According to Euromonitor, The Americas remains a divided beauty market as mass products continue to drive growth in Latin America and prestige beauty fuels growth in the north.
“The Americas continued to be a dynamic hemisphere for Beauty and Personal Care products in 2012 with more potential for growth in 2013,” says Latin American research manager, Sean Kreidler.
The latest research finds mass cosmetics as continuing to represent over 90 percent of sales in every country in Latin America, while premium cosmetics account for 35 percent of sales in Canada and the US.
“Latin America is very active in expanding awareness with its consumer base by way of direct selling and expansion with modern store-based retailers. In North America, Canada and the USA lead product innovation and customer shopping experiences,” Kreidler reveals.
Divided in terms of demand
In regards to direct sellers, Euromonitor predicts them to continue to expand in Argentina and lead the market in Bolivia. However, Brazil is said to be seeing a push toward store-based retailing, with the expansion of beauty specialist retailers.
“Direct selling represents over a quarter of all beauty and personal care sales in Latin America – the highest regional share in the world.”
Meanwhile, premium products are reported as continuing to grow in Chile, Costa Rica and México and remain a priority for many consumers in Venezuela, despite poor economic conditions, even in Canada premium brands are recovering to drive growth.
In Bolivia and México, the market researcher finds product innovation as rapidly growing as Canada and the US sees advanced skin care technology development, and the demand for products containing natural ingredients present growth opportunities in Colombia, Costa Rica and the Dominican Republic.
Finally, Euromonitor reveals the male grooming sector as continuing to shine in Bolivia, Brazil, Canada, Chile, Costa Rica, Perú and the US; however, it warns that men’s grooming might struggle in Colombia, the Dominican Republic and Ecuador where future potential lies in men increasingly making their own purchasing decisions.
According to the report middle income consumers are the driving force behind beauty and personal care growth throughout Latin America, most notably in Brazil and Perú.
"Sound economies are giving rise to a growing middle class in most of the region, whose expanding disposable incomes help fuel Beauty and Personal Care demand."
On the other hand, Argentina and Venezuela are found to be battling surging inflation that has eroded consumers’ purchasing power.