Market Size of South America E-Commerce Skin Care Products Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 6.13 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South America E-Commerce Skin Care Products Market Analysis
The South American e-commerce skin care products market was valued at USD 2.3 billion for the current year and is projected to register a CAGR of 6.13% over the next five years.
- The growing level of customer awareness over their appearance is one of the major reasons driving the market's expansion in the region. Millennials are increasingly embracing personal care products like skincare or body care products as part of their regular grooming routines. For instance, Associaço Brasileira da Industria de Hygiene Pessoal, Perfumaria, and Cosméticos (ABIHPEC) estimate that in 2022, Brazil imported USD 1.52 billion worth of skin care products.
- Also, the market's growth in terms of value sales has been assisted by the straightforward accessibility of these skincare products through various sales channels, such as internet stores and e-commerce operators. For instance, as per the Brazilian Electronic Commerce Association, the revenue from e-commerce in Brazil reached approximately BRL 170 billion in 2022, an increase of 12% from BRL150 billion the year before (2021).
- Additionally, digital substitutes are getting more immersive each year as it supports customizable subscription-based business models that combine the ease of internet shopping coupled with in-person shopping to offer consumers regular deliveries at their doorsteps. Also, the beauty sector has seen a digital change over the past year, partly due to a rise in customer desire for businesses to offer personalized digital experiences.
- To give customers personalized product recommendations and greater purchasing confidence, many firms have integrated virtual try-on and AI-powered website skin diagnosis tools. Augmented reality (AR) has been at the forefront of this digital shift and is quickly becoming a crucial part of a successful omnichannel strategy in the beauty industry, supported by strong data and outstanding results. The shift by businesses and consumers to digital has resulted in the emergence of social forums, communication platforms, and a "beauty community" online in addition to purchasing channels.
- For instance, in September 2021, Coty Inc. expanded beauty tech offerings globally with omnichannel perfect corp. The company announced a multi-channel agreement with leading beauty tech solutions provider Perfect Corp which offers AR (Augmented reality) and AI (Artificial Intelligence) solutions to beauty and personal care companies, among others.
- Furthermore, the vegan (no animal components at all), vegetarian (no byproducts of animal slaughter), and cruelty-free (no animal testing) beauty markets have been increasingly popular in recent years, and they are also beginning to gain traction in Latin America. For instance, Natura & Co, a Brazilian multinational company of cosmetics, hygiene, and beauty products, claims to be Leaping Bunny Certified, which is an internationally recognized cruelty-free program that supports the cruelty-free trade of products.
- Thus, due to the growing demand for such products, businesses are entering the market for organic skin care products. The brand recognition and visibility of cosmetics and personal care goods among consumers have increased as a result of significant investment in advertising and marketing initiatives, including promotions on social networking sites, among others, thus driving the market during the forecast period.
South America E-Commerce Skin Care Products Industry Segmentation
The e-commerce skincare products include the sales of a range of products that support skin integrity, improve appearance, and treat skin disorders that are used on the skin to prevent acne, premature aging, and black patches via a digital channel.
The South America E-Commerce Skin Care Products Market is segmented into product type, type, platform type, and country. By product type, the market is segmented into body care, facial care, lip, and hand care. By type, the market is segmented into conventional and natural/organic. By platform type, the market is segmented into third-party retailers and the company's own website. By country, the market is segmented into Brazil, Argentina, and Rest of South America.
The market sizing has been done in value terms in USD for all the abovementioned segments.
| Product Type | |
| Body Care | |
| Facial Care | |
| Lip and Hand Care |
| Type | |
| Conventional | |
| Natural/Organic |
| Platform Type | |
| Third Party Retailer | |
| Company's Own Website |
| Country | |
| Brazil | |
| Argentina | |
| Rest of South America |
South America E-Commerce Skin Care Products Market Size Summary
The South American e-commerce skin care products market is experiencing significant growth, driven by increasing consumer awareness and demand for personal care products, particularly among millennials. The market's expansion is facilitated by the easy accessibility of skincare products through various online sales channels, including e-commerce platforms. The digital transformation in the beauty sector has led to the integration of advanced technologies such as augmented reality and artificial intelligence, enhancing the online shopping experience with personalized product recommendations and virtual try-on features. This shift towards digital has also fostered the growth of online beauty communities and social forums, further boosting the market. Additionally, the rising popularity of vegan, vegetarian, and cruelty-free products is contributing to the market's growth, as consumers increasingly seek natural and organic alternatives to chemical-laden skincare products.
The demand for natural and organic skincare products is further fueled by consumer concerns over the side effects of synthetic ingredients, leading to a preference for products labeled as "organic," "vegan," and "cruelty-free." The availability of these products on e-commerce platforms, coupled with the growing number of internet and social media users, has significantly increased consumer awareness and purchasing behavior. The market is highly competitive, with major players like The Estée Lauder Companies Inc., Natura & Co, L'Oréal S.A., Grupo Boticário, and Unilever PLC adopting strategies such as partnerships, technological investments, and social media marketing to enhance their market presence. The ongoing trend towards sustainable and environmentally friendly beauty products is expected to continue driving market growth, as consumers increasingly prioritize products with natural and clean-label ingredients.
South America E-Commerce Skin Care Products Market Size - Table of Contents
-
1. MARKET DYNAMICS
-
1.1 Market Drivers
-
1.1.1 Rising Demand for Natural/Organic Formulation Skincare Products Via E-Commerce
-
1.1.2 Augmented Expenditure on Marketing and Promotional Activities
-
-
1.2 Market Restraints
-
1.2.1 Touch and Feel Factor Restraining the Market Growth
-
-
1.3 Porter's Five Forces Analysis
-
1.3.1 Threat of New Entrants
-
1.3.2 Bargaining Power of Buyers/Consumers
-
1.3.3 Bargaining Power of Suppliers
-
1.3.4 Threat of Substitute Products
-
1.3.5 Intensity of Competitive Rivalry
-
-
-
2. MARKET SEGMENTATION
-
2.1 Product Type
-
2.1.1 Body Care
-
2.1.2 Facial Care
-
2.1.3 Lip and Hand Care
-
-
2.2 Type
-
2.2.1 Conventional
-
2.2.2 Natural/Organic
-
-
2.3 Platform Type
-
2.3.1 Third Party Retailer
-
2.3.2 Company's Own Website
-
-
2.4 Country
-
2.4.1 Brazil
-
2.4.2 Argentina
-
2.4.3 Rest of South America
-
-
South America E-Commerce Skin Care Products Market Size FAQs
What is the current South America E-Commerce Skin Care Products Market size?
The South America E-Commerce Skin Care Products Market is projected to register a CAGR of 6.13% during the forecast period (2024-2029)
Who are the key players in South America E-Commerce Skin Care Products Market?
The Estée Lauder Companies Inc., Grupo Boticario, Natura & Co, L'Oréal S.A. and Unilever PLC are the major companies operating in the South America E-Commerce Skin Care Products Market.
