Brazil and Mexico lead the largest markets in Latin America

Get to know the 3 largest markets in Latin America in 2022

Looking to invest in Latin America, but unsure about the region's business ecosystem? Curious about the largest markets in Latin America?

If your answer is "yes", then this is the article for you. Read on to learn a little more about this rich and diverse region, which has vast potential and is growing even as we speak.

But how to choose just one country from the 20 excellent options available to you? One way is to partner with an agency in Latin America. Another is to read this post, which examines the 3 largest markets in Latin America, as well as the most attractive and growing sectors in this emerging region.

The largest markets in Latin America

Each of the  20 countries in Latin America - which is expected to show a growth of 1.8% this year - have unique qualities. But 3 stand out as the largest markets in the region:

●        Brazil (GDP of 1,83 trillion U.S. dollars)

●        Mexico (GDP of 1,32 trillion U.S. dollars)

●        Argentina (GDP of 564,2 billion U.S. dollars)

So let's get to know a little more about these three countries.

Brazil

The Federative Republic of Brazil is the largest and most diverse economy in Latin America. With over 217 million people, the Brazilian market includes agriculture, industry, and technology and has a perfect business habitat for startups.

Brazil has more unicorns and a higher concentration of investments than any other country in Latin America.

Mexico

The second-strongest economy in Latin America is Mexico, the world's fifth largest emerging market and home to over 128 million people. According to Endeavor, Mexico is the leading Latin American market for expansion.

Argentina

Argentina is the third largest economy in Latin America. The country is rich in natural resources such as natural gas, lithium, and gold, and has an export-oriented agricultural sector and a diversified industrial base.

Like Chile, Argentina has a relatively high amount of startups which tend to expand to other markets.

Why Latin America?

Latin America's emerging economy is increasingly attractive to investors. According to UNCTAD's World Investment Report 2022, foreign speculation in the region recovered by 56% in 2021.

Latin American countries have a rich culture and favorable business climate, as well as a strong talent pool, growing infrastructure and expanding digital connections.

As we will see, many markets stand out in Latin America, including research, e-commerce and startups.

Technology market

Did you know that Brazil and Mexico are home to more Spotify subscribers than Germany and the United Kingdom, according to the World Population Review? And that the infrastructure solutions vice-president of Lenovo points to Latin America as one of the company's biggest markets?

E-commerce

Latin America is one of the top regions in the world in terms of e-commerce growth. According to the eCommerce Latin America Report, Mexico leads the way, accounting for 29% of all Latin American revenue. Brazil is next, with almost U$ 19 billion.

Startups

According to StartupBLink, Brazil is one of the most powerful innovation ecosystems in the world, and home to 30 unicorns (startups valued at over US$1 billion).

These six Latin American countries have a particularly startup-friendly ecosystem:

●        Mexico

●        Brazil

●        Argentina

●        Chile

●        Colombia

●        Peru

Market research revenue

A study recently published by the Statista Research Department ranked Brazil's market research revenue as the largest of all Latin America and the Caribbean (476 million U.S. dollars). Mexico was in second place, with 399 million U.S. dollars.

The top 10 research revenues in Latin America and the Caribbean are as follows:

  1. Brazil (476 million U.S. dollars)
  2. Mexico (399 million U.S. dollars)
  3. Colombia (147 million U.S. dollars)
  4. Chile (103 million U.S. dollars)
  5. Argentina (86 million U.S. dollars)
  6. Peru (86 million U.S. dollars)
  7. Ecuador (34 million U.S. dollars)
  8. Uruguay (15 million U.S. dollars)
  9. Dominican Republic (14 million U.S. dollars)
  10. Guatemala (11 million U.S. dollars)

While not included in the top 10, Panama is considered to be the fastest-growing market research sector in the region.

And these aren't the only sectors that are emerging. Agriculture, industry, and services are among the largest markets in Latin America as well. No matter which business segment your company operates in, Latin America is an ideal region for expansion.