Premium products suffered a major hit in 2020 when the pandemic first hit the region, while consumers in some countries have since been looking for the best value for money against a backdrop of high inflation. However, premium products have been bouncing back strongly since 2020, helping to drive a recovery in value growth in 2022. Over the forecast period, beauty and personal care in Latin America is expected to see positive annual growth in both volume and value terms.
This report comes in PPT.
E-commerce made the biggest share gains in fragrances in Mexico in 2022, reaching a retail value share of 16%. This dynamism was in part thanks to the rising popularity of e-commerce sites from the country’s most popular department stores, such as Liverpool, Palacio de Hierro or Sears, but also new online alternatives that have emerged, such as Bellaroma, which specialises in the exclusive online sale of fragrances.
As a result of soaring inflation, increased costs and import barriers, a number of players were withdrawing from Argentina’s Precios Cuidados programme to focus on improving profit margins during 2022. Between the end of 2021 and the end of 2022, the products included in the Precios Cuidados portfolio in hair care had declined from 51 to 42 options, while no company remained involved in the programme in baby and child-specific products.
A trend towards more simplified beauty and personal care routines has been seen among Mexican consumers, for example in the shape of products with multiple benefits. This has seen the launch of products like Beiersdorf’s new Eucerin Hyaluron Filler facial cream, which offers moisturising, wrinkle prevention and sun protection, or the Old Spice Red Reserve range, which aims to blur the line between men’s deodorants and fragrances.
Natura&Co has sold Aesop to L’Oréal in a deal estimated at USD2.5 billion, which could see L’Oréal overtake Colgate-Palmolive in the Brazilian market in the short term. Grupo Boticário has also made some recent acquisitions, incorporating brands such as Dr Jones and Truss, strengthening its position in men’s grooming and hair care.
This is the aggregation of baby and child-specific products, bath & shower, deodorants, hair care, colour cosmetics, men's grooming, oral hygiene, fragrances, skin care, depilatories and sun care. Black market sales and travel retail are excluded.
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