The environment has made consumers cautious. 54 percent of respondents believe their lives will be the same for the next three to four months and 31 percent do not expect the global economy to recover in the next year; however, 50 percent say they are confident about the future.

"In the face of the economic slowdown, this data takes on particular relevance, because unlike other times of crisis, it is evident that recent circumstances have made us much more resilient. Consumers in Latin America are aware of the challenges ahead, but reflect an unprecedented adaptability and willingness to change", said Francisco Olivares, EY's Consumer Industry Lead Partner for Northern Latin America.

EY has identified 5 consumer segments globally: for 27% affordability is a priority, 24% of respondents think caring for the planet is most important, while health and experience rank at 18% respectively; and for 13% the most relevant is society.

Demand for sustainability is driven by 27% of millennials, 30% of Generation Z focus on experience, while 39% of baby boomers and 28% of Generation X prioritize affordability.

Younger generations also continue to drive consumption through emerging technologies and experiences, with one in ten respondents in these age ranges indicating they are digital consumers: 17% already use digital currencies and 14% have used virtual technology for immersive experiences - such as metaverse - compared to 8% and 5% respectively of older generations.

The adoption of digital habits will require companies to create the right tools, a resilient supply chain and flexible logistics to serve customers. To do so, they will need to implement sustainability strategies that profitably serve people and the planet, through transparency integrated throughout the value chain.

Likewise, pricing and portfolio strategies will need to respond to new perceptions of value, as affordability becomes an important factor in today's inflationary environment.

"In this scenario, the four imperatives for consumer companies to consider are: focus on reviewing operations and portfolios to meet affordability; adapt sustainability strategies to deliver cost-effective solutions; balance investment in engagement to accommodate new digital opportunities; and finally, establish key performance indicators that reflect changing consumer values", said Gilberto Lozano, Consulting Partner for the Consumer Industry at EY Latin America North.