Potential of the masstige segment
Despite current economic difficulties, Brazil accounts for 32% of the revenues of this premium segment in Latin America, followed by Mexico (23%), Argentina (15%), Chile ( 8%) and Colombia (6%).
In Brazil, the premium market is driven by the fragrances, which accounted for 36% of the value of this sector in 2015. According to the market research firm, sales of premium personal care products in Latin America are expected to grow at an average rate of 5% per year by 2020, a slowdown compared to previous years when the segment registered an average of 8% real growth per annum from 2010 to 2015.
Against this backdrop in which purchasing power falls, the public begins to look for quality products, but with lower prices, those products known as masstige.
“The consumer of beauty products in Latin America is facing a difficult challenge. With more education, infrastructure, with the internet providing greater autonomy and access through different channels, they are looking for quality products,” says Fernando Cruz, senior analyst at Euromonitor International in Santiago. However, according to the expert, with limited purchasing power and slowdown in their economies, this consumer must search for alternatives to get the better quality products at lower prices. [1]
Multifunctional cosmetics
Another important trend in the personal care industry is the use of special ingredients, says another market intelligence company that brings its knowledge to the exhibition, Factor-Kline. Elaine Gerchon, the company’s project manager, says these product formulations, designed to improve performance, have grown from 40% to 45% in the global market over the past few years.
“This increasing popularity of multipurpose cosmetics has led to the increased consumption of special ingredients, which have multiple functions associated with a single ingredient. As an example, I cite the consumption derived from polypropylene glycol (PEG), which acts as a rheology modifier and has emulsifying properties,” explains Gershon. [2]
The Factor-Kline study analyzed the main regional markets – Brazil, China, Europe, India, Japan, Southeast Asia and the United States – into eight categories: surfactants, emollients, rheology modifiers, conditioning polymers, UV absorbers, fixative polymers, preservatives and emulsifiers. For the company, global expectations are for the personal care products ingredients market to grow at an annual rate of 2.8% between 2015 and 2020, exceeding US$10 billion by 2020. The UV absorbers category should lead the growth trend, followed by the category of preservatives and rheology modifiers.
In 2015, in-cosmetics Latin America brought together 184 exhibitors from over 40 countries and 2,760 unique visitors. Now, with the repositioning of the brand and a wider range of exhibitors and visitors from all over this part of the world, the expectations of the organizers are even higher. “We’ll be playing host to about 3,500 professionals who will get to know over a thousand products of 200 exhibiting brands,” said Daniel Zanetti, event director.
The complete schedule of free Marketing Trends presentations is listed at www.in-cosmeticslatinamerica.com/en/education/education/
