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In Latin America, strong economic growth does not always go hand-in-hand with the emergence of a robust middle class, according to market analyst Euromonitor International. In its report -From the bottom of the pyramid to emerging middle classes in Latin America- it said growth alone cannot be used as the sole indicator of an attractive market. What is key to successfully serving consumers in the region is a detailed knowledge of income, expenditure and demographic trends.
While the region is a similar size to China as a consumer market, in per capita terms consumer expenditure is far higher. Its chief advantages include natural resources, a young population, proximity to the US and increasing economic stability. However, all countries in the region remain notably unequal, with many consumers remaining bottom of the pyramid (BoP) poor. More than 60% of the region’s 87 million middle class households are in the two largest economies – Brazil and Mexico. And even the so-called middle class households vary widely in income from country to country, with those in Bolivia earning less than US $5,000 per year and those in Chile earning over $20,000.