Latam FMCG consumption will continue growing in 2024 – led by Brazil

Consumer values shape regional trends in parallel with economic drivers.
29 February 2024
Latin American Consumer Horizon report
pedro manosalvva

Managing Director, Worldpanel Division, Latam

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Latin America’s economic landscape is constantly evolving, which makes understanding consumer trends and anticipating the future crucial for the success of brands. Worldpanel's latest study – The Latin American Consumer Horizon – offers deep insights into the emerging trends that are shaping the FMCG market.

We foresee a 5% growth in FMCG volume across the total Latam region for 2024 – similar to last year.

Omnichannel shopping has become a fundamental pillar of consumer behaviour. In 2022, the average number of channels visited increased from 7.9 to 9, with a shift towards store formats that favour larger purchases. Wider access to banking products is one of the reasons behind the change – with the proportion of shoppers from lower socio-economic levels using bank cards to pay for FMCG purchases rising from 57% to 73% in just one year.

In addition to economic drivers, consumer values are transforming the market, too. Sustainability and health have become key concerns, with more than 50% of the population committed to the environment, and 66% seeking products with natural ingredients. Brands that can demonstrate authenticity and responsibility on these issues have a clear competitive advantage.

The format of Latam families also has an influence on the FMCG landscape, especially as the smallest households today represent 33% of the region’s population.

Exploring the country-by-country outlook, Brazil leads the recovery in FMCG consumption with solid volume growth of 10% expected for 2024. Meanwhile Colombia and Chile anticipate growth of 4%, with opportunities in specific types of retailers.

An advanced statistical model that analyses historical sales and their link to economic factors enables Kantar to project future FMCG demand by unit. Contact us to understand the trends emerging in the Latam market, and develop effective strategies to capitalise on them.

To delve deeper into the topics covered in this article, you can access the full report:

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