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Latin America is a melting pot of cultures, a diverse mix of climates and, as a result, offers a wide variety of markets. Global investors are attracted to the region because with 660 million residents, it is one of the most populated areas in all of the world and offers a vast array of expansion possibilities.
All Latin American countries show potential for business expansion, but Brazil and Chile are top contenders for international expansion, with their relatively high internet adoption, fast internet speeds, and impressive bank account penetration. Another top contender for expansion is Mexico, where many international firms first begin their Latin America development strategy.
Business Opportunities in Latin America
E-commerce: After the pandemic, e-commerce adoption in the region grew by 63.3%, almost double that of the US, and four times as much as China during the same period. According to a study by Google’s International Growth Team, e-comm adoption in South and Central America opened up significant opportunities for domestic firms and new market entrants to reach millions of new consumers, ready and willing to enjoy the convenience of shopping online.
Venture Capital Market: If widespread digital adoption is Latin America’s tech enabler, venture capital (VC) investment is typically the driving force behind it. According to Google's International Growth Study, between 2017 and 2021, Venture Capital investment in Latin America saw an 18X increase, from US $855 million to US $15.3 billion. High levels of investment have created a thriving environment for entrepreneurs and business development.
Agricultural and Food Sectors: Thanks to diverse climates across the region, from the tropical rainforests of Brazil to the mountains of Chile, Latin America offers a wide scope of products, with room for business development even in the most remote regions.
Green Energies: With the impending climate emergency, countries like Chile and Argentina are ripe for opportunity in the wind, solar and green hydrogen energy industries.
Infrastructure and Construction: South America is investing in projects to strengthen transportation and infrastructure throughout the region, improving and extending vital services like road and railroad networks and developing clean and renewable energy.
Connecting people around the world
As BusinessHub Consultants we guide and advise companies hand-in-hand with their expansion strategies in Latin America. This year, we’re supporting ITPC Santiago, the Indonesian Trade Promotion Center in Chile, at the Espacio Food & Service, event where they will be presenting six brands in the food sector that are looking for an opportunity in the Latin American market.
After the pandemic of COVID-19, the health industry gained great importance, not only in terms of infrastructure, but also in terms of equipment. That’s why we’ll be participating on behalf of the Georgia Department in ExpoHospital, the only and main event in the Chilean industry where you can find different alternatives to health solutions. There, they will be presenting different products of medical technology.
Your Business Strategy for Expansion to Latin America
Latin America offers abundant opportunities for business development. With so much diversity between countries, economies, and industries, the prospects are extensive and suitable for foreign investment and expansion from all over the world.
Let us help you create a strategy that suits your business. For more information about business development in a specific country or to begin a custom assessment of opportunities for your industry, reach out to Gonzalo Suez at gsuez@businesshubconsultants.com. We are happy to offer a complimentary consultation and we look forward to helping you get in touch with the best prospects for your company. Read more about our business consulting services in Latin America on our website.
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