Latest figures from Euromonitor International for the category in the region underscore this. The market researcher estimates that the current value for men’s shaving products, toiletries and fragrances was valued at $11.27 billion.
And the Euromonitor research team is predicting that this market value figure will grow significantly in the next five years, with a forecast growth in the period to 2022 of 23.1% that will put the value of the market at $13.9 billion, representing a CAGR of 4.2% over the five year period.
Stronger economic growth is the driving force
In the period 2012 to 2016, economic instability, particularly in the largest market, Brazil, undermined consumer confidence, but since 2017, stronger economic growth has returned and the much promised dynamism for men’s grooming is a reality again.
According to the Euromonitor team, growth is again expected in most countries throughout as per capita spending returns, with the one exceptions of Argentina and Venezuela, which both continue to be marred by economic issues that include hyperinflation.
The increased consumer spending is being driven by urbanization and middle class expansion, which is being met with an increased product offering for men that includes more personalized products with greater availability.
Latin men’s changing attitudes
In a region where machismo is a celebrated part of the culture, one of the stumbling blocks to men’s grooming market growth has been attitudes to personal care and an apathy towards taking care of their appearance.
But times are definitely changing in the region, influenced by changing attitudes worldwide which is helping to break down male stereotypes and inviting in a more liberal approach to masculine beauty, especially among the younger generation.
Concurrently, the trend for beards has also had an impact on attitudes, with a plethora of new product launches targeting the men’s beard care and shaving products being well received by men throughout the region.
Multinational brands lead the way
Because of the complex nature of distribution in the Latin American market, which is dependent on reaching the large percentage of Latin Americans that live in smaller urban areas, it is the multinationals that have the stronghold on the men’s grooming market.
Likewise, larger multi-national brands are more trusted and recognized by Latino men, who associate them with both quality and efficacy.
Those men’s grooming purchases are being made through the direct sales channel, which continues to be dominated by Avon, as well as hypermarket, supermarkets and independent retailers, but while the online sales channel remains small, it is also expected to see the fastest growth in the future.