Euromonitor tracks the growing Mexican luxury cosmetics market
There’s one area where the market is increasing in size even more rapidly - the luxury cosmetics sector.
Despite the recession affecting middle class incomes, according to Euromonitor International the Mexican premium cosmetics market grew by a staggering $3.7bn from 2007 to 2012, almost a 55 percent increase in size.
During the same period the colour cosmetics industry also increased in sales, from around $0.4bn per year to $0.6bn.
The Mexican beauty industry has gone from strength to strength in recent years, increasing in size by 5 percent in 2011.
Industry leaders have set a goal to increase per capita spending in Mexico from US $78 to around US $100 over a 5-10 year period.
The Latin American cosmetic market as a whole increased by 20 percent in 2010 and is now the 4th largest in the world.
Overall, Mexico’s premium goods market is projected to expand by 12 percent in 2013, compared to an increase in total retail sales of 3.7 percent.
Spending in Mexico on other luxury products- such as fine wines, expensive accessories and designer clothes - increased from $2.16bn in 2004 to $3.88bn in 2012.
All of this comes despite the country’s economic troubles- it is suffering from relatively slow growth in 2013, and also has a standard of living less than half that of its NAFTA partners of Canada and the US.
Wealthy couples with dual incomes but no children- nicknamed “dinks”- are on the increase in Mexico and have nearly doubled in numbers since 2005.
An article by Reuters published this month suggests that this small subset of the Mexican population is fuelling much of the spending on luxury goods.
These couples have been credited with leading to an increase in spending on luxury products, ranging from designer clothes and accessories to foreign holidays.
Powerful social changes- such as increasing education for women and a much lower birthrate - down from 5.7 babies in 1976 to 2.2 in 2012- have been suggested as the reason for this trend.