Market Trends of South America Cosmetics Products Industry
Increasing Inclination Toward Functional cosmetics
- The cosmetics industry's transition to functional cosmetics has accelerated due to rising concerns about skin health. Similarly, the younger generation is more interested in using cosmetics products with added nutrients such as vitamin A, which is rich in retinoids. Vitamin A's derivatives help reverse photo-aging, reduce wrinkles' appearance, and treat acne and skin-lightening effects.
- In recent years, Brazilian consumers have significantly shifted in beauty preferences, with an increasing focus on functional and hybrid cosmetic products that combine beauty and skincare benefits. This trend is particularly evident in the color cosmetics segment, where consumers seek products that enhance their appearance and provide additional skincare benefits.
- Hence, this scenario creates a lucrative opportunity for makeup brands to penetrate the facial skincare category by developing hybrid makeup products. For instance, in 2021, Boticario, Brazil's leading cosmetics, makeup, and perfume brand, introduced a range of makeup products containing retinol.
- Furthermore, cosmetic product manufacturers' increasing use of natural functional ingredients is expected to increase the organic and natural sales prospects of cosmetic products. In addition, the rapidly aging population, growing skincare concerns, and rising healthcare spending power across the region are expected to increase the revenues in the functional cosmetics segment over time.
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Argentina is the emerging Market for Cosmetic Products
- In Argentina, the increasing number of working women and rising consciousness regarding physical appearance among millennials are the key factors driving the market's growth. In addition, there is an increasing demand for long-lasting and waterproof makeup, sun protection makeup with SPF, and vitamin-enhanced makeup. This, in turn, offers a lucrative opportunity to the key players in the category to innovate in facial makeup products.
- Moreover, the growing awareness about the harmful effect of chemical compounds such as paraben and aluminum in regular cosmetic products is stimulating the growth of natural and organic facial cosmetic products in the country. Therefore, manufacturers are focused on innovating facial cosmetics with natural ingredients. For instance, Aname Vio is an Argentine company that develops an organic cosmetic line, including a facial day cream formulated with natural ingredients such as honey, Jojoba, rosehip, and blueberry.
- On the other hand, the increasing consumer adoption of online shopping further promotes the sales of facial cosmetic products in the e-commerce platform. Following the trend, other manufacturers are trying to offer unique products on various online sales channels, such as Amazon and Sephora to increase their revenue, thus driving the online sales of facial cosmetics products in the market.
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