Despite recorded inflation, Latin America concludes 2023 in a very positive way, especially in the consumption of fast-moving consumer goods (Fast moving consumer goods), and there are good prospects for 2024 with growth opportunities for brands in general, as explained by Marcela Botana, LATAM Regional Account Manager from Kantar during a webinar to explain the study results Consumer Insights Latam Q3 2023 – Special Issue: Sustainability.
The meeting also included Mara Shovacs, LATAM Commercial Director Written by Kantar Worldpanel and Casely Gomez, LATAM LinkQ Manager, World painting section From a quintal. The presentation covered the macroeconomic and consumption environment and what consumers are like in Latin America, understanding how brands can position themselves in a way that is consistent with consumer values, with a particular focus on sustainability.
“Latinos have been resilient,” Shufax said. But he remembered that we cannot forget that the consumer and his needs are changing. “So what we have to understand is that with a more basic basket than the rest of the regions, and also with this urgent need to do something for the planet – because we are already experiencing it directly – there are many opportunities and opportunities.” “The chances are so great.”
He stressed that expectations must be placed on the consumer who has changed in his habits and it is not easy for him to return to his previous habits, and that in addition to the whole context, what is known is that the buyer now makes more retail purchases, uses more channels to make purchases, etc. What makes brands grow today is to continue to gain penetration.
For Kantar, gaining penetration is the way to grow as a brand. “Eight out of 10 brands that win do so through penetration and winning more homes. This is also key when it comes to enforcing our strategies on how to embed sustainability, as we must do that with this micro retail environment. And one of the most effective ways to achieve Penetration is connecting values with consumers (…) and sustainability is one of the values that is growing the most in our region.
For Botana, if brands better understand these environmental concerns and how to adapt their behavior accordingly, it opens the opportunity to connect more deeply with existing buyers and capture more potential development focus in this type of customer.
Overcoming barriers
In this context, Shuvaks said that it is very important to understand that today sustainability in the region still exists beloved. “We see in brands and in RetailersAnd the need for change in the coming years.
He explained that even today, many sustainable products have higher prices, creating problems for environmentally active consumers (those who are very concerned about the environment and taking action on it). People with more purchasing power sometimes buy it, but in other cases they make the effort and that does not mean they are satisfied or that it is an ideal scenario. “In fact, they are looking to have products that are more accessible. The price of green products is still a big barrier and there is a lot of potential to amplify it and make it more affordable,” he said.
When comparing active environmental elements with Environmental considerations (They care about the environment, but take little action about it.) Although both groups believe they can make a difference in the world and plan their purchases in advance to support their beliefs, what their studies suggest is that the first group is able to Doing this, for example, through the packaging they buy, while the consumption barriers are very high for the latter and it is difficult for them to achieve what they really think and want to do, either because of high prices, lack of availability or because they cannot find the right packaging that Make them feel like they are buying sustainably.
Considering that Environmental considerations The group will be the largest in Latin America, where it will represent 40% of the population in 2025, and Schovacs stressed that there is a need to break down certain barriers related to price, availability and type of packaging, so that these products can reach those people who feel comfortable. able to purchase it. “This will create an important connection with consumers and will certainly expand those brands and retailers to understand the new consumer.”
They do what they say
He shared other data to show how we consume in the region today. For example, environmental activists with high socioeconomic status actually do what they say. “82% of households say they plan to buy in advance, and in their real behavior, what we see is that they carry fewer units per trip, they spread fewer brands; they are more controlled when purchasing. This makes sense because they Very strong value on sustainability and they guide their choices, which is why they are more cautious.
last vision An environmentally active factor is that 70% say they prefer products that do not contain plastic in their packaging. He stated that when they look at their purchasing behavior, for example, they buy significantly fewer liters of bottled water and fewer units of tissue compared to the average of other places.
Furthermore, 64% of these environmental activists claim that they are seeking to reduce consumption of unhealthy ingredients, buy fewer savory products, and try healthier products like oatmeal and nuts in the world of salty snacks.
Taking into account that the region reached a record level of growth in the third quarter of this year, and that by 2024 a positive scenario is expected in a large part of the countries (highlighting the growth of Brazil and the strong recovery in Colombia), and that 55 percent All homes in Latin America are environmentally friendly and/or Environmental considerationsPromoting sustainability is expected to play an important role in consumption.
“In this expansion, women environmental activists will be a group that will gain more and more importance, as well Environmental pastures Which will grow above average market trends. For this reason and the existential need to improve our system and make it more sustainable, brands have a great responsibility and opportunity to adapt and communicate better with this group.
