Latin America body care market spells big opportunities
In a recent study conducted ahead of the in-cosmetics Brasil event, which is being held this week in Sao Paulo, the Euromonitor team looked at growth rates in the body care category for Brazil – population 200 million, Chile – population 17 million, Colombia – population 48 million and Mexico with a population of 115 million – four of the biggest economies in the region.
The study grouped together all skin care products targeting all aspects of body care, including exfoliators, moisturizers and anti-cellulite products, as well as products targeting the care of hands, feet and nails.
Brazil leads the pack
Over the past five years up to 2012 the study found that mean annual growth for the category was 10.5% in Brazil to reach a retail market value of €851m, 7.9% with a market value of €114m in Chile, 10.2% with a retail value of €149m in Colombia and 6.1% with a retail value of €447m in Mexico, reflecting a still growing cultural emphasis on body care products within the region.
Indeed, Euromonitor analysts believe that the growth will be sustained in the next five years up to 2017, with Brazil expected to see market growth of 12.4% with a market value of €1.17bn, Chile 6.9% with a market value of €135m, Colombia 9.2% with a market value of €206m, and Mexico 6.2% with a market value of €616m.
Brazil continues to lead the pack, although there have been some signs of its economy slowing down in recent quarters, and the economy was officially pronounced to be in a recession at the end of August after a third quarter of shrinking growth, which could lead to a blip in the growth forecasts for the category.
Per capita spend ballooning from a low base
Euromonitor predicts that per capita spend in the five years to 2017 should almost double in all four of the markets it assessed data for, although the increase is from a relatively low base.
The biggest increase will be seen in Colombia, where the average consumer currently spends €1.60 per capita on body care products, a figure that is expected to hit €3.10 by 2017.
The massive Brazil market is also expected to see big gains in per capita spend for the category, with the current figure estimated to be €2.27, a figure that is forecast to rise to €4.27 by 2017.