Latin America is one of the most diverse regions in the world with more than 600 million people from various cultures, including Latinos, Portuguese descendants, African descendants, Dutch, French and more.
The population is also young and digitally connected. Euromonitor data show that 69% of people in the region are either millennials, Gen Z or Gen Alpha, and 93% of homes have at least one smartphone.
Why are these factors important? Because this insight helps you better understand the drivers behind consumer behaviour in Latin America. Strategies that work in Asia or Europe, for example, can’t simply be plugged and played into this unique region.
Brands that operate in or are looking to expand into Latin America this year should be watching these two consumer trends. Let’s take a look.
Progressively Polarised
Progressively Polarised is the first significant consumer trend for 2024, which stems from the influence of social and political ideologies on brand perception.
Latin America is highly divided by social and economic dynamics. For example, Argentina’s 2023 general election resulted in mass protests and strikes over economic and labour reforms. Several elections in 2024 are expected to create more heated debates in the region, including El Salvador, the Dominican Republic, Venezuela, Panama, Uruguay, Mexico and the US.
A local Brazilian brand that embraces a socially forward agenda is Negra Rosa, which creates and formulates beauty products catered to the Black community. Developing tailored products for certain ethnicities or cultures in a diverse region like Latin America should be a priority for brands that want to attract consumers.
Progressively Polarised: Recommendations for brands
- Align with evolving consumer identities and personal values
- Embrace the diverse cultural roots and values of the region
TikTok Economy
The second consumer trend to focus on this year is TikTok Economy. This video-first social platform has seen rapid growth in Latin America and is giving these young, connected consumers a voice.
Organic content on TikTok has the power to shape Latin American consumption, with big implications for brands. From viral videos to product reviews, TikTok is a platform for discovery, which presents both benefits and challenges for brands. Two examples: the #BookTok community, which offers book reviews that can boost readership, or the ability to quickly search for cost-effective dupes of brand-name products.
Euromonitor expects USD7.4 billion to be spent on e-commerce purchases via livestreaming in Brazil, Chile, Colombia and Mexico this year, up 35% from 2023. That growth validates the importance of the TikTok Economy trend in Latin America.
TikTok Economy: Recommendations for brands
- Capitalise on the growth of TikTok in Latin America and use the platform as a channel to reach consumers
- Monitor trends and leverage organic, user-generated content as a strategic tool
Navigating consumer trends in Latin America
The multicultural, diverse landscape presents unique opportunities to connect with these consumers.
Brands in Latin America should consider the impact of the Progressively Polarised and TikTok Economy trends on their strategies in 2024. The way companies respond to social and political topics must align with the values and preferences of their target audience. And organic content that goes viral on TikTok has the power to influence sales and brand perception.
Stream our on-demand webinar to learn more about these two consumer trends in Latin America.