The female Brazilian consumer is getting increasingly adept in the use of makeup. Increase purchasing power and the greater number of women in the workplace have meant these beauty items have become more accessible in recent years. Women are also better informed and more demanding over high quality products, expecting these products to cause no harm to the skin, to have an SPF factor and be dry and not oily to the touch. Products must contain these benefits as consumers expect this from brands. Innovation in this sector means going above and beyond these areas and adding still more to the category.
Nail polish is an indispensable beauty aid for the Brazilian woman. In today’s world, painting one’s nails is a real need felt across almost all levels of the population – raising self-esteem and helping women and teenagers to feel more powerful and secure. Nail polish has a great ability to freshen up one’s look at a very low cost, making it part of everyday grooming, on a par with makeup, clothing and hair. Brazilian women also paint their toe nails as they use more open-toed footwear, something not so much the norm in colder countries.
Brazil’s nail polish and makeup segment had a 2007 turnover of approximately 2 billion reais and a 2012 turnover of 3.69 billion, with the forecast for 2017 in excess of 6 and a half billion reais in sales. Growth in retail market value in local currency was 16.7% in 2007 and 13.3% in 2012, with a forecast of 8.2% for 2017.
In dollars, Brazil’s retail market turnover was a little over 1 billion in 2007, growing to 1,753.6 billion in 2010 and 1,893.8 billion in 2012, with the forecast for 2017 a turnover of 2,600.8 billion dollars. In percentage, the makeup and nail polish market grew 30.5% in 2007, 35.2% in 2010 (the greatest growth of recent years) but had a slight drop in 2012 of -3.0%, growing again over the following years. The forecast for 2017 is market growth of 5.6%.
Spending per capita of the Brazilian population in the makeup and nail polishes market was 5.30 dollars in 2007 and 9.50 in 2012, with the forecast for 2017 12.52. The segment as proportion of Brazil’s gross domestic product (GDP) was around 0.073586 in 2007 and 0.084278 in 2012, with a forecast of around 0.10073 in 2017.
In general Brazil’s makeup and nail polishes market had a turnover of 1,960 billion reais in 2007, divided into a turnover of 622.9 million reais in products for the lips, 415.4 million in products for the eyes, 293.6 million in products for the face and 628.7 million reais in products for the nails.
The 2012 market turnover was 3.692 billion reais, divided into a turnover of 1.037.0 billion reais in products for the lips, 957.3 million in products for the eyes, 869.6 million in products for the face and 829.0 million reais in products for the nails.
Summary: Annual Growth Rate
Over the last 5 years Brazil’s mean annual growth rate in the makeup and nail polishes segment was15.6%.
Over the next 5 years the forecast is for a mean annual growth rate of 11.8%.
Companies’ market share in Brazil’s makeup and nail polishes sector:
Avon Products Inc
In 2010 the company had 31.2% of the market; in 2011, 30.1% and in 2012, 28.0%.
Natura Cosméticos Ltda
In 2010 the company had 12.3% of the market; in 2011,12.6% and in 2012, 13.0%.
Botica Comercial Farmaceutica Ltda
In 2010 the company had 7.7% of the market; in 2011, 8.3% and in 2012, 12.0%.
Hypermarcas SA
In 2010 the company had 8.5% of the market; in 2011, 7.9% and in 2012, 10.0%.
L’Oréal Group
In 2010 the company had 8.9% of the market; in 2011, 8.8% and in 2012, 8.9%.
Contém 1g SA
In 2010 the company had 2.3% of the market, in 2011, still 2.3% and in 2012, 2.3%.
Marcelo Beauty SA
In 2010 the company had 1.9% of the market, in 2011, 2.0% and in 2012, 2.1%.
Mundial S.A.
In 2010 the company had 2.1% of the market; in 2011, 2.2% and in 2012, 1.9%.
Estée Lauder Cosmetics Inc
In 2010 the company had 0.7% of the market; in 2011, still 0.7% and in 2012 1.0%.
Laboratories Payot SA
In 2010 the company had 0.9% of the market; in 2011, still 0.9% and in 2012 still 0.9%.
Mary Kay Inc
In 2010 the company had 0.8% of the market; in 2011, still 0.8% and in 2012 0.9%.
Others
In 2010 the company had 22.7% of the market; in 2011, 23.4%, and in 2012 19.0%.
Trends for the next few years: Eye and lip makeup are the trends set to grow more in this sector in Brazil with the other subcategories, such as facial makeup and nail polishes also showing good indications and signs of growth.
Makeup and nail polishes. Research data.
Retail market definitions: The research was carried out in a market that includes women’s eye makeup, facial makeup, lip makeup and nail polishes. Excluded were nail polish removers, medicated products including lip balm and falsie-type cosmetics such as false eyelashes and nails. Market value was based on sales across all channels, including direct sale to the consumer and selected outlets.
Segments definitions:
Eyes: This segment includes products for eyebrows, false eyelashes/mascaras, highlighter/pencil and eye shadows.
Face: This segment includes blushers, bronzers, correctors, foundation, face powder and primers.
Lips: This segment includes lipstick/lip gloss and lip pencil.
Nails: This segment includes polishes and base coats.
Excluded from the research: Nail polish remover, medicated products including lip balm and cosmetic falsies.
Sources: Mintel Research
III Caderno de Tendências 2014-2015 da ABIHPEC / ABIHPEC’s III Book of Trends 2014-2015