Breaking News: Central Americans Adopt Cautious Consumption Habits Amid Global Economic Uncertainty
According to a recent study by the international consultant Kantar, citizens of the Central American region are increasingly adopting cautious consumption habits due to concerns about the global economy. This shift in behavior is a direct response to uncertainties such as inflation, trade wars, and migratory phenomena, which are influencing consumer decisions and reducing household expenses both inside and outside the home.
Key Findings of the Kantar Study
The study, which focuses on consumption habits in the region during the first quarter of 2025, reveals that Central Americans are spending less and buying in larger volumes. This means they are opting for wholesale purchases or larger products at lower prices. The report also highlights that mainstream brands are gaining popularity over premium brands, as consumers prioritize value for money.
“The current Central American is a cautious consumer: it spends more intelligently, prioritizes the value-quality and moderates its purchases,” explains Fernando Montúfar, a researcher at Kantar. “It is prioritized to buy more volume spending less and are inclined to popular brands over premium, indicating a greater concern about the value for money.”
Impact on Household Expenses
Three out of ten Central Americans live paycheck to paycheck, with their salaries barely covering monthly expenses. The study indicates that 60% of households receiving remittances are being cautious with their spending despite no drop in income, as the price increase in consumer goods is forcing them to reduce purchases.
“Now we deprive ourselves of many things,” says Guadalupe de Avelar, a mother of three and a customer service employee. “Before I bought a box of tomatoes every two weeks; not today. I also look for cheaper shampoos and other items, and as a family, we deprive ourselves of many things.”
Economic Implications and Future Outlook
The economic situation in Central America, particularly in El Salvador, is causing consumers to reduce essential purchases such as dairy products and household care items. The urban basic basket, which includes essentials like bread, tortillas, beans, and fruits, had a cost of $245.80 in May 2025 for a family of four. However, for many households, this is still unaffordable, especially with the minimum wage barely covering basic needs.
Economists predict a regional growth projection of 3.5%, but concerns about global economic uncertainty, inflation, and U.S. trade policies are creating a moderate expectation that impacts consumption. The latest surveys indicate that seven out of ten Salvadorans do not believe that the recent wage increase will improve their quality of life.
With these economic pressures, consumers are forced to make tough decisions, often reducing essential purchases and prioritizing necessities over luxuries. This shift in consumption habits is expected to continue as long as economic uncertainties persist.
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