Latin America’s cosmetics and personal care products sector has boomed as consumers take advantage of their rising disposable incomes. The region (including Mexico) accounted for 17% of global sales in the beauty and personal care industry, according to market analyst Euromonitor International in 2013. Sales reached almost US$80bn with 4% growth year on year. Over the last five years, the area has been the fastest growing regional market for beauty and personal care products around the globe, with an impressive 8.8% compound annual growth rate (CAGR). “A stable economy that resulted in increasing disposable incomes coupled with other factors like a growing middle class, a greater access to credit and global trends influencing consumers are behind this growth,” says Fatima Linares, Research Manager at Euromonitor. “A good performance [in the sector] is also expected for the coming five years, though more moderate than in the previous ones. An additional 7% CAGR is expected, which represents an added value of $33bn.”
According to El Consejo de Asociaciones de la Industria de Cosméticos Latinoamericana, or the Council of Associations of the Latin American Cosmetics Industry (CASIC), the cosmetics sector has grown 314% in the last decade, a rate of growth second only to Eastern Europe. Brazil is the powerhouse of the region in both consumption and production of beauty and personal care products, with a market size of $42.95bn – more than half the total market of Latin America, according to Euromonitor.
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