12 More Growth Markets in Latin America for 2017
Despite the economic difficulties of the past couple of years, we’re starting to see certain markets in Latin America posting some significant growth. A while back we identified 11 of these LatAm growth sectors and interestingly, some of these dovetail with the 5 megatrends we have observed in the region.
When we completed that last growth markets article, we thought we had pretty much identified all of them—but we’re happy to say we’ve found a few more. Take a look.
The Latin American fashion market was worth US$160+ billion in 2016 but is poised to grow further. According to BMI Research, spending on clothing and footwear in Latin America will increase at a compound annual growth rate (CAGR) of 7.2% between now and 2021 to reach a total of US$220 billion. As such, Latin America’s spending on clothing and footwear will substantially outpace the growth in North America (1.8%) and Europe (1.9%) while equaling growth in Asia in this sector.
#1 Clothing and Footwear
>>>Opportunities for: Global fashion brands that seek to expand their footprints and also real estate developers and investors who could have a chance to build more shopping malls.
The antivirus software market in Latin America will grow at a CAGR of 7.78% between now and 2019, according to Technavio.
#2 Antivirus Software
>>>Opportunities for: software developers, especially antivirus brands with strong market share in the region
In 2016 Latin America had a modest 11.1% value share of the global Bakery and Cereals market and had a value of US$52.8 billion. But by 2021, Latin America’s Bakery and Cereals sector will reach US$63.7 billion and have a CAGR of 3.8% over the next few years. The Food and Drinks Specialist channel accounted for 58% of overall sales in Latin America’s Bakery and Cereals sector in 2016.
#3 Bakery and Cereals
>>>Opportunities for: Supermarkets, CPG companies
The Latin American medical tourism market is forecast to grow from a value of US$4.3 billion in 2016 to US$10.3 billion by 2021 with an impressive 18.9% CAGR. Medical tourism is often for cosmetic or dental procedures but can involve other types as well, and is spurred by consumers looking to save money while receiving quality care.
#4 Medical Tourism
Mexico, Costa Rica, the Dominican Republic, Brazil and Colombia are among the top medical tourism markets in Latin America. For example, the Colombian Immigration Agency reports that the amount of international passengers travelling for healthcare services has growth by 22.9% a year between 2012 and 2016
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>>>Opportunities for: Medical device and equipment manufacturers to supply hospitals, as well as Latin American hospitals that can market their services to tourists from the U.S., Europe and Asia
We’ve commented in the past about Latin America’s technology boom and its impact on society in both the near and long term, so the growth in spending on the Internet of Things in the region is not a major surprise. Between 2017 and 2021 the spending on the Internet of Things in Latin America will grow by a CAGR of 21.7%, a higher rate of growth than the Middle East and Africa (21.6%) and Central and Eastern Europe (21.2%).
#5 Internet of Things
>>>Opportunities for: IT companies, app developers and also medical device companies as smart devices connected to the Internet become more prevalent. Given the rise in smartphone use in Latin America and healthcare apps being developed, there’s significant potential here.
With increased government spending on infrastructure and resumed growth in construction (especially in hotels), the Latin American elevator and escalator market is expected to grow at a CAGR of 6.5% between 2017 and 2023.
#6 Elevators and Escalators
>>>Opportunities for: Construction companies and elevator/escalator maintenance companies
The rise in infrastructure spending in Latin America is also benefiting another sector: the asphalt paver market. According to Research and Markets, the asphalt paver market in Latin America will grow with a CAGR of 4.8% between 2017 and 2022. Tracked pavers have the highest volume share across Latin America, with Mexico and Brazil expected to drive demand due to growing investments in roads and highways.
#7 Asphalt Pavers
>>>Opportunities for: Construction equipment manufacturers
With the rise in diseases such as cancer and heart disease in Latin America, there is a growing demand for SPECT and PET applications that use radiopharmaceuticals. As such, Market Data Forecast projects that the Latin America nuclear medicine radiopharmaceuticals market is set to grow with a CAGR of 12.4% between 2016 and 2021 and reach US$1.06 billion in value.
#8 Nuclear Medicine Radiopharmaceuticals
>>>Opportunities for: Pharmaceutical companies and medical device manufacturers
With the auto industry investing more in new manufacturing facilities in Mexico and other countries, as well as growth in logistics and public transportation infrastructure, there has been a greater need for fire equipment.
#9 Fire Equipment Market
IHS projects that the Latin American fire equipment market will grow with a CAGR of 4.5% between 2015 and 2020.
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>>>Opportunities for: Manufacturers in the fire equipment space
Smart cameras are flexible devices that easily integrate with smartphone and PC applications, quickly sharing and uploading both photos and videos to social media platforms. One major use of smart cameras are for security monitoring in both homes and companies, as well as for industrial machine vision. According to Research Nester, between 2017 and 2024 the smart cameras in Latin America will grow with a projected CAGR of 31%, very robust compared to the global CAGR of 18.2% for smart cameras during the forecast period.
#10 Smart Cameras
>>>Opportunities for: Military and defense contractors, suppliers to public transit facilities, security firms and suppliers of infrastructure equipment to governments
These are essentially pumps that work to improve the heart’s pumping efficiency and ensure that there’s optimal blood flow throughout the body. Generally speaking, these cardiac assist devices are used to help patients with congestive heart failure. In Latin America, the demand for these products is likely spurred by the growing rate of heart disease in the region as well as the increase in older people who are more likely to experience cardiac difficulties. Market Data forecast projects that the cardiac device market in Latin America will grow at a CAGR of 7.45% between now and 2020 to reach a total value of US$151.5 million.
#11 Cardiac Assist Devices
>>>Opportunities for: Medical device manufacturers, though it’s important for such manufacturers to have a more accurate picture of the demand for these devices in specific LatAm hospitals. That kind of granular detail was a challenge to obtain in Latin America until the development of Global Health Intelligence’s LatAm hospitals database, which specifically focuses on verified medical equipment counts in dozens of crucial categories for nearly 90% of the hospitals in the region.
With population growth in the region and the amount of uncultivated land, farmers in LatAm have to produce good crop yields. This in turn has spurred demand for advanced farming based on IT to analyze land productivity and sustainability to improve production, particularly by monitoring plants and soil. According to Research and Markets, advanced farming in Latin America will grow by a CAGR of 15.8% between 2016 and 2022 to reach $541 million.
#12 Advanced Farming Products
>>>Opportunities for: IT companies to create M2M applications, as well as agricultural industrial firms to build drones and other devices that allow for robotics farming