In Business Trends & Strategy, Consumer and Retail, General Interest

According to the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), Latin America’s GDP will grow by 3.2% in 2022. However, by 2023, ECLAC estimates that Latin America’s economic growth will slow down to just 1.4% for the entire year. The organization indicates that the region faces an unfavorable international climate, including the Russia-Ukraine War, exports to China, inflationary pressures and high financial costs.

Although these economic projections are not altogether positive, there still are specific sectors that are experiencing strong growth in Latin America, despite the headwinds.

The 2023 Latin America Forecast

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The 2023 Latin America Forecast

Five massive trends that will shape Latin America not only for in 2023—but also throughout the rest of the decade into 2030

Finally, before you explore the best-selling products in Latin America in 2022 below, you may also want to review our analysis of how Latin American demographic changes will deeply change the consumer market over the next decade, an article that can be found here.

The Best-Selling Products in Latin America in 2022 and Beyond

Motorcycles

During the first half of 2022, more than 2.26 million motorcycles were sold in Latin America, according to McD, which represents an 11% increase versus the first half of 2021.

According to McD’s data, Mexico is the largest market for motorcycle sales in Latin America, even larger than Brazil. However, Mexico motorcycle sales only went up by 7% in 2021, while motorcycle sales in Brazil increased by 22.9% in 2021. The third-largest motorcycle market in LatAm is Colombia, which posted a 41.5% increase in motorcycle sales in 2021.


Pharmaceutical Products

Latin America’s pharmaceutical market has a robust CAGR of 9.7% between 2021 and 2026, according to IQVIA. This is a higher projected growth rate than those of the Middle East, Europe and North America. Among the more prominent pharmaceutical markets in Latin America are Argentina, Chile and Ecuador, while top brands in the region include Sanofi, Abbott and Eurofarma, among others.

In addition, generic drugs are another sector of the market with solid growth: the generic drug market in Latin America is set to grow with a CAGR of 6.4% between 2022 and 2027, according to Market Data Forecast. By 2027, the generic drug market in Latin America will reach a volume of US$50.67 billion, and Brazil and Mexico will be the markets with the most expansive growth.


Dietary Supplements

Grand View Research reports that the nutritional supplement market in Latin America will grow with a CAGR of 8.1% between 2022 and 2030. In 2021, the nutritional supplments market in Latin America reached a value of US$48 billion.

During the pandemic, the best-selling supplements were those that reportedly strengthen the immune system. These days, “functional foods” have become very popular: these are supplements containing nutrients such as probioticos, omega-3 fatty acids, collagen and others.


Pet Food

It’s estimated that the LatAm pet food market will grow with a CAGR of 12.3% between 2022 and 2027, according to EMR. By 2027, the pet food market in Latin America will have a value of US$21.2 billion. According to EMR, Brazil is LatAm’s leading pet food market, since the country has at least 132 million pets.


Electric Vehicles

In 2021 there were at least 23,000 electric vehicles sold in Latin America, more than double the amount sold in 2020, according to Americas Market Intelligence. The most popular electric vehicle types in Latin America are hybrids and plug-in hybrids.


Cars

Research and Markets estimates that the auto market in Latin America will grow by 7.6% in 2022. The company indicates that more than 4 million cars were sold in Latin America in 2021, which indicates 12% year-over-year growth.

The most robust car market in Latin America in 2022 was Uruguay, with a 22.9% increase in sales, followed by Mexico (12.3%) and Ecuador (9.7%).


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Video Games

Latin Americans spent US$8.9 billion on video games in 2022, which is a 10% increase versus 2021, as reported by Newzoo. Given these numbers, overall Latin America has a 4% share of the global video games market, higher than the shares of the Middle East and Africa, though lower than the rest of the world’s regions.

According to NewZoo, mobile games dominate the video games industry around the world, with 45% market share, versus a 29% share for the console sector (which includes players like PlayStation, Nintendo and Xbox).


Handicrafts

Sales of handicrafts in Latin America will grow with a CAGR of 11% between 2023 and 2028, according to a recent report from EMR, which further indicates that this growth will be driven by a growth in tourism to Latin America over this period. It’s important to note that this handicrafts market projection for Latin America includes wooden pieces, textiles and prints, along with embroidery and other handmade articles.


Appliances and Electronics

Sales of appliances and consumer electronics in Latin America will growth annualy by 8.4% between 2022 and 2027, according to projections from Mordor Intelligence. This projection includes the sales of appliances such as refigerators, air conditioning units, computers and TVs.

The most prominent brands in these sectors in Latin America include Samsung, Dell, Acer, Electrolux y LG.


Eyewear

According to Fortune Business Insights, the eyewear market in Latin America will grow with a CAGR of 7.1% between now and 2028, when it will reach a volume of US$15 billion. This market includes general glasses (frames and lenses), sunglasses (prescription and non-prescription) and contact lenses to correct vision problems (e.g. toric lenses).


Hand Soap

Future Market Insights reports that the Latin America hand soap market will grow with a CAGR of 5.9% between 2022 and 2032. Over the course of the next decade, LatAm’s hand soap market could reach a value of US$6 billion. Colombia and Peru are among the most lucrative hand soap markets in Latin America. According to Future Market Insights, the top hand soap brands in Latin America include P&G, Unilever y Henkel.


Next Steps

Contact us to find out more about how we can help you deepen your understanding of Latin America’s consumer market or improve your position. Our market intelligence can help with this in a variety of ways, including:

  • Opportunity benchmarking
  • Consumer insights to understand your target market better
  • Market sizing to gauge potential of new products in different countries
  • Partner studies to evaluate potential partners in the region or find reliable distributors
  • Competitive intelligence to allow to see how your market rivals compare to you and understand their strategies

And much more.

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