Market Trends of LA Cosmetic Packaging Industry
This section covers the major market trends shaping the Latin America Cosmetic Packaging Market according to our research experts:
Increase spend on Personal Care products to drive the market
- Among all personal care product categories, skincare, haircare, fragrances, and makeup are expected to experience the adoption during the forecast period. For instance, the Solar exposure awareness undertaken by CANIPEC in the previous years is contributing to the growth of dual functionality cosmetics that cater to the customers' makeup and skincare requirements.
- According to Invest in Bogota, the investment promotion agency of Bogota, the cosmetics market size is expected to reach USD 3.96 billion by 2022. The growth in the country has been primarily due to the gradual rise in per capita incomes in recent years, which has resulted in increased spending on cosmetics and personnel care products.
- The hair care products demand is increasing due to the growing adoption of grooming products and the popularity of beards among men. The haircare sector represents 20% of the personal care market in Mexico. The sector is also expected to experience healthy growth during the forecast period.
- The growth potential that this market offers, coupled with the customers' price sensitivity, is expected to localize the production of cosmetics and their packaging in the future. For instance, in August 2019, Avon opened a state-of-the-art research facility in Mexico to support its existing plant in Celaya and develop products targeting the local market. Tarsus purchased the remaining 40% of its joint venture with Expo Guadalajara to localize its presence in Mexico further.
Understand The Key Trends Shaping This Market
Download PDF
Brazil to Register Significant Growth
- Brazil exports perfumery, cosmetic, and bath products to Argentina, Colombia, and Chile and imports cosmetics from France, Argentina, and the United States. The country remains dependent on imports for finished products. This has led the Brazilian government to introduce import taxes to localize the production. Companies like Albea are focusing on localizing their cosmetic packaging activities as much as possible.
- Further, the Brazilian cosmetics industry is gaining from an untapped demographic dividend, which is progressively using more cosmetic products. According to KOTRA, a state-funded trade and investment promotion organization operated by the government of South Korea, there has been a continuous increase in the number of male consumers buying cosmetic products in Brazil. SEBRAE or Brazilian Support Service for Micro and Small Enterprises, stated that the men's cosmetics market has tripled in Brazil in the past five years. By 2021, it will become the largest men's cosmetics market in the world. This is expected to facilitate further growth of packaging modules designed exclusively for use by men.
- In terms of products, the perfume segment has been continually growing, as body sprays for fragrances and deodorants remain highly popular. This leads to the growth of product categories, like dispensing systems and spray caps, required for these products. There is a trend supporting premiumization in this market. Despite being price-sensitive, Brazilians are willing to spend on cosmetics. According to the Brazil Institute of Geography & Statistics, healthcare and personal care products grew by 0.58% in September 2019, as consumers deemed them essential.
- Moreover, the market in the region is also witnessing investment activities. For instance, in Apr 2020, the French group of fragrances and aromas, Robertet, invested BRL 48 million in constructing a unit in São Paulo. With its operation, the company is now looking to triple its production and storage capacity. The unit allowed the company to increase its productivity. The company also added more advanced processes to meet environmental issues, such as waste treatment and rainwater reuse.
Get Analysis on Important Geographic Markets
Download PDF
