The future of marketing research in Central America

Economic trends, cultural differences and the digital age in Central America 

As Latin America emerges as a hub for digital commerce and consumer engagement, Central America stands out as an untapped opportunity.  While much attention has been given to markets like Brazil and Mexico, Central America has lagged despite its economic growth and rapid digital transformation, including mobile and broadband internet access expansion. With limited market research in the region, brands lack the insights to effectively connect with local consumers.

On the rise: Economic trends in Central America

Central America, comprising of Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica, Panama and Belize, has long been overshadowed by larger Latin American economies. However, recent economic trends indicate that the region is undergoing significant changes:

• Economic growth: According to the World Bank, Central America has shown resilient GDP growth, driven by remittances, nearshoring opportunities and investment in infrastructure. Panama and Costa Rica, for example, have positioned themselves as innovation and financial hubs, while Guatemala and Honduras benefit from robust manufacturing and agricultural sectors.
• Nearshoring boom: U.S. companies are increasingly shifting production closer to home, and Central America is benefiting. The CAFTA-DR free trade agreement (which includes the U.S., Dominican Republic and Central American nations) makes the region attractive for investment in manufacturing, textiles and tech services.
• Digital acceleration: The rise of FinTech and e-commerce is expanding digital consumer behavior, making online transactions more accessible across the region.

The digital age and mobile-first technologies

Unlike other regions that gradually adopted digital technologies, Central America has accelerated its shift, diving headfirst into mobile-first internet access. According to GSMA, mobile penetration in the region is projected to surpass 70% by this year, with smartphones becoming the primary tool for accessing information, services and social media. Let’s take a closer look at what this means:

• Mobile-first behavior: Many consumers are skipping desktops and going straight to mobile commerce, banking and entertainment. This presents a unique opportunity for businesses to engage audiences through mobile-friendly surveys and research methodologies.
• Social media accessibility: Platforms like WhatsApp, Facebook and TikTok play a central role in consumer engagement, making them prime channels for recruitment and research.
• Evolving consumer preferences: As internet access expands, more Central Americans are engaging with digital content, e-commerce and global brands. Understanding these preferences is key for companies seeking to enter the market.

The growing need for market research

Despite the region’s economic and digital growth, market research infrastructure remains underdeveloped. Many global studies group Central America into broader Latin America segments, failing to capture each country's cultural, economic and linguistic nuances. This lack of data has left businesses with blind spots when trying to connect with local consumers. Recognizing the importance of granular, country-specific insights for brands entering or expanding in the region is critical. 

Understanding cultural differences

Beyond economic trends and digital access, Central America’s rich cultural diversity is what truly sets it apart. Each country has distinct consumer behaviors, traditions and histories that must be considered. Brands that succeed here recognize that a one-size-fits-all approach doesn’t work. For example:

• Guatemala: With its strong Mayan heritage, Guatemala’s consumers value tradition and rapidly embrace digital banking and mobile commerce.
• Honduras and El Salvador: Both countries have seen economic shifts driven by remittances, influencing how families spend and save.
• Costa Rica and Panama: These nations have the region’s most developed economies, with strong middle-class consumer segments and high digital literacy.
• Nicaragua and Belize: While smaller markets, they have unique tourism-driven economies that present opportunities in hospitality, FinTech and e-commerce.

Understanding these distinctions is crucial for companies and brands aiming to enter the market successfully. That’s where our investment in high-quality data and insights comes in.

Investing in market research in Central America

Central America is no longer a secondary market; it’s a key player in Latin America’s growth. As economic expansion, digital transformation and consumer sophistication increase, the need for reliable, culturally nuanced data has never been greater.

Brands that invest in understanding Central American consumers today will be the ones that win long-term loyalty and market share tomorrow. So, the question isn’t whether companies should invest in Central America; the question is whether they can afford not to.

This blog post was originally published on Quirk's Media.