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Euromonitor Identifies Top Trends for North, South Americas
Posted: February 22, 2013
Direct selling represents more than a quarter of all beauty and personal care sales, which is the highest regional share in the world. As for specific beauty products, mass cosmetics—or products at a lower price point—represent more than 90% of sales in every country in Latin America, whereas premium cosmetics account for 35% of sales in Canada and the United States.
“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 Euromonitor research manager Sean Kreidler. “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 United States lead product innovation and customer shopping experiences.”
More Trends Highlighted in the e-Book
Direct sellers continue to expand in Argentina and lead the market in Bolivia. Brazil, on the other hand, is seeing a push toward store-based retailing, with the expansion of beauty specialist retailers. Several other Latin American countries are experiencing strong retail growth as pharmacies and hypermarkets are now reaching consumers where only direct sellers ventured before.
Middle income consumers drive beauty and personal care growth throughout Latin America, most notably in Brazil and Peru. 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 battling surging inflation that has eroded consumers’ purchasing power.
Men’s grooming continues to shine in Bolivia, Brazil, Canada, Chile, Costa Rica, Peru and the United States; however, men’s grooming might struggle in Colombia, the Dominican Republic and Ecuador where future potential lies in men increasingly making their own purchasing decisions.
Premium products keep growing in Chile, Costa Rica and Mexico and remain a priority for many consumers in Venezuela, despite poor economic conditions. In Canada, premium brands are recovering to drive growth.
Product innovation is growing rapidly in Bolivia and México. Canada and the United States are seeing advanced skin care technology development, and the demand for products containing natural ingredients present growth opportunities in Colombia, Costa Rica and the Dominican Republic.
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