Hair Care in Latin America

August 2022

Hair care in Latin America has taken something of a battering in recent years, with Argentina already in recession prior to the pandemic, COVID-19 restrictions hitting consumer spending power across the region from 2020, followed by global inflationary pressures. Nevertheless, after the declines seen in 2016-2021, hair care is expected to record positive growth over the forecast period.

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Key findings

Pandemic and inflation impacting sales

Consumers in Latin America have seen their spending power buffeted in recent times. In Brazil, for example, when COVID-19 hit the country in 2020, many locals were still struggling to recover their lost purchasing power from the 2015-2016 economic crisis, while, in Argentina, consumers were grappling with sky-high inflation rates, among other things. As a result, most countries in Latin America recorded a marked decline in hair care in one of 2020 or 2021 – and sometimes in both years.

Alicorp quits Argentina

Hair care is a relatively concentrated competitive landscape in Latin America, with the “Big Three” of Unilever, L’Oréal and Procter & Gamble accounting for more than half of overall regional value sales. While Brazilian company Natura&Co doubled its regional share in the pandemic, Alicorp, faced with the Precios Cuidados programme and the country’s weak economic climate, announced its departure from hair care in Argentina, selling its brands and production facilities to the local management.

E-commerce gains share

E-commerce, warehouse clubs, drugstores/parapharmacies and direct selling were among Brazil’s more successful hair care distribution channels during the pandemic. While e-commerce has grown its sales and share across most fmcg industries, direct selling benefited from its potential for revenue generation or complementary income in volatile economic contexts, despite difficulties with face-to-face selling. Warehouse clubs are a popular value-for-money option, while drugstores/parapharmacies were among the few channels allowed to remain open throughout the pandemic.

Positive growth expected over 2021-2026

Hair 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. While most consumers will continue to favour value-for-money options, there will nevertheless be a growing trend towards natural products and ingredients across the region.

Key findings
Weak performances in Latin American hair care
After the historic period’s declines, positive growth is expected from 2022
The regions’ three biggest markets all post negative CAGRs in 2016-2021
Perms and relaxants and styling agents suffer in the pandemic
Colourants record the greatest actual losses over the 2016-2021 period
Pandemic and inflation impacting the market in the latter part of the 2016-2021 period
Grocery retailers continue to dominate hair care sales in Latin America
E-commerce sees strong growth but still has a limited presence in hair care
Concentrated competitive landscapes at a national level
Unilever, L’Oréal and Procter & Gamble still clear of the field
Brazil and Mexico the main revenue generators for the leading players
Natura moving up the rankings
Positive value growth expected for hair care over the forecast period
Increasing development of natural products and ingredients expected
Rising GDP will be an important driver of regional growth
Argentina: Market Context
Argentina: Competitive and Retail Landscape
Bolivia: Market Context
Bolivia: Competitive and Retail Landscape
Brazil: Market Context
Brazil: Competitive and Retail Landscape
Chile: Market Context
Chile: Competitive and Retail Landscape
Colombia: Market Context
Colombia: Competitive and Retail Landscape
Costa Rica: Market Context
Costa Rica: Competitive and Retail Landscape
Dominican Republic: Competitive and Retail Landscape
Dominican Republic: Market Context
Ecuador: Market Context
Ecuador: Competitive and Retail Landscape
Guatemala: Market Context
Guatemala: Competitive and Retail Landscape
Mexico: Market Context
Mexico: Competitive and Retail Landscape
Peru: Market Context
Peru: Competitive and Retail Landscape
Uruguay: Market Context
Uruguay: Competitive and Retail Landscape

Beauty and Personal 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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