The colour cosmetics market in Latin America managed to keep its head above water over 2011-2016. The category recorded a CAGR of 1.7% despite a decline in value occurring towards the end of the period, Chile and Argentina offsetting the impact of economic crisis in Brazil and Venezuela. Direct selling still holds strong as the core channel for colour cosmetics purchases in the region but retail infrastructure is rapidly improving and critically, expanding beyond urban centres.
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The colour cosmetics market managed to keep its head above water over 2011-2016 in Latin America, despite an overall decline in value taking place towards the end of the period. Chile and Argentina offset Brazil and Venezuela, as the former two markets benefited from premiumisation and the latter two felt the impact of economic crisis.
Make-up trends in Latin America tend to favour one area of the face at a time, be it a focus on the eyes or the lips, and both usually to the detriment of facial make-up. This pattern differs to trends globally where the face is the core canvas and focus of the majority of investment in products and care. Localised preferences are also apparent, for example in Brazil and Mexico lip products churn the most revenue, and in Argentina and Colombia, the eyes.
Despite the myth that direct selling has had its heyday, direct-to-consumer distribution models are still holding their own in Latin America, with a little help from tradition and technology. Aside from Chile, Venezuela and Uruguay, direct selling hovers around the 50% share mark or higher in most other countries. However, an improving understanding of the needs of communities beyond cities and urban areas is fostering investment in physical and digital retail infrastructure, sure to disrupt the landscape and support growth.
The movement away from cities and into the vast expanse of the remainder of the region is critical for the colour cosmetics market to amass new adopters since maturity is already setting-in in urban strongholds. Aside from reaching new non-urban consumers, growth in the region will be heavily buoyed by habitual usage over 2016-2021. In some smaller but fast-growing economies, such as Colombia, a rise in GDP per capita will be the most important driver of market growth.