This is the fifth post in a five-part blog series focused on the consumer products industry.
Between 2002 and 2012, Latin America experienced impressive growth of its middle class as the incomes of the poor were rising at a faster rate than the incomes of the rich. Many consumer-packaged-goods (CPG) companies leveraged this progress as an opportunity to expand their products into Latin American markets and capitalize the middle class as a new customer base. However, the growth rates of poor incomes significantly slowed down after this “Golden Decade” due to economic crises and depression. The incomes of the rich continued to climb even higher, leading Latin America to be the most unequal region in the world. While the middle-class has expanded, it is certainly not thriving and has had relatively low purchasing power. This is why Latin Americans are focused more on saving and spending wisely, and the region's consumption trends highlight that people purchase CPGs heavily based on their perception of the product’s value.