Brazil Country Focus – Part 3: The Facial Care Market

in-cosmetics Brasil has been granted access to research undertaken by Mintel (a world leading research company) into the cosmetics market in several Latin American countries. The study maps out each sector of the industry and shows growth over recent years and future projections and perspectives.

We analyzed the research and over the coming weeks will share this information via several articles on our website.

PART 3: BRAZIL – THE FACIAL CARE MARKET

Brazil’s toiletries, fragrance and cosmetics (HPPC) market has grown greatly over the last few years and is second globally only to the US and Japan, two countries where sales have increased less. According to specialists, Brazil will overtake Japan by 2020 and become the world’s second-largest market.

Some of the factors helping in the consecutive growth seen over the last 17 years are:

– Increased life expectancy;
– Growth of Class C;
– Modernization of factories;
– Gains in productivity.

The investments show that innovation is really one of the focal points of the sector: in 2012 Brazil’s HPPC sector spent 13.6 billion reals in assets, Research & Development and strongly on brands, a total that was18% greater than that of 2011.

Brazil’s facial care products retail market grew from 2007’s 1,2180 billion reals to 2012’s 1,8023 billion, with 2017’s total expected to rise to 2,1845 billion reals.< br>
In local currency the growth in value of the market segment rose from 2008’s 21.2% to 2012’s 11.2%, with continued expansion predicted for the next few years and 2017’s total expected to rise by 3.1%.

Brazil’s facial care cosmetics retail market segment turned over the equivalent of 455.97 million euros in 2007, growing to 720.92 million in 2012, with the segment’s forecast for 2017 a rise to 661.21 million euros.

Still in euros, Brazil experienced a 20.3% growth in the facial care cosmetics retail market segment in 2008, 22.3% in 2010 and 3.1% in 2012, with the forecast for 2017 1.2% growth.

Brazilian spending per capita in the facial care products market rose from 2.4067 euros in 2007 to 3.6183 euros in 2012, with this set to rise to 3.1835 euros in 2017.

The facial care products retail market turned over 1,218.0 billion reals in 2007, with this rising to 1,802.3 billion in 2012, divided as follows:

Anti-aging products:
In 2007 the turnover was 871.6 million reals, in 2012 1,060.2 billion.

Skin Cleansing and Toning Products:
In 2007 the turnover was 184.5 million reals, in 2012 406.5 million.

Moisturizers:
In 2007 the turnover was 126.7 million reals, in 2012 256.2 million.

Specialized products:
In 2007 the turnover was 22.5 million reals, in 2012 68.1 million.

Masks:
In 2007 the turnover was 12.7 million reals, in 2012 11.3 million.

SUMMARY: ANNUAL GROWTH RATE

Between 2008 and 2012 Brazil’s annual mean growth rate was 5.1% in the facial cosmetics segment. In 2017 Brazil is forecast to hit a 661.21 million euro growth in this sector, a mean annual growth rate of 3.7% 2013-2017.

Companies market share in Brazil’s facial care products segment

Avon Products Inc
In 2010 had 27.5% of the market, in 2011 25.1% and in 2012 21.2%.

Natura Cosméticos S.A
In 2010 had 13.9% of the market, in 2011 14.0% and in 2012 14.7%.

The L’Oréal Group
In 2010 had 7.6% of the market, in 2011 8.5% and in 2012 10.7%.

Beiersdorf AG
In 2010 had 4.5% of the market, in 2011 4.7% and in 2012 5.7%.

Johnson & Johnson Inc
In 2010 had 3.4% of the market, in 2011 3.8% and in 2012 4.2%.

Botica Comercial Farmaceutica Ltda
In 2010 had 2.6% of the market, in 2011 3.5% and in 2012 4.1%.

Mary Kay Inc
In 2010 had 1.9% of the market, in 2011 2.0% and in 2012 2.7%.

Cria Sim Produtos de Higiene Ltda
In 2010 had 0.8% of the market, in 2011 0.9% and in 2012 1.1%.

Galderma SA
In 2010 had 0.6% of the market, in 2011 0.7% and in 2012 0.8%.

L’Occitane Internacional SA
In 2010 had 0.4% of the market, in 2011 0.4% and in 2012 0.4%.

Others
In 2010 had 36.8% of the market, in 2011 36.4% and in 2012 34.4%.

Facial care products Market and retail research data:

The research was carried out in a market that includes anti-aging products, skin whitening products, moisturizers, cleansing and toning products, masks and specialized feminine facial skin care products. It excludes medicated products, such as acne treatment products. Market value is based on sales across all retail channels, including direct sales to the customer. It includes the popular market and prestige lines, and excludes the professional sector, such as beauty salons.

Definitions of the Anti-aging retail segment
Serums, lotions and creams with anti-aging properties.

Skin cleansing and toning products
This segment includes wet wipes, liquid cleansers, sprays, makeup remover and exfoliates.

Moisturizers
This segment largely includes creams and lotions whose primary function is moisturizing and hydrating for nourishing the skin.

Skin whitening products
This segment includes creams, lotions and foaming products specially made to lighten the skin.

Specialized
This segment includes products for lips, eyes, nose and neck, and specific treatment products..

Included in the research
Sales through popular channels, such as hypermarkets and drug-store chains, and select sales via prestige locales, such as department stores and fragrance stores.

Excluded from the research
Products aimed specifically at men; depilatory and lightening products for facial hair; medicated products (such as blackhead treatments, or products for skin problems, and sprays). Baby care products and sun screens, even if they include moisturizers, are also excluded.

Sources:
Mintel
Abihpec – Book of Trends 2014/2015

At in-cosmetics Brasil you can buy the latest formulations and ingredients being launched for personal care manufacturers and distributors, as well as learn more about trends and challenges facing the industry. Click here to find out more about the event and REGISTER ONLINE NOW to attend the exhibition free of charge.

To access further research into cosmetics and personal care markets worldwide please visit the Mintel website.

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