Product innovation and wider distribution drive Brazilian cosmetics market
Brazil is one of the world’s largest beauty and personal care markets and accounts for more than half of total sales of the Latin American market as whole, and as such has seen multinational companies set up Latin American hubs in the country.
Depilatories and color cosmetics record biggest growth
Euromonitor figures have revealed that most product sectors within the Brazilian beauty and personal care market experienced double-digit growth between 2009 and 2010.
Hair care is the largest category within the beauty and personal care market, with a value of $7.9bn, although the 10% growth rate recorded during this period was one of the lowest. Depilatories ($192.9mn) and color cosmetics ($3.26bn) recorded the biggest increases, with growth of 29.4% and 27.8% respectively.
Euromonitor notes that while innovation has led to more sophisticated products being launched, mass offerings still represent the majority of sales. Avon, the second biggest brand in Brazil behind Natura, was highlighted as having consolidated its strategy in this area by offering masstige fragrances.
Investments in distribution reap rewards
Avon and Natura have both adopted a direct selling approach, and the above-average growth recorded in this retail channel was attributed by Euromonitor to investments in large advertising campaigns, sophisticated new products and an increase in the number of sales representatives.
Parapharmacies and drugstores also reported above average growth. Euromonitor forecasts their market share to increase in future on the back of the resolution of the Brazilian health surveillance industry Anvisa to move OTC products behind the counter, thus freeing up shelf space in a move that is expected to benefit beauty and personal care brands.
While growth in Brazilian beauty and personal care market is expected to continue, Euromonitor notes that value growth in constant value terms is expected to be slower than that recorded in 2009-2010.
Depilatories, color cosmetics and sun care are categories are tipped to be the highest performing categories in future, boosted by improved distribution, higher penetration in some lower-income groups and more frequent purchasing of these products.