21% of Latin American consumers have not changed their consumption habits in order to save on their expenses, since they are looking for the best products, regardless of whether they should pay a little more for them, according to the study 'Consumer Report : Pockets of Growth Latin America 2017, prepared by the firm Nielsen.
The remaining 79% is changing their consumption habits in order to save some money, however, they are open to buying new and better products if the value proposition matches their key concerns and demands.
Latin American consumers are willing to pay more for products with superior quality (57%), performance and better functions in purchasing processes (50%) and items containing organic or natural ingredients (49%).
They also tend to acquire premium products if manufacturers carry out their processes in a socially responsible manner, since they wish to acquire environmentally friendly goods (48%) and if companies have strong Corporate Social Responsibility policies (39%).
WHAT LATIN AMERICANS BUY MORE
Consumption in Latin America grew in 2017 thanks to stronger currencies, lower interest rates and the recovery of consumer confidence. With the three largest countries in the region (Brazil, Mexico and Argentina) enjoying a growth in consumption that goes from modest to very strong.
According to Inkwood Research, the Latin American beauty, cosmetics and personal care market had a total value of US $ 59.6 billion in 2017 and is projected to be worth US $ 83.6 billion by 2026, which represents a compound annual growth rate (TCAC) of 4%. Latin Americans spend more than twice the global average per capita on these products.
The energy drinks market in Latin America will grow with a TCAC of almost 12% between 2017 and 2021, according to a projection from Technavio. As Latin Americans become increasingly health conscious and become disengaged from consuming high volumes of soda, many have switched to energy drinks.
In a recent report with projections for the next 10 years (2018 to 2028), Reportlinker forecast a TCAC of 9.3% for the Latin American pharmaceutical market for the first half of that period. Latin America is the most obese region in the world, and its population is aging faster than any other part of the world: both are part of mega-trends that are affecting the health system of the region. As a result, chronic disease rates are increasing in Latin America and with them the demand for drugs in LatAm has emerged. The retail sale of drugs and medicines is consolidating rapidly, which is creating distribution efficiencies that make medicines more affordable.
For consumers in Africa, the Middle East and Latin America, items such as education, technology and health care fall into the five categories in which they spend the most.