By Silvia Lourenço

Chile is one of the strongest retail market in the beauty segment in the world, playing an important role in Latin America. Between 2011 and 2015, the average annual growth rate for the segment in the country was 8,3%. The segment is expected to grow strongly in the next years, and it is also expected to hit an average 7.7% annual growth rate between 2016 and 2020.

In 2011, the retail market value in the country was 156.6 billion of Chilean pesos. In 2015, it reached 215.6 billion, and the outlook for 2020 is that the fragrances segment will hit 313.7 billion of Chilean pesos in sales. The retail market value growth in local currency was 9.7% in 2011; 6.1% in 2015, and the estimate for 2020 is an 8.1% growth.

The fragrances retail market value in US dollars in Chile was 323.8 million in 2011. In 2015 there was a retraction if compared to the previous year, and the sales hit 329.6 million of US dollars. As from 2016 the retail market value in US dollars is expected to grow steadily and reach 451.6 million of US dollars in 2020. In percentage, the segment growth was 15.7% in 2011, the highest in the last years, a -7,5% downturn in 2015, and a growth estimate of 8.4% in 2020.

The retail market spend per capita of the Chilean population in the fragrances segment was 18.83 US dollars in 2011, 18.36 in 2015, and the 2020 outlook is to reach 23.97 US dollars.

The retail market spend as a proportion of the Chilean GDP (Gross domestic product) was 0.1285 in 2011, 0.1359 in 2015, and it is estimated to be around 0.1487 in 2020.

The Chilean fragrances retail market value total was 203.2 billion of Chilean pesos in 2014, of which 128.3 billion in women’s products, and 74.9 billion of Chilean pesos man’s products. In 2015, the segment’s retail total rose to 215.6 billion of Chilean pesos, of which 136.0 were allocated to women’s products, and 79.6 billion to man’s.

Company retail market share by value in the Chilean fragrances segment.

1. Cosmética EBEL S.A. – 12.9% of market share in 2014, 13.2% in 2015
2. Puig Beauty & Fashion Group S.L.  – 11.4% of market share in 2014, 11.7% in 2015
3. Natura Cosméticos S.A. – 9.9% of market share in 2014, 10.7% in 2015
4.  Comercial Davis, S.A. – 7.2% of market share in 2014, 7.3% in 2015
5.  The L’Oreal Group – 6.7% of market share in 2014, 7.1% in 2015
6.  Cosmeticos AVON S.A. – 6.6% of market share in 2014, 6.3% in 2015
7. Laboratorios Durandin S.A.I. – 5.2% of market share in 2014, 5.1% in 2015
8. Giorgio Armani SpA – 3.9% of market share in 2014, 4.0% in 2015
9. The Procter & Gamble Company – 2.9% of market share in 2014, 2.6% in 2015
10. Laboratorios Prater S.A. – 2.4% of market share both in 2014 and 2015
11. Others – 30.8% of market share in 2014, 29.6% in 2015

Fragrances – about the research process.

 Retail market definition: This market covers men’s and women’s fragrances. It excludes body sprays. Market size is based on all retail sales including direct to consumer.

Segment definitions

• Men’s: This segment includes mass and prestige lines.
• Women’s: This segment includes mass and prestige lines and unisex products.

Inclusions Men’s and women’s fragrances. Unisex are included in the women’s segment. Prestige, mid and mass market sectors are included. Perfume, eau de parfum, eau de toilette, eau de cologne, aftershave, colognes.

Exclusions: Body sprays, shaving preparations and children’s fragrances.

Article produced in August 2017. Source: Mintel. “Fragrances – Latin America – Mintel Market Sizes”.