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 has very promising opportunities for the private sector business, 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 of the 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, from US $ 623,000 million annually 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.
Based on market information from the BDP in the sectors of health, education, food, information technology, financial services and housing, the report shows that at present consumers of the BDP in Latin America and the Caribbean are more urbanized, more connected, more educated and have more income for discretionary spending than before.
According to the report, economic growth in the region between 2000 and 2010 positively impacted the people of the BDP, while discretionary spending increased 33 percent, accounting for 18 percent of total household spending.
Among the sectors with the greatest weight in the profile of consumer spending of the BDP in the region are the food (US $ 209 billion annually), housing (US $ 184 billion per year) and transportation (US $ 82 billion annually). They represent 63 percent of global consumption of the BDP. While spending on information technology and communications from the BDP represents only 3.3 percent of total spending, the annual rate of market growth was 4 percent between 2000 and 2010.
Lourdes Gallardo, co-author of the publication and senior specialist Opportunities for the Majority Sector at the IDB, said: "This report is a useful tool for companies, financial institutions, investment funds and entrepreneurs interested in the existing market opportunities the segment of the base of the pyramid ".