The sign that a developing consumer market is maturing comes when consumers start progressing towards premium products, something that the organizer of in-cosmetics Brazil believes is now happening in the country’s cosmetics industry.
According to the latest market research from Euromonitor, the country now ranks as 15th in terms of global consumption of products that are deemed to be premium, a figure driven by a small number of high income consumers and a burgeoning middle class.
What this means on the ingredients side is increasingly sophisticated formulas with active ingredients and multifunctional ingredients that target both increased functionality and efficacy, something that is expected to be a key feature of the ingredients event when it opens its doors in Sao Paulo in September.
Market research points to more sophisticated products
The claim is also backed up by another market research group, Mintel, which highlights research showing that 42% of middle class and AB consumers bought more toiletries, fragrances and cosmetics, which helped give a 12% boost to the sector’s annual turnover in 2013.
What’s important about this data is the fact that it mainly reflects increased sales of products with a greater aggregated value, rather than higher volumes or SKUs.
This kind of data undoubtedly helped Reed Exhibitions, the organizers of this year’s first ever in-cosmetics event in the America, to hold it in Sao Paulo, which is also an economic and industrial hub, as well as being the nerve center for the country’s cosmetics industry.
Product functionality becomes more focused
Digging deeper into Mintel’s data reveals that the type of products that cosmetic and personal care consumers are using in the country are also becoming increasingly sophisticated and varied.
In the hair care category the signs of premiumization are more evident, with Mintel’s researchers pointing to products such as an increasing array of targeted conditioners, particularly moisturization formulas promising to repair hair, as well as anti-frizz products.
Evidence of this can also be seen in the deodorant category. An estimated 95% are said to use deodorants as part of their daily personal care routine, and the product offerings are getting more and more diverse.
In this category it is also interesting to note that, according to the Mintel research, deodorants are also being produced to meet with consumer requirements for more sustainable products and enhanced production values, which is leading to more recyclable packaging, in particular.
Brands and products lines are getting revamped
But the research also reveals that, as a whole, cosmetics and personal care companies already offering lines and brands that are targeted at consumers with a middle class and above average household incomes are expanding and offerings are being renewed to meet consumer demands.
All of these trends are obviously putting significant pressure on domestic and international ingredients providers to raise the bar by offering an increasing range of multifunctional, high quality and effective ingredients for the increasingly diverse product offering in Brazil and other Latin American markets.
The in-cosmetics Brasil event, which takes place at the World Trade Center in Sao Paulo, September 9 – 10, is expected to highlight these offerings, featuring international ingredients players such as AAK and BASF, together with domestic players, including one of the biggest in the country and the region, Beraca.