Exploding Sales: The Most Popular Online Product Categories in Latin America
As the eCommerce market in Latin America continues to grow, it is important for sellers to stay informed about the trending product categories in this region. Based on data and industry insights, we will explore the most popular categories in the region, including electronics, toys and games, home appliances, beauty and skincare, and apparel and accessories. By staying informed about these trends, sellers can gain a better understanding of which products to offer and how to position themselves competitively in the Latin American market, ultimately increasing their sales.
The Latin American consumer electronics market is expected to see significant growth in the coming years, with a compound annual growth rate (CAGR) of 8.4% projected for the period from 2022 to 2027 (Mordor Intelligence). This growth is driven by consumers’ desire for advanced, innovative technology that makes their daily lives more simple. Demand for smart accessories, smart home devices, and other smart home technologies is increasing, particularly in countries like Mexico, Brazil, and Argentina. This presents a prime opportunity for retailers to capitalize on the high demand for smartwatch devices and other popular electronic products like speakers, streaming media players, and learning toys.
Toys and games
There are several reasons why toys and games are among the most popular product categories in Latin America. One key factor is the large population of children and young people in the region, which are more likely to play with toys and games. In the United States, individuals aged 0 to 14 years old make up only 18.24% of the population, while in Latin America, that percentage is 23.8%. In particular, countries like Mexico and Argentina have a high percentage of young people at 25%.
The popularity of some toys and games in Latin America may also be influenced by trends and preferences in other parts of the world, as many Latin American consumers are exposed to international brands and trends through media and other channels.
Within this category, some of the top-selling products include video consoles, video games, branded toys, dolls, sports games, board games, and stuffed animals.
The Home Appliances segment is a widely popular product category in the Latin American eCommerce market. According to data from Globaldata, in 2021 the region saw a 9% growth in household appliance sales, bringing the market value to $13 billion. Brazil, Mexico, and Argentina are the driving forces behind this growth, with Brazil alone accounting for half of the Latin American market. Smart technology and voice recognition are also driving the demand for these products. In the small appliances segment, it’s worth noting that light fryers, small vacuum cleaners, and multi-cookers are becoming increasingly popular among consumers.
Beauty and Skincare
The cosmetics industry is on the rise in Brazil. Skincare products like toners, cleansers, anti-wrinkle creams and facial creams are leading the market. Followed by makeup, perfumes, and hair care products. Report Ocean predicts that the market will experience a compound annual growth rate (CAGR) of 5% from 2022 to 2028. In the first half of 2022 alone, the market for cosmetics, personal hygiene, and perfumery in Brazil saw a 10% increase in sales, according to the Brazilian Association of the Personal Hygiene, Perfumery, and Cosmetics Industry. In addition, Beauty and Skincare products are also thriving in other countries such as Mexico, Argentina, Colombia, and Chile.
As illustrated in the graphic below, perfumes and fragrance products saw a significant increase in online searches in Brazil in 2022, with a 100% increase compared to the previous year. These findings come from Google Trends.
Skincare product searches on Google remained at a high volume, continuing to be 300% higher than they were in 2019.
Apparel and accessories
The apparel and accessories industry has had to accelerate its digital transformation in order to remain competitive in the Latin American market. According to Euromonitor, this product category saw a 126% increase in eCommerce sales in 2020 due to the pandemic. As of now, the apparel and accessories market in Brazil is valued at $6.91 billion, according to eMarketer data. Despite a preference for in-person shopping, marketplaces and eCommerce sites still account for nearly 46% of total sales.
Retailers looking to sell apparel in Latin America should keep in mind that the warm season runs from December to March and the cold season from June to September.
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