What’s driving the color cosmetics market?

Brazil is in the Big 5 color cosmetic market, only trailing the US, Japan, China and UK. According to Euromonitor International, global color cosmetics sales grew 32.6% from 2011 to 2016 to nearly $61 billion. The gains were even more pronounced in Latin America, where sales surged 48.5% during the period to reach $ 5.85 billion. Sales in Brazil, the No. 1 country in the region, posted gains of 39.1%, reaching $2.44 billion last year. Brazil represents 41.5% of the color cosmetics sales in Latin America, well ahead of Mexico, Argentina, Colombia and Chile. According to Euromonitor, during the next five years, color sales will grow 26.8% in Brazil, 20.9% in Latin America and 18.7% for the world.

Brazil’s gains are impressive, considering the country has been in recession for the past couple of years. Yet, even in this challenging scenario, a recent survey conducted by Nielsen pointed that the makeup category gained more than two million consumers in the past year. Millennials represent more than half (61%) of this increase. These highly-connected women are more likely than the general population to make impulsive, online purchases. These women, often perceived as vain, are shaping market trends and future generations, which bodes well for the industry’s future.

According to Nielsen, another factor impacting growth is more women entering the labor market, which helps fuel consumption. Furthermore, promotions boost product appeal as these new consumers look to balance wants with limited budgets.

YouTube, Instagram, Facebook, Twitter and other social media platforms have propelled color cosmetics sales, as consumers seek guidance on what to purchase and how to apply it. These visual elements help brands build consumer loyalty, drive purchasing decision and create an emotional bond—but there is room for improvement.
According to Mintel, 37% of Brazilian women said “photoshopping” and/or airbrushing n advertising campaigns make it difficult to know what a product would really look like when applied. In addition, 25% of women don’t believe looks in advertising campaigns are created using the cosmetics they promote. Still, videos and images play an important role in convincing women to make an initial purchase; as 28% of Brazilian women hesitate to buy products that they have not tried.

Best Sellers 
Avon Products is the leading player in the Latin American color cosmetics market, followed by L´Oréal Group, Natura, Risqué and Mary Kay Cosmetics. Avon is the leader in Brazil, too, followed by Natura, Risqué, L´Oréal Groupe and Boticário, according to Euromonitor International.

What are the best-selling categories? Lipcolor leads the way in Latin America followed by eye makeup, facial makeup and nail products. The order changes in Brazil where lipcolor is still No. 1, but is closely followed by nail, which is considered a fashion item. Facial makeup is third and eye makeup, fourth.

What’s New?
The economic slowdown in Brazil didn’t deter Italian makeup brand Kiko Milano to enter the country earlier this year. Kiko, which is owned by Percassi Group, relies on the same strategy in every market: offer a variety of products at low prices. According to company executives, Brazil has always been a target market for Kiko, given its strong demand for makeup. However, tough economic times required more investment prior to the first Kiko store opening. With its initial foray complete, Percassi expects to open four more stores by the end of 2017. An even bigger investment is planned for 2018; company executives say Kiko will expand in a “controlled, but aggressive, manner.” The initial five million euro investment will continue until the brand meets its objectives.

Natura, the top Brazilian company in the Latin American makeup category, has a strong presence in Argentina, Chile, Mexico, Peru and Colombia. In recent months, Natura launched several new products via its Una, Aquarela and Faces makeup brands.

Natura Una, a premium brand, added more colors to its Matific liquid lipsticks line. Matific combines a matte effect (the favorite finish of the moment) with the comfort of liquid lipstick without drying lips. The long-lasting, high-coverage, hydrating colors last for up to 24 hours. The brand also added eight shades to its Effect Powder Base Mousse SPF 15. The new colors are said to suit all skin tones.

This month, Natura Faces, a favorite with young consumers, will add several new matte and cream lipstick colors.
Natura Aquarela is following up the launch of its eye mascara with a three limited edition colors, brown, green and blue; all promise intense volume and definition with the first application.

Risqué, the leading nail polish brand, presents its new collection “Risqué Wonder Woman” with six colors inspired by the superhero whose film was released last month. The colors represent the main characteristics of the warrior that include from the blue and red of her iconic costume to the gold and lead color present in the truth lasso and bracelets. Shades are sold separately, but there is also a three-color gift pack intended to encourage women “to reveal their powers.”

L’Oréal launched Maybelline Lash Sensational in Brazil last year, where it quickly become favorite with women. Cílios Sensacionais’ brush has 10 lengths which promise to reach even the smallest eyelashes, defining them end to end, and coating them with an intense black color which ensures a sophisticated look.

The challenging economic scenario creates consumers who seek low prices in an inflationary atmosphere. Yet, color cosmetics marketers have good opportunities in the Brazil, as women seek the same cosmetics and colors that they find abroad. At the same time, online tools convince women to experiment with a wide array of products and looks that are sure to drive sales no matter what the economy is doing.

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Daniela Ferreira
Correspondent
daniester@circulodabeleza.com.br
Mobile: 55-11-993880867

Daniela Ferreira is a marketing and communication professional in both consumer and B2B cosmetic markets. With a degree in social communication and postgraduate work in business administration, her expertise includes managing and launching products, communication planning, market studies and analysis, and identifying new business opportunities. She also has beauty blog (www.circulodabeleza.com.br), and is a makeup artist and image consultant.