’s GDP in 2010
Private consumption per capita of US$11,143 compared to US$6,360 in 2012
Following the Money in Latam
After reviewing dozens of studies, we have identified many of Latin America’s favorite products. Here’s a brief review.
Sources: 1Investigaciones Economicas Sectoriales, 2Instituto Brasileiro de Geografia e Estatística, 3Global Insight, 4Asociacion Nacional de Empresarios, 5Scotiabank
25% sales increase in Argentina,
20111
23% sales increase in Colombia,
20124
16.6% sales increase in
Brazil, 20112
20% sales increase in Peru, 20125
11.6% increase in appliance consumption in México
through 20153
#1 Appliances: Sales are spiking in many Latam markets.
Source: América Retail
US$70 billion
Sales of beauty products in Latin America in 2011
#2 Beauty products & cosmetics: the region is posting significant growth
Brazil is Latin America’s top beauty market…
Sources: 1Euromonitor, 2Pyxis Consumo
US$43 billion Total sales in 20111
18.9% Growth in sales in 20111
15% projected growth in 20122
Brazil is the
#3
beauty market in the world
…but other cosmetics markets are growing strongly in Latam.
Sources: 1Maison du Luxe, 2SComité Peruano de Cosmética e Higiene, 3Cámara Cosmética de Chile, 4Cámara Nacional de la Industria de Productos Cosméticos
18% Projected Growth in Perú in 20122
5% Projected Growth in Mexico in 20124
40% Growth in Argentina in 20111
8% Growth in Chile in 20113
#3 Cars: strong sales in 2011, including records in several countries.
Source: Asociación Latinoamericana de Distribuidores de Automotores
6.4 million
cars were sold in Latam in 2011
7% increase compared to 2010
Record sales in 2011 occurred in several markets.
Sources: 1Asociación de Concecesionarios de Automores de la República Argentina, 2Asociación Nacional Automotriz de Chile, 3Econometría, 4Asociación de Representantes Automotrices del Perú
Perú 140,000 units,
24% higher
than 2010
Colombia 324,570 units,
27.8% higher
than in 2010
Argentina 857,983 units
sold, 29.5%
higher than 2010
Chile 334,000 units,
21% higher
than in 2010
A number of brands posted record sales in Latin America in 2011.
Sources: Peugeot, Nissan, BMW, Audi, Porsche
3,000+ units, 21% increase
7,000+ units, 37% increase
33,000+ units 144,000+ units, 13% increase
326,000+ units, 10.9% increase
And the trend continues in 2012 in many markets…
Sources: 1Econometría, 2Asociación de Representantes Automotrices del Perú, 3Asociación Mexicana de la Industria Automotriz, 4Cámara Automotriz de Venezuela, 5Asociación de Distribuidores de Automóviles de Panamá
Venezuela:
16% increase in
sales Jan-July 20124
México:
11.9% increase in
sales Jan-July 20123
Perú:
35% increase in sales
Jan-July 20122
Colombia:
34% increase in
sales in August 20121
Panama:
6% increase in sales
Jan-July 20125
#4 Coffee Shops: by 2016, 13% of world’s total value in coffee shops will come from Latin America.1
Sources: 1Euromonitor, 2Starbucks
Currently Starbucks has
560 Stores in Latam
In 2012 Starbucks announced it will open 300 new stores in Argentina & México by 2015 and “several hundred” stores in Brazil2
Starbucks is not the only coffee brand expanding in Latin America.
Source: Dunkin Donuts press release, July 2012
Dunkin Donuts will open more than 125 stores in the next 10 years in Latin America in Chile, Colombia and Peru
Currently, it has
300+ Stores in Latam
#5 Computers are posting strong sales in Latin America.
Source: Pyxis Consumo
In 2012 Latin Americans will buy
40 million computers
5% increase
compared to 2011
Tablets are becoming very popular in larger markets…
Sources: 1Carrier y Asociados, 2IDC
69% sales increase first half 20121
2.6 million tablets sold in 20122
1.5 million tablets sold in 20122
Argentina
Brazil
Mexico
…and also in smaller markets.
Sources: 1Dominio Consultores, 2Gremial de Empresas de Informaticas, 3GfK Chile
334% sales increase first half of 20122
52% sales increase first half of 20123
1,124% sales increase: Sep 2010 to Sep 20111 Chile
Peru
Guatemala
Source: Euromonitor International
5.2% of México’s population can
afford luxury goods
#6 Luxury: Latam is an emerging market.
Latam’s luxury market is
growing by 15% a year
Luxury sales in Brazil are set to hit
$12 billion in 2012
25% growth compared to 2011
#7 Pet Care: Latin Americans are spending more than ever.
44% increase
over the past 5 years
Source: Euromonitor International
US$11 billion Current sales of pet
products in Latin America
Top pet care markets in Latam include Brasil, Mexico and Argentina.
Sources: 1Pyxis Consumo, 2Euromonitor
645,000,000 Argentina pet care sales, 20102
US$2,900,000,000 Brazil pet care sales, 20111
US$1,000,000,000 Mexico pet care sales, 20102
Plus, the pet care market has grown by 20% in Chile over the past 5 years and by 25% in Perú in 20112
30% 24% 20% 14% 11%
10%
Sources: 1Vision Mobile, 23D Chile, 3Google Our Mobile Planet, 4IDC, 5Futuro Labs
Top Countries By Smartphone Penetration, 2012
Argentina3
Chile2
Mexico3
Brazil3
Peru4
Costa Rica5
#8 Smartphones: in Latin America, 17% overall penetration in 2012.1
By 2017, 145 million smartphones will be sold in Latin America—4 times more than in 2011.1
Sources: 1Pyramid Research, 2Carrier y Asociados, 3IDC, 4The Competitive Intelligence Unit
Sales increase in Argentina in 20122
Sales increase in Brazil in 20123
Sales increase in México in 20124
106%
73%
26%
Sources: 1Deutsche Bank, 2Abeceb.com, 3Emerging Pharmaceutical Markets in Latin America Dec. 2011 report
Brazil’s pharm market ranks #7 in the world
8.9% projected growth for Colombia’s pharm market 2012-20163
6% projected growth for Mexico’s pharm market 2012-20141
26% growth for Argentina’s pharm market, 20112
#9 Pharmaceuticals: The Latam market is at US$60 billion per year1, with strong growth in specific markets.
Source: Euromonitor International
• Households in Latin America spend 4% of their income on soft drinks, the highest
amount in the world
• By 2016, soft drink consumption in
Latam will equal that of Western Europe
• Mexico is the world’s biggest
consumer of soft drinks with a per capita
consumption 40% higher than that of
the U.S.
#10 Soft drinks: This category is also growing powerfully in the region.
Source: Euromonitor International
In 2011, Latam posted US1.7 billion in sales of sun care products, 18% of overall sales in the world
#11 Sun Care Products: By 2016, Latin America will be #2 in the world in sales.
Sources: 1TDMonthly, 2Associação Brasileira dos Fabricantes de Brinquedos, 3Instituto IBOPE Inteligencia, 4Asociación Mexicana del Juguete
Top sales categories include dolls, building sets and
infant/preschool products1
Latam accounted for 14.4% of Mattel’s worldwide sales
and for 7.8% of Hasbro’s1
Brazil’s toy market grew by 9% in 2011 to reach US$2.8 billion2 &
grew another 14% in 20123
México’s toy market reached US$2.1 billion in sales in 20114
#12 Toys: Latin America is the world’s fastest-growing toy market: 6-8% annual growth.
Source: United States Department of Commerce
1.78 million Latin Americans visited the United States in 2012: 18% more than in 2011
By 2016, 2.5 million Brazilians will visit the United States
#13 Travel: Latin Americans took 15% more trips in 2011.
Source: Visit Florida
4 of the top 10 countries who sent the most visitors to Florida in 2011 were Latin American:
1.5 million 375,500 387,000 306,500
#14 Florida is the top U.S. destination for Latin Americans.
Launched in 2003, US Media Consulting is a leading media services firm that specializes in building links to reach Brazil, Latin America and U.S. Hispanics
• Starting with a client’s goals, we devise media solutions that deliver powerful results via strategic media selection and execution
• Our team specializes by media type—including Internet, online video, mobile, SEM, print, broadcast and OOH
• For agencies and advertisers, our expertise streamlines campaign execution while maximizing impact
• For media owners, we add sales firepower through specialists across the region and in all of our core markets
• See www.usmediaconsulting.com for more information
US Media Consulting