News from Latin America
CONSUMER DEMAND for beauty prod- ucts continues to surge in Latin America. This new column in
HAPPI reports on the companies and the
trends that are driving the market.
Beauty product sales in Latin America
totaled $54 billion last year, and accounted for a 15.3% share of the global
market, according to data from the
Chamber of Latin American Cosmetics
Industry (CASIC). According to industry
sources, one in four products that are sold
in Latin America go through direct sales
channels. Brazil dominates the region,
with a 52.9% market share; followed by
Mexico, 14%; Venezuela, 10%; Colombia,
6%; Argentina, 5%; Chile and Peru, 3%
each; Ecuador and the Dominican Republic, about 1% each.
The biggest players in the region are
multinationals such as Colgate-Palmolive, Procter & Gamble, Unilever, Johnson & Johnson, L’Oréal, Avon and Reckitt
Benckiser. But there are also important
local companies that have grown to be-
Sueli Ortega has written for Isto É
and O Estado de São Paulo. Since
1987, she has served as a correspondent for Cosmetics International. In addition, she created the
beauty channel for El Sitio, an Argentinian website and
the Women Channel.
She has her own website, Cosmeticos BR and can be
reached at email@example.com
come multinationals in their own right.
This list includes companies such as
Natura, L´Ebel and Yanbal.
The Brazilian Association of Personal
Care, Perfumery and Cosmetics Industry
(ABIHPEC) reported in February that the
sector’s 2010 revenues totaled $16.2 (
ex-factory). That was a 12.6% increase over
2009 results and marked the 15th consecutive year in which the Brazilian market
grew at a double-digit rate.
Latinos Love Color
According to ABIHPEC data, sales of color
cosmetics in Brazil rose 9.7% in 2009 to
$2.17 billion. By segment, eye makeup
sales reached $550 million, while lipcolor
topped $710 million. One of the color cosmetic segment leaders is Contém 1g,
which sells more than 500 items in approximately 220 stores in the country.
Last year, 840 million units of nail color
were sold in Brazil. The biggest brands in
the category include Impala, Risque and
The Brazilian direct sale company
Natura, which boasts more than 1.2 million beauty consultants and operations in
Argentina, Chile, Peru, Mexico and
Colombia, had net revenues of $5.1 billion
in 2010. It competes in the door-to-door
sales channel with Avon, which has its
own army of 1.1 million consultants.
Eudora is the new brand from
Boticário Group, owner of the O Boticario
brand and 3000 franchise stores in Brazil.
With more than 300 SKUs, Eudora will
explore the sensual aspect of body care,
hair, fragrance, makeup products and accessories. The line debuted this month via
a multichannel system that includes
door-to-door sales, catalogs and e-commerce with social networking options to
enable interactivity among consumers.
E-commerce is expanding in Brazil.
The channel is led by Sacks, an online retailer of fragrances, cosmetics and toi-
letries, which was acquired last year by
LVMH. Sacks carries more than 270
brands, and its client base exceeds
830,000. According to sources, Sacks is
one of the top-three most frequently accessed pure-play e-commerce sites in
Brazil, attracting 4 million unique visitors
Outside Brazil, the largest color cosmetics markets in Latin America in 2009
were Mexico, $862 million; Colombia,
$212.2 million; Argentina, $174 million
and Peru, $131.3 million, according to Euromonitor International.
Latin America is also a growing market
for fragrance companies. Fragrance sales
in Brazil, for example, rose 5% to $4.8 billion in 2009, according to ABIHPEC. That
total gave Brazil a 13.1% share of the
world market. The direct sales channel
accounted for 72% of sales, followed by
franchise ( 20.5%) and retail ( 7.5%).
Fragrance suppliers certainly recognize
Brazil’s importance. Sources say that Givaudan, Firmenich, Symrise and IFF, the
four major fragrance houses in the world,
invested $90 million in the country during
2009 and 2010.
Elsewhere, fragrance sales in Argentina
rose 14.3%; Mexico added 4.7%; Peru,
2.3% and Colombia, 0.9%, according to
Euromonitor. In value terms, Mexico’s
sales topped $1.2 billion; followed by
Colombia, $580 million; Argentina, $414
million and Peru, $157.5 million. In Peru,
L’Ebel (Belcorp Group) is a major producer
According to ABIHPEC, Brazilian hair care
market sales exceed $6.1 billion. In second
place, according to Euromonitor International, is Mexico, at $1.6 billion, followed
by Argentina, $717.3 million; Colombia,