Brazilian Make-Up Market Rise
Brazil’s cosmetics market is set to rise substantially by 2018, despite the country’s economic slowdown.
According to a report by global insights company Canadean, the value of the Brazilian make-up market will increase by almost 60%, from BRL 7.1bn ($2.8bn) in 2013, to BRL 13.4bn ($5.3bn) by the end of 2018. This is despite concerns for the rest of the country’s economy, which registered a negative economic growth in three of the last quarters.
The average consumer of beauty products in Brazil is young and female. “Young women seek a professional image in the workplace and are more willing to experiment for special occasions,” said Kirsty Nolan, analyst at Canadean. “They are also more likely to follow the fashion, regularly changing their make-up look to keep up with the latest trends.
The report also confirmed the trend in Brazil for direct selling, which shows no signs of abating in the face of more convenient online retail outlets. For Brazilian consumers, the face-to-face experience with their local sales representative is an enjoyable, social experience, and still preferred to either online or in-store buying in more rural areas. See Citizen Sellers in The Social Sell, a report from our Anywhere Retailing Industry Trend.
American make-up brand Avon and Brazilian cosmetics and toiletries brand Natura are leading the market in this category. Together, they accounted for more than one half of retail-value sales in 2013, according to Euromonitor.
“International make-up brands need to adopt some of these principles in order to succeed in the Brazilian make-up market,” said Nolan. “Products need to be affordable and attainable for young women. Effective channels of distribution, such as agreements with established direct sellers or relationships with local shops and salons, are the key to success.”
Haircare and male grooming products are also fast-growing sectors of the Brazilian beauty market. For more on how the beauty market is expanding in the South-American country, see Focus on Brazilian Beauty and In-Cosmetics Brazil.