Latin America, beauty and personal care market opportunity
In recent years, the beauty and personal care industry has shown steady growth worldwide, in recent figures, it is estimated that the global market for this sector has a value of 180 billion dollars.
According to the Brazilian Association of Personal Hygiene, Perfumery and Cosmetics Industry, Latin America accounts for 14.1 percent of the world market, equivalent to an expenditure of 2.2 percent per capita per year. The main consumers in the region are Brazil (49.1%), Mexico (14.4%), Argentina (8.3%), Chile (5%) and Colombia (5%).
Mexico, being the second-largest market in Latin America, in 2018 had a value of 10 billion dollars, a figure that is only surpassed by the Brazilian market that reached 14,572 billion dollars.
Also, the situation looks different when breaking down the figure in per capita spending where Chile is at the top of the list with 182 dollars a year, while Mexico, Colombia, Peru, Ecuador, and Paraguay did not reach 90 dollars per year.
Latin Americans spend mainly on hair care items, followed by fragrances, men's grooming, skincare, and color cosmetics. In Mexico, the beauty and personal care market is forecast to reach a value of 10,649.8 million dollars by 2022 and is currently the third country with more production of these items which generates an investment of 433 million dollars per year.
The current consumer shows main interest in finding additional benefits in their products, preferably that work as a long-term treatment, there is also a growing interest in natural consumption, organic and with benefits for the environment, 50 percent of Latin Americans are willing to pay more for premium products.
Sales channels are also an important factor in product distribution, as the trend may be toward the dominance of online sales, but this sector also benefits from multi-channeling.