In 2024, sales of vitamins and dietary supplements are expected to grow by 3.2% in Latin America in constant, fixed exchange rate USD terms. Climate change, mental health and lower purchasing power have affected consumer patterns and needs during 2024 and affected categories in different ways. Brands that are able to innovate in the face of these changes are outpacing the industry, while government recommendations on how to face new and unexpected epidemics are directly impacting some categories. These needs are resulting in the emergence of new categories.
Climate change is not only about flu seasons
During 2024, Latin America has been strongly affected by the impact of climate change. Hot temperatures and humidity have expanded in territories where this was unexpected, geographies with no history of such weather, fostering the migration of mosquito-borne diseases such as dengue, Zika virus, chikungunya and Oropouche to new territories and cities, causing a broader epidemic situation in the region.
Governments from many countries recommend that the population treat these diseases with over-the-counter (OTC) pain medications like acetaminophen and warn them about the dangers of using ibuprofen or aspirin due to haemorrhagic risk. As a result, consumption of acetaminophen is expected to surge in affected countries in 2024.
Floods have also impacted many countries across Latin America in 2024. This has resulted in drinkable water shortages and a greater demand for digestive remedies.
Turbulent times bring mental health top of mind
Besides the stress of natural disasters, Latin America is facing sociopolitical instability in many countries and security issues that add an additional layer of anxiety to the local population.
Sleep aids is expected to grow in 2024 through molecules such as melatonin, magnesium, ginkgo biloba and CBD. These products are purchased not only for adults, but also for children, especially melatonin.
The biggest barrier to expanding the potential for sleep aid products is the legal informality of the region that can offer consumers easily attainable Rx options like zopiclone that they can access even without prescriptions
Source: Euromonitor International
High rates of stress are also pushing consumers towards gut health solutions like probiotics, cannibalising OTC digestive remedies in some countries, especially in Ecuador, the market in the region with the highest per capita consumption of probiotics.
Women’s health is an incipient but growing demand in Latin America, and we are already seeing some categories like hair loss treatments expanding with women-focused options. Other well-positioned products to cope with mental health issues are omegas, now explicitly positioned around mental wellbeing, CBD, and mushrooms.
Lower purchasing power drives new strategies in the market
Shrinking purchasing power has limited sales of prevention solutions, dragging down growth in some vitamins and dietary supplements categories
Source: Euromonitor International
Ecuador and Argentina have seen negative growth in vitamins, while the growth of other categories has suffered due to the entrance of cheaper brands and private label, such as tonics, ginkgo biloba, and ginseng. In Colombia, consumers are trading down to purchasing individual blister packs rather than purchasing a whole container. Central American consumers have opted for international shopping to reduce costs, including purchases through Amazon and other e-commerce marketplaces, as foreign prices are cheaper than domestic ones.
Small local brands, generics and private label have grown as cost-effective alternatives, while informal markets have also expanded to reach consumers. The prevailing macroeconomic environment means consumers trade down and incorporate some prevention categories like probiotics as treatment solutions. The multifunctional approach of probiotics suits the increasingly price-conscious consumers of the region, who find these products to be cheaper than buying individual digestive remedies for each specific digestive ailment.
Generics, innovation and advertising will be key to drive growth in the region
Going into 2025, vitamin and dietary supplement categories that can be positioned as treatments rather than prevention will show strong growth
Source: Euromonitor International
Innovation in flavours, positioning and formats will help build consumer awareness for these categories. However, price will remain the top consideration for consumers, and value for money will be highly appreciated.
On the OTC side, generics, private label and small local brands are expanding, affecting category value across the industry. Despite this situation, powerful advertising campaigns have proven to be effective. One example is the evolution of Allegra in Peru, growing by an expected 13% in 2024 while antihistamines allergy remedies is set to experience a 22% decline, in local currency terms. This is thanks to an extensive campaign including social media that features different consumer segments and lifestyles, including children and outdoor and indoor experiences. The campaign emphasises that it could balance active lifestyles through the tagline, “Don’t let the allergy dominate you”.
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