The Purchasing Power of the Poor in Latin America

An IADB study analyzes business opportunities at the base of the pyramid in Latin America and the Caribbean, which is described as a growing market worth $750 billion.

Tuesday, July 28, 2015

The IDB report highlights business opportunities at the base of the pyramid in Latin America and the Caribbean.

More than 400 million people make up a market of great opportunities

The market for base of the pyramid is US $759,000 million and there are very promising opportunities for private sector businesses, according to a report by the Inter American Development Bank (IDB) released today.

The report presents information on the market size of the base of the pyramid (BOP), socioeconomic characteristics, segmentation, spending patterns and factors related to demand. It also includes statistics on consumer preferences in this segment.

Drawing on national household income and household spending, the report estimates that the market for people who live on less than US $10 a day grew 22 percent in a decade, going from US $623,000 million a year in 2000 to US $759,000 million in 2010.

Today, two out of three Latin Americans make up this growing market - about 405 million people.

See full report (in spanish).

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Indian businessmen visualize Panama as a potential distribution center for products and services for companies in the manufacturing, pharmaceutical and services industries.

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The U.S. Hispanic population, a community of nearly 50 million people, is a real market potential that many U.S. companies (nor Central American companies) cannot ignore despite its preference for emerging markets.

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