Habits of Latam shoppers are changing from the cost-of-living crisis

Shoppers are having to manage their budgets more carefully, looking for value for money across a greater range of shopping channels.
06 June 2023
Latam Omnichannel Report IMAGE
Lenita Vargas

Shopper & Retail Director, Worldpanel Division, Latam

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2023 is proving to be a challenging year for the Latam region as the cost-of-living crisis intensifies driven by inflationary pressures and price increases.

While the pandemic forever changed the way people shop in the region, including the rapid growth of ecommerce, consumers are continuing to adapt their behaviour in the face of new economic and social challenges.

Worldpanel's Latam Omnichannel 2023 Report includes key observations on the region’s shopper behaviour including:

Fragmented spending

Omnichannel shoppers are the driving force behind FMCG growth in the region, which saw value sales grow 16% in 2022. In the last two years, the number of channels visited by Latam shoppers has increased 17%. Shoppers now have a choice of 18 different types of retail channel leading to more fragmented spending and the decline in customer loyalty.

Small shopper missions are the new trend

Latam consumers are opting for smaller missions over bigger trips, with basket sizes in the region falling for the first time. Modern trade, discounters and wholesalers saw the biggest growth in the number of smaller shopper missions as more shoppers visit these channels. Size is also important to Latam consumers, with shoppers now using smaller shopping missions to buy bigger sizes, and bigger missions to stock-up on smaller size items.

Value for money is a priority for Latins

Discounters and wholesalers have benefitted more than any other channel in 2022 as shoppers look for lower prices, while modern trade is increasingly attracting low-income shoppers. Discounters continue to invest in the region focusing on product diversification including both private label and brands.

Latam Omnichannel Report graph
Ecommerce slows

Ecommerce attracted three million new shoppers in 2022, mainly from low-income households, but slowed for the first time since the pandemic. In a cost-of-living crisis shoppers are going back into stores so they can compare prices, sizes, brands and take advantage of promotions and deals.

New challenges for retailers

2022 was a year of recovery post-pandemic, but retailers and shoppers now face new challenges in 2023 and beyond. While there has never been more choice of retail channels or opportunities to buy, shoppers face inflationary pressures and price increases, so value for money is critical in the current climate.

For more information, read our Latam Omnichannel 2023 report here.

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