Latin America economy is one of the most diverse, as is the culture of the region. It is a truly melting pot with a mix of influences ranging from native folklore, European habits, Roman Catholicism and African religions.
The Latin America cosmetics industry is continuously expanding and has placed itself as one of the fastest growing and most vibrant cosmetic industry across the world.
Brazil, Mexico, Colombia and Chile are the top markets in Latin America showing high growth rate in the cosmetics industry.
According to Goldstein Research, Latin America cosmetics market has reached a value of USD 31.98 billion in 2017, and it’s expected to grow 4.49% by 2025.
What’s trending in Latin America?
The Push for Sustainable Beauty
Climate change, the depletion of natural resources, and pollution are issues that influence the trend for conscious beauty in Latin America. With growing interest in pursuing more natural and healthy lifestyles, consumers are seeing that beauty comes from inside out, it is a more holistic way to take care of themselves.
The movement towards clean beauty and natural formulations is impacting the market as consumers want more control over the ingredients used in their beauty products and prefer using free-from cosmetics. Latin America, the most biologically diverse region on the planet, is becoming a core of sustainable sourcing projects with ingredients and cosmetic companies involved in sustainable sourcing projects that promote biodiversity while providing to the needs of local communities.
Green, organic, clean, nontoxic…the growing Latin American indie beauty brands that are committed to sustainable and ethical approach are gaining momentum both regionally and worldwide.
Hair Care Remains an Important Category
Latin America is the fourth largest hair care region worldwide. Caring for hair is a well-established movement in Latin America and the region, especially Brazil continues to be the go-to haircare market given its size, diversity and consumer engagement levels. Whereas for years straight hair has been a beauty standard, Millennials are now following the global trend of self-acceptance by embracing their natural textures and curls.
With climate change and increasing pollution, scalp care, anti-pollution, UV protection and detoxing treatments are gaining popularity among consumers. Tapping into personalization with products adapted to local preferences and culture is an opportunity for beauty brands to connect with the region’s consumers.
The Rise of Male Grooming
The men’s grooming market is growing dynamically with the younger generation of Latin men, millennials and generation z consumers, becoming more aware of their body and beauty care needs are breaking on stereotype macho attitudes to grooming and personal care. The rise of barbershops and the fashion for beards of all styles has also brought the category into sharp focus and opened up new niches for beard hygiene, styling and care treatments.
In the region, multi-functional beauty and personal care products are popular presenting more convenience and ease of use. Simplify men’s grooming routines with multiple benefit formulas and formats present key areas for innovation. In men’s grooming category there is space for brand propositions that go beyond everyday skin problems into enhancement products.
The Greater Role of Influencers
Cosmetics consumption in Latin America is driven by new beauty trends, particularly those related to social media, and YouTube tutorials and Instagram stars have boosted beauty sales in recent years. In major markets like Brazil and Mexico, a culture of influence exists where consumers turn to trusted peers and experts for recommendations.
As Latam is the region where shopping decisions are more pushed by influencers, beauty brands have a great opportunity to partner with them in order to create authentic connections with their audiences, leveraging the levels of engagement and driving purchases. Online platforms like Facebook, Instagram and Snapchat have a major influence on consumer behavior as users are making their beauty purchases based on social media posts.
Flourishing, Tech Savvy E-Commerce in Everything Beauty
Digital consumers in South America are one of the most active internet users in the world. Along with these digitally-connected consumers and Latin America being one of the fastest-growing e-commerce markets in the world, the region is full of promise for beauty brands that can lead the way with smart digital marketing. Being the biggest online market in Latin America, Brazil is undoubtedly the ecommerce heart and soul in the region.
Recently, the Brazilian group Boticario acquired a specialized e-commerce called Beleza na Web (Beauty on the Web) that shows the attractiveness of the e-commerce for the beauty market and the way to get immediate feedback and improve the customer experience.