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Predicting growth is a tricky business, especially when it comes to which companies or industries will invest more in advertising.
However, studying sales growth patterns may offer some hints. That’s why we examined some recent figures for the product categories that have posted strong growth in Latin America in 2014 and in recent years. Reviewing these may give media agencies some ideas for pursuing new business and help marketers understand what Latin American consumers are spending their money on.
According to Euromonitor, sales of cosmetics in Latin America will grow by 7.2% a year between now and 2018. By 2018 the value of the beauty products market in Latin America will reach US$111.8 billion. The specific areas that will see the highest demand from Latin American consumers over the next 5 years are sun care, hair removal, male grooming, baby care and dental products.
According to the International Federation of the Phonographic Industry, digital music revenue in Latin America grew by 27.6% in 2013. And between 2010 and 2013 digital music revenue grew by 124% in Latin America. Currently Samsung and Google Play have started a partnership to reach this market: anyone who buys certain new Samsung devices gets a free six-month subscription to Google Play.
According to Moody’s, average annual growth for the insurance sector in Latin America has been at nearly 15% over the past 10 years.
According to Nielsen, total snack sales in Latin America reached US$30 billion in March 2014. As such, sales of snacks grew by 9% in Latin America between March 2013 and March 2014. The leading segment was cookies and cakes, responsible for US$9 billion of sales in Latam, followed by confections (US$8 billion) and savory snacks (US$7 billion). The favorite types of snacks in Latin America are yogurt, chocolate, cheese and ice cream.
According to a report from GlobalCollect and Newzoo, Latin America will have 14% growth in video game revenues by the end of 2014, higher than the projected growth for any region in the world except for Asia-Pacific, which will grow by 15% in this area. In generating US$1.38 billion in video games revenues, Brazil is the leading market, followed by Mexico at US$1.0 billion. Overall, the report estimates that there are 185 million gamers in Latin America and that gaming revenues in all of Latin America will reach US$3.3 billion in 2014.
Vitamins and Supplements
According to Euromonitor, between 2008 and 2013 sales of vitamins and dietary supplements grew annually by 5% in Latin America and only Oceania (consisting of Australia, Melanesia and New Zealand) grew at a higher rate in this sector. Euromonitor projects that vitamin and supplements sales will grow annually by 3% in Latin America between 2013 and 2018 to reach a total value of US$5.5 billion by 2018.
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