Market Trends of South America E-Commerce Skin Care Products Industry
Rising Demand for Natural/Organic Formulation Skin Care Products Via E-Commerce
- Consumers are becoming more concerned due to the side effects of chemicals in skincare goods that have a negative impact on their health, as harmful metals and chemicals are absorbed through the skin, build up in the body, and cause problems, including skin rashes, allergies, and dullness. Thus, customers are increasingly choosing natural goods, which is driving up demand for organic skincare products mostly via e-commerce, as these retailers tend to help the consumers select the specific products pertaining to their concerns/needs by providing multiple category options in a single website.
- Additionally, consumers have embraced natural skincare and cosmetics that are chemical-free and open about their ingredients. Due to this, customers now prefer organic skincare products over synthetic skincare products. With claims like "organic," "vegan," "natural," "chemical-free," and "cruelty-free," manufacturers in the market have been revamping and expanding their product offerings by introducing a wide range of organic skincare products made with plant-based, clean-label ingredients. Natural and environmentally friendly ingredients are preferred by cosmetic makers when creating goods.
- The need for environmentally friendly beauty products is being driven by "green cosmetics." Sustainable components are being used in products by manufacturers who are interested in the topic of sustainable beauty. For instance, in November 2021, Mustela, a French brand, launched its new multifunctional organic balm in Brazil. As per the company, The multi-purpose Balm comes with 3 Avocado Extracts which nourish, repair, and protects dry areas, including the face, lips, hands, feet, elbows, etc. the company claims the product to be certified organic, and 99.7% of ingredients of natural origin.
- Additionally, due to the vast availability of these items on the e-commerce platform, which provides customers with a large range of products and options to pick from, online sales of natural and organic cosmetics products are expanding across the region.
- For instance, as per International Trade Organization, Brazil witnessed a 16% year-over-year increase in e-commerce sales in 2021 and further predicts to grow more than 55.3% by 2025, reaching a value of more than USD 8 trillion. Consequently, the increasing demand for natural and organic cosmetic products is encouraging manufacturers to introduce plant-extracted ingredients and clean-label ingredients mostly via e-commerce, among other distribution channels.
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Brazil Holds the Major Share in Skin Care Products Market
- The widespread use of the internet has significantly boosted consumer awareness of skin care products. The demand for skin care products through online channels is being supported by the increasing number of internet and social media users who are active across the country. All beauty and personal care brands are utilizing this opportunity and thus launching their products exclusively via their website or third-party online platforms.
- For instance, in March 2021, Estee Lauder partnered with Sephora Brazil to launch its products in stores and via its online store. The company launched products, including Revitalizing Supreme+, Double Wear, Advanced Night Repair, Pure Color Lipstick, and Bronze Goddess, through the partnership.
- Also, the rise in the number of women working and their desire to purchase skincare products to make their appearance better are both factors contributing to the growth of e-commerce skincare products in Brazil. Additionally, online purchasing offers convenience and a wide range of deals, all of which contribute to the expansion of the online skincare business.
- For instance, according to World Bank, 43.6% of women in Brazil in 2022 are in the labor force, up from 42.6% in 2020. The demand for diverse beauty and personal care products is rising as a result of factors including consumer education and increased awareness about goods and services through digital media and other sources. The demand for these products is thus increased as a result.
- Moreover, increasing e-commerce websites that specifically offer vegan and natural products in the country is also creating more awareness about the benefits of natural products, thus attracting consumers to them. For instance, in November 2022, Costa Brazil launched a new body wash that claims to be made entirely of sustainably sourced ingredients from the heart of the Amazon rainforest. The company claimed that this is a nutrient-rich, handy body wash infused with skin-softening squalane and Amazon-sourced miracle oils.
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