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.
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.
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, 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.
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.
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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