Skin Care in Latin America

Delivery

This report comes in PPT.

Key Findings

Sales continue to increase during the pandemic

Although many consumers in Latin America saw their spending power hit by the pandemic, the skin care performance has held up well across the region, particularly sales to middle- and high-income earners. With beauty spas and salons closed during lockdowns, consumers brought indulgent health and beauty activities into their homes to recreate their salon experiences and help distract themselves from the realities of the pandemic.

Dramatic growth in Chile

Skin care recorded phenomenal growth rates in Chile in 2021, with dermocosmetics and premium products performing strongly. One of the major factors driving the dynamic demand for skin care in Chile in 2021 was the fact that local consumers enjoyed greater financial liquidity as they were permitted to make successive 10% withdrawals from the pension system and received cash subsidies from the government as a result of the pandemic and its impact on the local economy.

E-commerce makes gains, but direct selling still leads

E-commerce made strong gains during the pandemic, especially in 2020, as it benefited from home seclusion and the closures of store-based retail outlets. However, direct selling still remains the biggest individual distribution channel for skin care products in Latin America. In Brazil, for example, locals trust sellers, known locally as “consultoras”, and are keen to learn from them about the latest products and beauty tips.

Positive growth expected over 2021-2026

Skin care in Latin America is currently expected to record positive year-on-year growth rates in both volume and real value terms over the forecast period. Although the e-commerce share remains relatively small, the omnichannel strategy will remain relevant and even essential moving forward, with companies that adapt their business models in this direction likely taking a fundamental step towards having a relative competitive advantage.