Our data analysis shows that the average age and family structure of Latin American households are changing rapidly. The main trend we see is that the region is rapidly aging: by 2025 over 50s will outnumber children. This suggests that families are becoming increasingly smaller. So, while the population continues to grow, the number of households is increasing at a much faster rate.
Consumers’ different life stages impact their FMCG choices, but what does this mean for your brand?
There are two groups that stand out. The first is Baby Boomers. These over 65-ers represent almost a quarter of all households of up to two people. At the other end of the spectrum, we have the under-34 Millennials.
Just under two-thirds (63%) of Millennials are in lower socioeconomic groups, but their incomes tend to increase with age. Family structures differs between the two generations: 51% of Millennial households have three to four members – the biggest proportion of any group, while 63% of Baby Boomers households consist of just one or two people.
Neither group contribute significantly to the growth of the FMCG basket, so present opportunities for industry and retail.
What is the omnichannel experience like for Millennials?
Many Millennials juggle work and parenting, trying to balance their time and finances. They often bulk buy from local, traditional channels and discount stores. The popularity of ecommerce is on the rise, with 27% of Millennials choosing it for their FMCG purchases.
This group visits the fewest channels and prioritises the most basic products. According to our consumer panels, when shopping outside the home they mainly shop in “on-the-go” channels, such as street vendors, particularly for snacks, such as chocolates, cookies and energy drinks.
Baby Boomers’ omnichannel routine
Baby Boomer families have more time and money. They shop more often and are more likely to do daily top-up shops for essentials – purchasing items in just a few categories. They shop in hypermarkets and supermarkets and prioritize Food and Beverage categories beyond just the essentials, especially in Dairy, Beverages and Home Care. When they go out, Baby Boomers prefer to dine in restaurants and – proportionally – they spend the most in this channel compared to all other age groups. Boomers spend almost half (43%) their disposal income on food and little luxuries.
It is vital for brands to connect with these groups at opposite ends of the age spectrum to drive volume and spending growth.
Discover more in our latest video, or contact us so we can help you to better understand your brand’s needs, its role in people’s lives and explore all available opportunities.
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