Brazil – A New Home For The Beauty Industry

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The Brazilian cosmetics market, worth $ 19.77 billion as of 2015, is projected to grow to $ 28.46 billion by 2020.

Have you ever noticed a crowd of Brazilians on the beach, or in the football stands, or strolling along city streets? One thing stands out - they have style. Brazilians like to look and be beautiful. They are willing to invest in it. Even in the reduced neighborhoods, there seems to be a beauty parlor on every corner. Brazil is home to extremely beauty-savvy women and has become a trend-setting market for the global industry. Brazil represents 7.1 percent of the worldwide consumption in the toiletry and fragrance industry.

Brazil is already the third-largest beauty and personal-care market in the world, after Japan and the U.S.
The Brazilian cosmetics market, worth $ 19.77 billion as of 2015, is projected to grow to $ 28.46 billion by 2020.

In the past, brands had sole control over what defines beauty. However, perceptions of beauty based on age, gender, skin, hair, and body type are changing as today’s consumers take control of how beauty is defined. The ever-evolving perception of beauty will see the removal of labels that are based on simple characteristics and will transform the way consumers look at their skin, hair, and body types. Consumers are passionate about the value a brand and product can bring to them, as they are care about the quality of the product as well. The responsibility is now on brands to impress consumers with a human-like personality that’s relatable, personable, and sincere.

Mass Brands-

Customers are increasingly looking for value for money products which are natural and beneficial for the skin, provide a range of combined benefits of high priced premium products like anti-ageing, whitening, and moisturizing at a lower than premium cost. These products class has been dubbed as masstige or mass prestige. Mid income customers come down from premium to masstige, and from masstige to mass market depending on the purchasing power and the multi-benefits offered in the products. Alongside there has been a significant rise in the premium cosmetics category in Brazil, with famous brands such as L’Oréal, Natura, Avon, Belcorp, Proctor & Gamble, Unilever, and Kimberly-Clark, among others.

With evolving consumer demands and climatic changes around the world, the beauty and personal care industry’s must adapt to natural and sustainable ingredients. A move to become more local in terms of ingredient sources will create opportunities for consumers to protect and preserve resources within their surrounding environment. In the coming year, the possibilities for creating safe, allergen-free, pure, and efficacious ingredients through science could replace the harvesting of natural ingredients. Local sourcing and production of ingredients will become essential in the years ahead, strengthening the idea of local pride - not just with brands and manufacturers, but with consumers too.

Concept of Natural Brands-

The concept of natural beauty ingredients is expanding in an ever-changing world. These brands will give Mother Nature a helping hand by including local approaches and developments in the biotechnology sector.

Brazilian consumers consider the environmental impact of cosmetics when purchasing such products, the highest for any country. When they were asked about the most sustainable firms, Natura Brasil was top of their list. Natura Brasil specializes in natural-based cosmetics, with many ingredients ethically sourced from the Amazon. It has undertaken many sustainability initiatives and is the only large cosmetics company to become carbon-neutral. Besides Natura, Avon has also invested heavily to promote their brands and seek to expand the brand experience by beginning to open up concept stores.

Companies considering the Brazilian health-and-beauty market need to consider their sales-channel strategy carefully. Although direct sales are booming, competition is fierce, and getting it right requires mastering specific skills. An alternative would be to invest in up-and-coming retail channels, such as pharmacies and specialty stores.

An inclination to look good, availability of new markets, increased spends by international companies looking to invest in the market, teens growing older younger and a large body of ageing population wanting to look younger by using cosmetics are some of the drivers of this market. Also economic slowdown, a highly competitive market in both direct selling as well as store based selling, tighter purse strings, people wanting to opt for DIY beauty treatments at home instead of spending on salons, and some other factors make the challenges in this market.

Neither option is easy. But given Brazil’s love of beauty and increasing prosperity, it is worth figuring it out.

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