Beauty industry remains divided in the Americas

The Americas remains a polarised beauty market, with mass products driving growth in Latin America and prestige beauty fueling growth in the north, according to new research from Euromonitor. The market research agency found that mass cosmetics continue to represent over 90% of sales in every country in Latin America, while premium cosmetics account for 35% of sales in Canada and the US.

Direct selling meanwhile, represents over a quarter of all beauty and personal care sales in Latin America – the highest regional share in the world. Direct sellers continue to expand in Argentina and lead the market in Bolivia, while Brazil on the other hand, is seeing a move toward bricks and mortar retailing.

"The Americas continued to be a dynamic hemisphere for beauty and personal care products in 2012 with more potential for growth in 2013," said Latin American research manager, Sean Kreidler. "Latin America is very active in expanding awareness with its consumer base by way of direct selling and expansion with modern store-based retailers. In North America, Canada and the US lead product innovation and customer shopping experiences."

The study also found that middle income consumers are driving beauty and personal care growth throughout Latin America, most notably in Brazil and Peru. At the other end of the economic spectrum, Argentina and Venezuela are dealing with surging inflation, which has depleted consumer purchasing power.

In North America, premium brands are continuing to drive growth, while both Canada and the US are also leading the way in terms of product innovation, particularly in advanced skin care technology development.