Beauty and Personal Care in Latin America

Delivery

This report comes in PPT.

Key Findings

Direct selling making gains in recent years

Direct selling remains the biggest single sales channel in Latin America. In Brazil, where it has been gaining share in recent years, its success has been, in part, linked to its adaptation to digitalisation, including through e-commerce sites, WhatsApp and social media networks such as Instagram and Facebook, to promote sales and keep the customer base engaged. It is believed that more than 50% of consultants in Brazil now regularly utilise digital tools.

Jafra benefits from Betterware takeover

In 2023, Jafra was beginning to see the fruits of its takeover by Betterware. Jafra’s products have been integrated within Betterware’s extensive household products catalogue, which already had a solid client base. Jafra has also modernised its image and buying experience by updating product packaging, repositioning product lines to appeal to younger consumers, and implementing new sales tools like interactive catalogues.

Improving economy driving premiumisation in Mexico

A strengthening economy saw a shift in Mexican consumers’ priorities, prioritising quality over savings. This intensified the trend of premiumisation within mass beauty and personal care, with companies adding value to their mass products through the introduction of specialised ingredients and additional claims, although the improving economic conditions have also made premium products more accessible.

Less government intervention expected in Argentina

Under the country’s new president, Argentina is expected to see an end to government intervention in prices, public fees, exchange rates and import barriers. While this is designed to have a positive impact in the medium and long term, in the short term, particularly with inflation still not under control, it is expected to lead to a decline for beauty and personal care sales in 2024.