“Brazil is expected to drive the most growth among the BRIC markets in the future in absolute value terms, adding $13bn (€9bn) between 2010 and 2015, to reach $51bn by the end of 2015,” Lee told Cosmetics Design in an exclusive interview ahead of her presentation.
“The country is expected to show strong growth in beauty and personal care due to the growing spending power of the middle-class. Brazil’s economy should continue to grow strongly as it benefits from global demand for its natural resources as well as investments in preparation for the 2016 Rio de Janeiro Olympics.”
India should prove an interesting market to watch
However, when asked to pinpoint the most interesting of the BRIC markets to follow, Lee points to the India market, highlighting the fact that its beauty category is expected to grow by 46 per cent between 2010 and 2015, albeit from a lower base than that of Brazil.
“The world’s second most populace country currently has very low consumption of beauty and personal care products. However, as the country becomes wealthier and more urbanized, Indian consumers are moving from basics such as bar soaps to wash their hair and hair oils to condition, to specialised products such as shampoos and conditioners,” Lee said.
India might seem some way behind the other BRIC markets, but still Lee believes that growth in all of the markets will continue to be sustained for years to come as there are few signs of maturation, except for slowing growth in certain categories.
Growth is expected to slow in some BRIC categories
“Bath and shower products and oral care are expected to grow at slower rates than more discretionary categories in the BRIC markets, combined with increased urbanization and expansion of modern retailing creating more opportunities for consumer to invest in skin care and splurge on fragrances,” Lee said.
As growth slow in these categories, the big international players are likely to turn their attentions to newer emerging markets, where the potential for higher growth rates is likely in the future.
Euromonitor believes that the frontrunners in these newer emerging markets during the 2010 – 2015 period will be Indonesia, Iran, Peru, Saudi Arabia, Thailand, Turkey and the Ukraine.
Lee will be giving her presentation as part of the conference segment ‘Core Opportunities for Skincare in the BRIC Markets’, alongside another presentation by Dr. Martin Rudolph, head of product development at Beiersdorf, who will be giving a detailed case study.
Put this date in your diary and suscribe to the event
The presentation will be at 9pm – 10pm CEST Europe/Paris (3pm – 4pmEDT New York) on June 15, and will include an opportunity for the audience to virtually participate in the conference by fielding questions through the chat windows that accompany the presentation.
For further details about the industry’s first ever Virtual Trade Show, Skincare Ingredients 2011, and the accompanying conference programme, please click here .