Consumer behavior in Latin America

Home to nearly 700 million people, the importance of Latin America as a consumer market cannot be overstated. With 45% of the population estimated to be middle class by 2030, double the level of 2005, according to the IZA Institute of Labor Economics, opportunities abound for international companies to expand in the region.

In order to take full advantage of regional opportunities, international companies need a deep understanding of what drives consumer behaviour both on the street, digitally and as a combined shopping experience. That means building in-depth knowledge of consumer psychology, including values, beliefs, biases and desires.

What drives consumer loyalty, trust and confidence? Broadminded research will answer these three crucial questions. Latin Americans are astute followers and creators of both global and local trends. We can help you become fluent in the languages of the region’s dynamic consumer cultures, where musicians, athletes, influencers and YouTubers hold great sway over local preferences. Their influence is ever more powerful thanks to the voracious appetite of Latin Americans for online engagement. 

Our research will also help you navigate the complex economics that make or break a consumer’s ability and willingness to spend. The region is far more susceptible to sharp inflationary swings than the US and many European economies, impacting saving / spending attitudes, consumer sentiment and households’ purchasing power. It is important to remember that high customs duties in some markets can result in considerable mark-ups on imported goods that would be considered good value elsewhere in the world.

We provide analysis on how consumers make their purchases, an increasingly important factor in the shopping experience, as digital payment options proliferate. Paying in instalments has been hugely popular in Brazil for decades, with 62% of monthly credit card users in the country using this method to pay for items large and relatively small, according to the Brazilian Association of Credit Card and Services Companies. 

The ‘how’ also extends to the shopping environment as well. Sure, the region’s cities and suburbs are filled with malls packed with branded chain stores. But  ‘mom and pop’ stores remain vital  – and much loved – in the Latin American communities they serve, particularly in low income areas and more remote locations. 

Tailored to your needs, our research will be your compass, directing your products and services to the most suitable markets, where you can build loyal relationships with your new customers both in the digital and physical worlds.

Broadminded specialises in niche market research that goes beneath the surface, offering unique insights that allow us to track trends in Latin America over the long term.  

Talk to us today about your ambitions in Latin American consumer markets.