Latin America is emerging as a key player in global consumer appliances, leading volume growth with a projected 2.7% increase for 2024. While the global industry grew by just 1% in 2024 and a modest 0.1% CAGR over 2019-2024, Latin America posted a remarkable 2.6% CAGR during the same period. This performance was driven by rapid urbanisation, rising disposable household incomes, and more frequent heatwaves. Mexico, Brazil and Chile lead this growth, with air conditioner sales leading the surge and contributing significantly to the forecast expansion.
Despite notable volume sales performance, Latin America grapples with significant inflationary pressure eroding household purchasing power, particularly among lower-income groups. Inflation is projected at 16% in 2024, the highest among global regions. While Argentina's persistent hyperinflation is a major contributor, the challenges faced by countries like Colombia and Mexico to curb inflation and steer back towards sustainable growth also play a critical role. Against this backdrop, a pressing question emerges: what factors fuel the growth of consumer appliances in such a challenging economic environment?
Adaptability and affordability
The resilience of consumer appliances in Latin America, despite significant challenges, is down to innovative retail strategies, such as department store campaigns, and the success of collective sales events like cyber deals. Brands have also revised pricing strategies to address affordability concerns, with Chinese brands leading the way through competitive pricing and features, resulting in market share gains and a dominant position in the region. As Latin America cements its role as a key player in global consumer appliances, with a forecast 3.3% CAGR for 2024-2029—second only to Middle East and Africa—affordability, innovation, and leveraging digital platforms will be pivotal to sustaining momentum and capturing opportunities in this dynamic market.
Chinese appliance brands in Latin America
Brands such as Midea and Hisense are rapidly establishing a strong foothold in Latin America, with innovative product lines and competitive pricing capturing significant market share. In recent years, imports of Chinese appliances to the region have surged. For example, Chile reported triple-digit growth in the import volume of Chinese refrigeration and air conditioning units in 2023, driven by demand for affordable, feature-rich products that address diverse consumer needs.
Air conditioners and home laundry appliances lead Midea's consumer appliance sales in the region, contributing 17% and 9%, respectively, of its volume in 2024, with Brazil and Chile as its primary markets. In air conditioners, Midea leads the market, achieving notable 29% sales growth over 2019-2024, while competitors like Whirlpool and Samsung experienced declines. Home laundry appliances reflects a similar pattern, with Midea’s unit sales growing by 110%, the only triple-digit growth among major brands, while Electrolux and Whirlpool sales contracted during the same period.
Hisense's regional market share remains modest, with Mexico serving as its strongest market. Within Mexico, the brand has made strides in refrigeration appliances, its notable 43% sales increase over 2019-2024 outpacing also-expanding competitors. What drives these Chinese brands’ success and remarkable growth against well-established international players? The answer lies in their ability to offer advanced technology at competitive prices, appealing to consumers seeking cost-effectiveness.
Chinese appliance brands are not limiting their expansion strategies to imports; they are also focusing on regional manufacturing to streamline logistics across Latin America. For example, Midea invested USD122 million to open a new factory in Pouso Alegre, Minas Gerais, Brazil, which can produce 1.3 million products annually. This is Midea's first fully-owned factory in Brazil, complementing two others in the country operated through a joint venture with Carrier: one in Manaus (air conditioners, microwaves) and the other in Canoas (commercial HVAC systems). This investment underscores Brazil’s importance as a key production and consumption hub in Latin America, reflecting its strategic value for the region.
Similarly, in 2024, Hisense inaugurated an industrial complex in Monterrey, Nuevo León, Mexico, with a USD250 million investment. The plant produces refrigeration and large cooking appliances, with plans to add laundry equipment and air conditioning systems. Serving markets from Canada to Argentina, the facility positions Mexico as a critical manufacturing and export hub for the Americas. The company aims to triple sales within five years, making it the largest refrigerator plant operated by Hisense outside China.
Conclusion
Latin America’s consumer appliances market continues to face the effects of inflation and wage stagnation straining household budgets. Chinese brands like Midea and Hisense address these challenges by offering competitively-priced products that deliver value for money. Their investments in manufacturing hubs in Brazil and Mexico improve supply chain efficiency, cut costs, and meet regional demand, helping them outpace competitors and grow their market share. By prioritising affordability and localised production, these brands have become key players in a challenging yet dynamic market.
Read our article, Five Applicances Trends to Watch in 2025 to learn about trends identificed at CES 2025.