In pursuing new business in Latin America, it can be helpful for agencies to discover the sectors in the region that are notching more sales and expanding. Here's a review made with a combination of data, including industry reports and projections, to identify the top growth markets in Latam.Auto Indutry
In pursuing new business in Latin America, it can be helpful for agencies to discover the sectors in the region that are notching more sales and expanding. Here's a review made with a combination of data, including industry reports and projections, to identify the top growth markets in Latam.
In January 2014 Nielsen reported that Latin American consumers have one of the highest purchase intents in the world for cars: 75% plan to buy a new or used car this year, 10% above the global average. This strong purchase intent reflects sales growth in different Latam markets:
While there haven’t been numbers reported for all of Latin America, a number of individual markets in the region have posted notable growth in the cosmetics sector:
According to Erez Akerman, president of the Bolsa de Diamantes de Panama (Panama Diamond Exchange), the diamond market in Latin America is posting more than US$8 billion in annual sales and is projected to have 25% growth this year.
Growth in this sector dates back to 2007. Food and drink consultant firm Zenith International reported that the average annual growth in the energy drink market in Latin America was 25% between 2007 and 2012. The value of the energy drink market in Latin America went up by an average of 22% per year between 2007 and 2012. The top-consuming energy drink markets include Brazil (with 56% of the overall market), Argentina (nearly 18%), Mexico (15%), Colombia (4.5%) and Chile (4%). The firm Research and Markets recently release a report in which it indicated that the energy drink market in Latin America will grow at a current adjusted growth rate (CAGR) of 21% in revenue between now and 2018.
A recent study from Jones Lang LaSalle projects that the Latin American hotel industry will increase its room supply by 65% over the next 10 years. In March 2014 Brazil had nearly 13,000 hotel rooms under construction, while in the same month Mexico had 162 hotels in the planning/construction phase. According to the STR Construction report, other Latam countries have significant amounts of hotel rooms under construction, including Colombia (2,805), Panama (1,919), Argentina (1,719), Chile (985) and Costa Rica (899).
According to Euromonitor, in 2013 Latin America led the world in luxury market growth. The firm noted that in 2013 Latin America posted 24% growth in the amount of luxury outlets and 22% growth in luxury outlets sales growth. The #2 region in luxury growth was the Middle East, with nearly 14% growth in the number of luxury outlets and 22% growth in sales at luxury outlets. Among the top luxury growth markets in Latin America:
According to TechNavio, the over-the-counter (OTC) pharmaceuticals market in Latin America will have a CAGR of more than 14% between 2013 and 2018.
Although no recent pet market data for all of Latam is available for 2013, Euromonitor noted a 44% increase in spending on pet products in Latin America between 2006 and 2011. In addition, it was recently reported that pet supermarkets Petco and Gigante will invest US$50 million in the opening of 50 new stores in Mexico and Latin America. Individual Latam markets are also showing good growth in the pet product sector:
With the World Cup, it’s projected that TV sales will increase in a variety of Latin American markets:
The year 2012 marked the first time that sales of traditional toys and games in Latin America surpassed US$10 billion, according to Euromonitor. The firm forecasts a 7% CAGR for the Brazilian toy market between 2012 and 2017, with spending per child increasing from US$81 in 2012 to US$125 in 2017. Euromonitor also projects that the Mexican toy market will be worth more than US$300 million by 2017. Other relevant numbers to take into account include:
You might also be interested in:
Breaking boundaries to solve complex problems calls for "exploration leadership"...
Hiring more locals to fill top posts at Western multinational corporations (MNCs) operating in Asia doesn’t just further inclusion, it’s good business. Localising leadership requires overcoming cultural conditioning in certain Asian cultures that may, in certain circumstances, be a hindrance to upward mobility in large global organisations, but organisations that are cultivating local management in the region seldom regret it.