BEAUTYSTREAMS, the Global Beauty Industry Reference, is pleased to present three macro movements for the ‘Spotlight On’ Area of the in-cosmetics Latin America 2018 edition, highlighting raw materials for the fragrance, hair care, personal care, and skin care sectors.

Theme 1: CLEAN BEAUTY
Raw materials that put safety first

As the sustainable trend moves into the mainstream, consumers start to question the impact of ‘natural’ products on their health. CLEAN BEAUTY is not only defined by the level of sustainability, but also whether a product is safe for the consumer or not.

Ingredient lists will need to be transparent and each ingredient will need to be justified. If certain ingredients cannot be safely replaced by naturals, most consumers will choose their own safety over a negative environmental impact.

Theme 2: SENSORIALISM
Raw materials with visible, tangible, or fragrant effects

SENSORIALISM brings well-being moments to everyone’s home. While consumers spend more and more time in front of their screens, they are seeking real product experiences reconnecting them with their bodies. Tingling, warming, or cooling effects enhance the active benefits of products, while visible effect pigments used in skin care, personal care, and hair care add visual appeal to products. Scents add another dimension to the product experience for a truly 360° sensorial experience.

Theme 3: HYPERFORMANCE
Raw materials with quick and potent results

With increasingly product-savvy consumers, innovation and quality become more important than ever. HYPERFORMANCE highlights raw materials with powerful efficacy and premium claims. Consumers are looking for high-performance products with almost instant effects like filling, plumping, anti-aging, glow, etc. It’s no longer about marketing promise – today’s time-poor consumers want immediate and effective solutions.

in-cosmetics, together with global beauty industry reference BEAUTYSTREAMS, unveiled the 2020/21 KEY BEAUTY MACRO TRENDS at the in-cosmetics Global 2018 show in Amsterdam (April 17-19). Visitors were able to stop by the Make-up Bar to scan the smart reader and receive an email with our exclusive trend and product information. Connecting consumer movements to beauty implications, look for these trends sets to influence product development in the upcoming years:
#1: REALITY ZAPPING
#2: HYPER-SEGMENTATION
#3: TRANS-CATEGORY
#4: POWERED BY NATURE

BEAUTYSTREAMS is the only trend source dedicated to the beauty industry. Specializing in strategy and innovation, our content inspires marketing, product development, and consumer insight professionals worldwide. With a team of over 200 experts on 6 continents, BEAUTYSTREAMS provides targeted insights for the following sectors:
COLOR COSMETICS / HAIR CARE & COLOR / NAILS / SKIN CARE / PERSONAL CARE / FRAGRANCE / MEN’S GROOMING / STRATEGY & CONSUMER INSIGHT / RETAIL / PACKAGING

For more information: contact@beautystreams.com
Or visit: www.beautystreams.com

Follow us on Instagram @beautystreams_official

AUTHOR: BEAUTYSTREAMS

At in-cosmetics Korea 2017, Nicole Fall, Founder of Asian Consumer Intelligence, presented the “Scented opportunities – the global fragrance market” during the Marketing Trends & Regulations presentations.

Nicole Fall is the founder of Asian Consumer Intelligence, an innovation consultancy specialized in strategic research and trend forecasting focused on partnering with brands and manufacturers to help inspire new services and products across a range of industries including beauty, cosmetics, food, beverages, consumer electronics and retail.

Fragrance is growing in demand across APAC as consumers actively seek new ways of introducing scent into their daily personal care routines.

Nicole Fall is looking at key drivers creating new opportunities for fragrance, as well as uncovering some of the lifestyle influences that are impacting consumer scent preferences. This presentation focuses on the region’s fastest growing fragrance markets to provide insight for brands to leverage new business opportunities.

The meeting organized by ITEHPEC – Institute of Toiletries, Fragrance and Cosmetics Technology and Studies – takes place in tandem with the two days of the exhibition, bringing together CT&F industry researchers and officials.

 São Paulo, September 2016 – During the two days of in-cosmetics Latin America – October 5-6 – the organization offers a wide range of parallel programming content in line with the scope of the exhibition, which brings together manufacturers and distributors of raw materials and ingredients; suppliers of systems and software, as well as researchers and developers of tests for the cosmetics, toiletries, and fragrance (CT&F) sector. Organized by Reed Exhibitions, the event takes place at the Expo Center Norte in São Paulo.

Full program at https://goo.gl/XW6K8Y

The industry’s most important innovation entity, the ITEHPEC – Institute of Toiletries, Fragrance and Cosmetics Technology and Studies – conducts the workshop “Cosmetics 4.0 – the Future of Beauty” during the event, covering scientific and regulatory issues in the CT&F area.

On the first day, the debates begin with Cosmética Mundial’s State of the World, from 9 a.m., to later explore themes such as biodiversity and the effectiveness of natural assets; safety assessments for the use of natural ingredients; news and regulations for sun protection, and technologies for coloring and straightening and anti-aging. Guest speakers are Sérgio Gonçalves, Director of International Marketing and Business for Chemyunion and ITEHPEC Advisor; Paulo Benevides, Technical and Scientific Coordinator of the Centro de Biotecnologia da Amazônia (CBA); Vanessa de Moura Rocha Sá, Senior Scientific Manager of Natura; Tania Cristina de Sá Dias, consultant in Personal Care; Rosemeire Franco, R&D manager of Johnson & Johnson; and Emiro Khury, managing partner of EK Consulting.

On the second day of the event, with the same timetable, the workshop presents the general theme New Frontiers of Cosmetic Science, moderated by Silvia Stanisçuaski Guterres, a researcher at UFRS and ITEHPEC council member. The meeting also presents trends in clinical studies, such as computer modeling and in silico organs on chips technologies for cosmetics evaluation, and the possibility of open innovation to accelerate launches.

Also taking part are Airton Abraham Martin, a researcher at UNIVAP (Vale do Paraíba University); Vidal Wagner Magalhaes, Innovation Manager at Chemyunion; Marcio Lorencini, Products and Regulatory Affairs Evaluation Manager at Grupo Boticário; Elaine Guerra, Director of ELANGE Development, Research and Information and Marcelo Prim; Innovation and Technology Executive Manager at SENAl.

*ITEHPEC and ABIHPEC / SIPATESP members are entitled to discounted enrolment in the workshop. Entrance to in-cosmetics Latin America is free for industry professionals.

 For more information on the ITEHPEC workshop:

http://www.portalinovacaohppc.com/Web/Institucional/EventoDetalhes?id=49

Other program attractions

in-cosmetics Latin America has for the first time the Formulation Lab, a 100% functional laboratory fitted out with equipment that will allow the experts to breathe life into the ingredients, formulating and testing products inside the pavilion. The unique and unprecedented initiative is aimed at technical cosmetics industry Research and Development professionals.

Open to all visitors, the Marketing Trends lectures present market studies and new trends in cosmetic products in Brazil and abroad, through presentations by companies such as Factor-Kline, Euromonitor International, Mintel, and IPCS (Institute of Personal Care Science), among others. The Innovation Seminars will show presentations on the latest products, ingredients and technologies for the beauty and personal care industry. There are 31 talks in total. And at the Sensorial Workshop, visitors will have even more interaction with the participating brands Dow & Dow Corning, Brasquim and Croda taking part: makers can feel, smell and observe the differences between functional ingredients, which will be presented in 45-minute sessions.

The event promoter, Reed Exhibitions, expects to play host to 3,500 professionals at this year’s exhibition. These visitors will get to know over a thousand products of 200 exhibiting brands, representing more than 20 countries.

REGISTER HERE TO VISIT IN-COSMETICS LATIN AMERICA 2016

————————————–

Service:

in-cosmeticsLatin America 2016

Date: October 5-6

Venue: Expo Center Norte – Pavilhão Azul

Address: Rua José Bernardo Pinto, 333 – Vila Guilherme

Timetable: 10:00-19:00 hrs

http://www.in-cosmeticslatinamerica.com/

Reed Exhibitions

Reed Exhibitions is the world’s largest events organizer, with a unique network of offices and international sales promoters. By 2015 over 7 million participants had visited products in its constantly growing portfolio. There are 500 events in 30 countries, including trade and consumer exhibitions, conferences and meetings serving 43 different sectors of industry, from aerospace and aviation to the beauty, cosmetics, sports and leisure industries.

ITEHPEC

ITEHPEC’s mission is to promote and encourage innovation in the CT&F Industry within standards of excellence, aiming to increase businesses’ competitiveness and sustainable growth. The Institute has been active in seeking out business opportunities in innovation for the segment, in anticipation of trends in knowledge generation and resources integration to business needs; creating opportunities for adding value to products in the sector.

Further press information:

2PRÓ Comunicação

Teresa Silva (11) 3030-9463

Carolina Mendes (11) 3030-9436

Myrian Vallone (11) 3030-9404

e-mail: reed@2pro.com.br

www.2pro.com.br

Brazil is the world leader in the volume of fragrance sales per capita, the result of the broad growth the country has experienced in this segment in recent years. The main reason for this trend could be due to the Brazilian habit of using mass-market fragrances, especially in the country’s north and northeast regions, where the most significant market for this type of product in Brazil is to be found.

Several factors have influenced sales in this segment over recent years. One of the main ones is the increased consumption of Brazil’s emerging middle class. In 2008 this market had a turnover the equivalent of 4 billion reais; in 2010 a turnover of 5.63 billion and in 2013 almost 7 billion, with the forecast for 2018 sales of around 8.87 billion reais in this segment. The growth in market value in local currency was 15.7% in 2008; 18.5% in 2010, the greatest growth of recent years, and 2.4% in 2013, with the forecast for 2018 growth of 7.1%.

In dollars Brazil’s retail market turnover in the fragrances sector was 2.238 billion in 2008; in 2010, 3.199 billion and in 2013, 3.240 billion dollars. In 2013 the segment experienced a drop compared to the year before: in 2012 Brazil had a turnover of 3.505 billion dollars.

In percentage, the turnover in Brazil’s fragrances segment represented a growth of 23.3% in 2008; 34.7% in 2010, the greatest growth of recent years, and -7.6 in 2013 compared to 2012. Despite the 2013 downturn, after 2015 the forecast is for sales to once again grow, remaining at positive levels. The forecast for 2018 is a turnover of 3.387 billion, representing a growth of 1.9% over the previous year.

The Brazilian population’s spending per capita in the fragrances market was 11.690 dollars in 2008 and 16.119 in 2013, with the forecast for 2018 16.193 dollars. The segment as proportion of Brazil’s gross domestic product (GDP)  was around 0.13546 in 2008 and 0.14452 in 2013, with the forecast for 2018 around 0.12399.

Brazil’s fragrances sector had a 2012 turnover of the equivalent of 6.83 billion reais, divided into a turnover of 3.80 billion in women’s products and 3.03 billion in men’s products. The country’s 2013 turnover was 6.99 billion reais, divided into a turnover of 3.95 billion in women’s products and 3.04 billion in men’s products.

Summary: Annual growth rate

The mean annual growth rate in Brazil’s fragrances segment was 10.2% 2009–2013.

The forecast is for a 5.0% mean annual growth rate in this sector in Brazil 2014–2018.

Companies market share in Brazil’s fragrances market:

Natura Cosméticos SA

In 2012, 32.5% of the market; in 2013, 30.5%.

Botica Comercial Farmaceutica Ltda

In 2012, 15.0% of the market; in 2013, 18.5%.

Avon Products Inc

In 2012, 9.5% of the market; in 2013, 8.5%.

Grupo Silvio Santos

In 2012, 2.5% of the market; in 2013, 2.6%.

Johnson & Johnson Services Inc

In 2012, 1.9% of the market; in 2013, 1.8%.

Puig SL

In 2012, 1.7% of the market; in 2013, 1.8%.

Suissa Industrial e Comercial

In 2012, 1.0% of the market; in 2013, 1.2%.

Hypermarcas S.A.

In 2012, 0.9% of the market; in 2013, 0.8%.

Dana Classic Fragrances Inc

In 2012, 0.6% of the market; in 2013, 0.5%.

LVMH Moet Hennessy Louis Vuitton Inc SA

In 2012, 0.4% of the market; in 2013, 0.5%.

Others

In 2012, 34.0% of the market; in 2013, 33.3%.

Fragrances

Research data 

Retail market definitions: The research was carried out in a market that included men and women’s fragrances. Body sprays were excluded from the research. Market size is based on all retail sales, including direct sales to the consumer.

Segments definitions:

Men: This segment includes popular and luxury lines.

Women: This segment includes popular products, luxury lines and unisex products.

Included in the research: Men’s and women’s fragrances. Unisex products are included in the women’s segment. Also included are luxury lines, middle-range sectors and mass market. Perfume, eau de parfum, eau de toilette, cologne, after shave lotions and colognes.

Excluded from the research: Body sprays, makeup preparation products and products for babies.

Sources: Pesquisa Mintel / Mintel Research

III Caderno de Tendências 2014-2015 da ABIHPEC / ABIHPEC’s III Book of Trends 2014-2015

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Euromonitor International data state that Brazil’s 2012 turnover in the toiletries, fragrances and cosmetics (HPPC) sector was 41.7 billion dollars, bringing Brazil into third place worldwide, behind the US and Japan. The Brazilian market represents 11% of the world market (with only 3% of the population) and forecasts have Brazil overtaking Japan by 2020 to become the world’s second-greatest HPPC market.

Assessing the HPPC segments one by one shows that Brazil is also a leader in several of these. It’s the largest world market in fragrances and deodorants; the second biggest market in men’s products, children’s products, bath products, depilatory products, sunscreen and hair products (this latter segment is expected to overtake the US by 2017); the third-largest world market in makeup and oral hygiene products and the fourth largest world market in skin products.

Second only to the US, Brazil is also on course to become the world leader in the hair products category. It is already an international point of reference in hair treatment, particularly in the Middle East and Europe, thanks to the appeal of keratin, argan oil and murumuru. Brazil is also a world leader in mass-market cosmetics, benefiting from its vast teen and youth market (Generation Y), which has made these segments very important ones for companies.

Cultural and climatic factors favor the consumption of HPPC products in Brazil. In Brazil men and women invest time and money in personal grooming. The warm and humid climate leads many Brazilians to wash their hair every day and use styling products especially developed for this market. Brazilians bathe two or three times a day.

Without a doubt, Brazil’s middle classes have been one of the biggest drivers of the HPPC market over the last few years. This group, which could previously only afford to purchase basic day-to-day items, has come to consume more personal grooming products. In sum, some factors behind the consecutive two-figure growth of the industry over the last 17 years have been:

• Increased life expectancy;
• The growth of Class C;
• The modernization of factories; and
• Gains in productivity.

The investments show innovation to be a true focal point of the sector. In 2012, HPPC industries invested R$ 13.6 billion in assets, Research & Development and Trademark Strengthening, an 18% higher total than 2011. Of this, R$ 3.3 billion were in assets, R$ 800 million in research and development and R$ 9.5 billion in trademark strengthening.

The Euromonitor Research Institute says 2012 was a disputed year for the market leaders of Brazil’s beauty market. This competition reflects the market share of the sector’s five biggest companies, in line with their ranking.

According to Abihpec (the Brazilian Association of the Toiletries, Fragrances and cosmetics Industry), Brazilians spend on average R$ 150.00 per month on beauty products, which they consider powerful allies in raising self-esteem.

Trends and Opportunities

For the new consumers emerging in economic terms, the focus of the new products is, quite rightly, popularizing luxury and making it available for buyers who are increasingly keen to acquire the latest things. Euromonitor also states that masstige (mass+prestige) cosmetics had better growth than luxury cosmetics up to 2016.

There is also a great opportunity for countries such as Brazil to expand their multipurpose cosmetics market. People increasingly wish to use a product with several benefits, one that’s easy to use and with a reduced application time.

Body care products continue to lead the segment (53% in 2012 and 58% in 2017), while facial care products need leading companies to tweak their category planning to make the prices more competitive and so beat the competition entering the market.

Anti-ageing products aimed at older women are an excellent opportunity to increase this category as they have formulations with higher added value than others. Another public consumer in the skin care category is Generation Y (Millennials, 20-33 years old, according to Mintel) who, again according to Mintel, take great care over their appearance and don’t mind paying more for a better quality and beneficial product that raises their self-esteem even more.

Source: ABIHPEC’s III Book of Trends 2014-2015

Silvia Lourenço

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Datamonitor’s Data Analytics database says that all 10 world Toiletries, Fragrance and Cosmetics (HPPC) markets in full growth in terms of value are developing countries. The expanded middle classes, the increased disposable income, more ‘aspirational’ desires, the growth in sales channels, improved quality and design and advanced technologies are some of the key factors for growth.

Countries such as Chile, Colombia and Mexico are experiencing economic growth above the Latin-American mean, put at a yearly 3.1%. Chile (5.5%), Colombia (4.8%) and Mexico (3.5%) have seen increased economies as a result of their trade with Asia, mainly the export of goods to China.

Brazil is the Latin-American HPPC sector leader. It’s the third largest world market, just behind the US and Japan. It tops the Latin-American ranking with 55.1% of the Latin-American HPPC market. Mexico is second with 13.1%; Colombia fifth with 5.3% and Chile sixth with 3.7% of the market.

Some factors which have made for continued two-digit-plus growth in Brazilian industry over the last 17 years have included increased life expectancy, an expanded Class C, the modernization of factories and increased productivity. For the new consumers who are emerging in economic terms, the new products justly emphasize luxury and making this available to the consumer who is increasingly clamoring for novelty.

Another Brazilian trend is a huge opportunity for multipurpose cosmetics. People are increasingly turning to products with several benefits in one, meaning ease of use and reduced time of application.

Chile’s increased number of women in the workplace has helped drive the county’s HPPC sales as these consumers understand how important grooming is for recognition and an enhanced professional career. A further factor strengthening the market is the strong showing of direct sales companies with higher aggregated value products and consumers’ desire to purchase them, for their quality and benefits, heralding new retail opportunities.

Colombia’s standout trend and opportunity is in the much-growing male market. The sector has immense potential but needs innovations and launches. The challenge for this segment of the population is increasing how often products are used and repurchased. Hence the development of multipurpose products and shaving products being great opportunities. Enlarged sales channels for these buyers is also necessary, facilitating access to shopping via convenience stores, shopping aisles, internet sales, etc.

In Mexico, the expanded middle class is driving the growth of medium-priced products. Men are becoming the target of HPPPC products. Increased urban living and women in the workforce are impacting significantly on consumer habits in terms of beauty products and personal care items.

This increased number of women in the workplace continues to drive the growth of men’s products, as Mexican men are increasingly more concerned with their appearance in view of the stronger competition and the search for jobs and promotion.

Sales Channels 

Comparing 2008 and 2012 in Brazil, franchising and traditional retail had a growth of 3.4 and 2.0 percentage points in turn, while direct sale and wholesale fell.

Another datum to consider is the variation of sales channels (multichannel) as an important factor involved in sector growth. Although representing 3% of world sale, e-commerce in cosmetics is tending to grow gradually.

Sales in Brazil in 2012 were 34.2% traditional retail, 29.6% traditional wholesale, 8.3% franchise and 27.9% direct sales.

Sales in Chile in 2012 were 35.2% traditional retail, 43.3% specialized retail/franchise, 21.2% direct sales and 0.3% beauty salons.

In terms of sales channels in Chile, specialized retail/franchise was stronger in 2012, and direct sales grew 18%, comparing 2008 to 2012.

Colombia’s traditional retail sales of 2012 were 49.8%, specialized retail/franchise 16.1%, direct sales 33.9% and beauty salons 0.2%.

Comparing 2012 with 2008, direct sales channels saw the biggest growth: 4.4 percentage points, while traditional retail, the main channel, fell 3.0 percentage points during this time.

Mexico’s sales channels are well defined and stable, comparing 2008 date with that of 2012 and the sales channels’ market shares are very similar, with no great variations.

Sales in Mexico in 2012 were divided into 57.8% traditional retail, 17.7% specialized retail and 24.5% direct sales.

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While men’s grooming has become the media’s darling with buzz words such as “metrosexuals”, “mansome” and “spornosexuals” used to describe its consumers; in reality, the category has been one of stability, rather than one of rapid growth. Furthermore, according to Euromonitor International, even when including men’s fragrances in men’s grooming, total men’s sales currently account for 11% of total beauty. Men’s grooming’s average growth of 6% since 2008, which was sustained even during the peak of the economic downturn, means it remains the second fastest growing category within total beauty, and one of high interest to beauty players. This, however, raises the question – how far can men’s grooming go? Are the majority of men “Clooning” (buying and using beauty products to age well) as the media claim; or is this category destined to remain niche?

Given that the world’s population is almost evenly split between men and women, and that men’s disposable income is both higher and growing faster, men’s grooming is still comparatively low, at US$35.4 billion value in 2013, which suggests vast, unrealised potential in the category. Beauty companies have been expanding their men’s lines into many different beauty categories, including the traditionally unisex toothpaste. But while men’s grooming has evolved to include product offerings beyond razors to skin care and hair care, not all categories hold the same potential.

Men’s shaving – the return of the beard

Whilst globally men’s shaving is no longer the predominant category of men’s grooming, it remains the most traditional, and the most penetrated among the male population.  Men’s shaving has, however, been going through a transformation period over the past five years. Firstly, post-shaving has been integrated into men’s skin care products and vice versa, thus suffering from sales cannibalisation in some markets. More importantly, men’s razors and blades’ sales have taken a hit from a cut-back in shaving by male consumers.

Razors and blades fall from fame is mainly attributed to three key factors; the increasing expense of shaving every day, the rise of the fashionable stable and even beard and lastly the rise in unemployment, coupled with a relaxation of business dress code. The US, where this trend has been most prominent, has seen men’s razors and blades declining in 2013 and the category is expected to remain static till 2018. In Western Europe, the trend has been most pronounced in France, Italy and the UK with the region expected to decline by US$100 million by 2018.

Despite the trend for unshaved beards nearing its peak, it will be more than five years before growth rates start improving in Western Europe. The relaxation of men’s business dress code, coupled with the cost and inconvenience of shaving will keep growth rates low. However, the increasing sophistication of consumers in emerging regions like Latin America, where disposables have been losing ground to system razors, and the rise of markets like India, will continue to keep the category on a strong global growth pattern.

Men’s toiletries – how vain can men get?

Men’s toiletries, which include bath and shower, hair care, deodorants and skin care, was the fast-growing category for a long time. In 2013, it became the dominant category within men’s grooming, surpassing men’s shaving in total sales. While, there has been much publicity discussing men’s usage of more sophisticated beauty products, including anti-ageing and make-up, in reality, over half of men’s toiletries revenue in 2013 comes from deodorants. This is true across regions, with the exception of Asia Pacific.

Asia Pacific is the only region where deodorants contribute less than half of revenues in men’s toiletries. Skin care, which has over 60% of its sales coming from the region, is the key category in Asia Pacific, followed by hair care. Furthermore, men’s skin care is expected to be the second fastest growing category till 2018 surpassed only by other facial make-up, where BB creams are tracked. This shows Asia’s influence over both the global beauty market as well as men’s toiletries. South Korea, Japan, China and India remain the most important markets for men’s skin care players but smaller markets including Indonesia, Thailand and Vietnam are also rising. Thus, while men in the West are taking more of an interest in their appearance, elaborated skin care and make-up routines remain niche. In fact, in its majority, the male consumer in Western Europe and North America is still in the adoption/frequent usage stage. The opportunity for sophisticated skin care and make-up for men does exist but it remains in the East.

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Chile’s fragrances segment has performed extremely well and seen great growth over the last few years. Of the Latin-American countries researched by Mintel, Chile has seen the best results in this sector, growing 24% in 2010.

In 2007 Chile’s fragrances market had a turnover the equivalent of 62 and a half billion Chilean pesos and in 2009 a turnover of almost 78 billion. 2012 saw an increase to 107 billion Chilean pesos and the forecast for 2017 is 159 billion in sales. Growth in market value in local currency was 7.0% in 2007; 15.0% in 2009 (the greatest growth of recent years);11.0% in 2012 with the projection for 2017 growth of 7.1%.

Chile’s fragrances sector retail market turnover in dollars was 120 million in 2007; 172 million in 2010; 220 million in 2012 and the forecast for 2017 is 266 million. In percentages this represents a growth of 8.6% in 2007; 24.0% in 2010 and 10.3% in 2012 with the forecast for 2017 growth of 5.8%.

Spending per capita of the Chilean population in the fragrances market was 7.213 dollars in 2007; 12.62 in 2012 and the forecast for 2017 is 14.62 dollars. The segment as proportion of Chile’s gross domestic product (GDP) was around 0.069177 in 2007 and 0.082444 in 2012 with the forecast for 2017 around 0.087117.

Chile’s fragrances market had a turnover of 96 billion Chilean pesos in 2011, divided into a turnover of 53 billion on products for women and 43 billion on products for men. Chile’s 2012 turnover was 107 billion Chilean pesos, divided into a turnover of 61 billion on products for women and 46 43 billion on products for men.

Summary: Annual Growth Rate

From 2008-2012 Chile’s mean annual growth rate in the fragrances segment was 12.1%.

Chile is forecast to have a 2017 turnover of 266 million dollars in this segment, representing a mean growth rate of 8.0% 2013-2017.

Companies’ share in Chile’s fragrances segment:

Grupo Puiq

In 2011, 21.5% of the market; in 2012, 23.1%.

Comercial Davis, S.A.

In 2011, 17.2% of the market; in 2012, 16.3%.

Laboratorio Petrizzio S.A.

In 2011, 11.9% of the market; in 2012, 13.7%.

Avon Products Inc.

In 2011, 12.3% of the market; in 2012, 12.9%.

Laboratorio Prarter, S.A.

In 2011, 7.4% of the market; in 2012, 6.8%.

Revlon, Inc.

In 2011, 5.1% of the market; in 2012, 4.4%.

Coty, Inc.

In 2011, 3.8% of the market; in 2012, 3.2%.

Monix S.A.

In 2011, 1.8% of the market; in 2012, 1.9%.

Other

In 2011, 19.0% of the market; in 2012, 17.7%.

Fragrances

Research data.

Retail market definitions: Research was carried out in a market that includes fragrances for men and women. Body sprays were excluded from the research. Market size was based on all retail sales, including direct sale to the consumer.

Segments definitions

Men: This segment includes popular products and luxury lines.

Women: This segment includes popular products, luxury lines and unisex products.

Included in the research: Fragrances for men and women. Unisex products were included in the for-women segment. Also included were luxury lines, middle-line sectors and mass market. Perfume, eau de parfum, eau de toilette, eau de cologne, aftershave lotion and cologne.

Excluded from the research: Body sprays, make-up preparation products and fragrances for children.

Source: Pesquisa Mintel / Mintel Research

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Chile’s buoyant economy has allowed consumer access to higher aggregated value products, fostered innovation and promoted a very competitive market, one in full growth. One factor contributing to increased sales of toiletries, fragrances and cosmetics (HPPC) products in Chile is the larger number of women in the workplace. These consumers understand how important grooming is for recognition and career enhancement, in addition to it being a matter of personal satisfaction.

In addition, people are seeking out anti-aging treatments earlier, meaning a growth in specialized retail from drugstore chains. Another factor positively impacting on the market is companies’ widespread participation in direct sales of higher aggregated value products, and consumer desire for quality and benefits. There is without a doubt a trend toward heightened consumer sophistication. This is connected to several factors, mainly globalization, and opens up new retail opportunities.

A further novelty is QR Codes (Quick Response Codes) that help boost e-sales (E-Commerce). This tool is becoming an important source of information on product characteristics. Industries and retailers use this in catalogs, press media and other materials.

Groupon entered Chile in 2010 and boosted the number of companies offering online discount coupons, making this one of the most successful strategies for attracting consumers and fixing the brand in consumers’ minds. One of the channels benefitting most from this was the beauty salon, with offers on manicures, makeup and hairdressing, and discounts of up to 70%.

This persuaded a great many consumers, who before had no access to these services, to go to beauty salons. Thus more purchases of professional cosmetics brands, hair care brands, hand cream and nail polishes were made.

Chile’s HPPC market grew 53.2% in 2012 over 2008. The worldwide recession led consumers to seek out cheaper products to maintain their consumption, impacting on sales value, but not sales volume. On the other hand, multinationals have launched several products with innovatory formulas, packaging and formats, which has raised growth in Chilean market value.

Trends and Opportunities

Opportunities lie in bath and shower products, makeup, fragrances, sunscreen, men’s products and premium products.

Unilever Chile is an HPPC company retail leader (2012 data). Of the many direct sales companies, Ebel SA (Belcorp) and Natura are two with a high growth index. Thanks to the promotion of the concepts of sustainability and the ever-increasing concern for the environment, there is a greater consumer preference for companies concerned with these issues.

The launch of products designed to eliminate shiny skin has aroused men’s interest and persuaded them to try the products. Some very successful men’s lines are Eucerin (Men Silver Shaver), the Vichy Homme Line (Hydra Mag C Hidratante, with magnesium and vitamin C) and Biotherm Homme (High Recharge Yeux Line – a serum that works to reduce eye wrinkles). Chile is today a market in expansion and with opportunity for growth, and companies should turn their attention to the consumer, focusing on innovations and products with a higher aggregated value.

Source: III Caderno de Tendências 2014-2015 da ABIHPEC / III Book of Trends 2014-2015

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