In two months an “exclusive” very first MakeUp in SaoPaulo!
Only two months and the 1st edition of MakeUp in SaoPaulo will open its doors to visitors in the meeting rooms of the Renaissance Hotel in Sao Paulo, on 3 and 4 December 2014. With, during the two days of conference the presence of the biggest leaders in the global make-up industry from formulation to full service providers, like the Italian group Intercos, the French companies Fiabila, Strand Cosmetics, Sleever, SIMP and Aesthete, the German firms Weckerle and Faber Castell, the American groups Oxygen, Topline and Polychromatic, not to mention the packaging sector with the presence of one of the world leaders in the manufacturing and filling of mascaras, the German company Geka, and two Italian companies also leaders in their field, Baralan and Lumson. To note also the presence of the American leader in samples, with its brazilian branch Arcade Lamtam.
The paradox of this make-up environment in South America: On the one hand a huge sales potential in terms of end users (200 million Brazilians, the 5th most populated country in the world, a booming make-up industry in Colombia, Chile, Peru, Guatemala, etc …), and on the other, a still narrow industrial sector, which can be confined in the end, to a few subcontractors, either local or as part of subsidiaries belonging to a few European manufacturers and to a dozen leading brands on the market with some very big “manufacturers” like companies in Brazil (O’Boticario, Natura,…), Peru (Belcorp and Yanbal,…), or Colombia with Vogue taken over by L’Oréal…
Pierre Miasnik, CEO of the French world leading nail polish company, which is about to open its first factory in Sao Paulo, perfectly sums up the situation: “The market is indeed huge in Brazil, but the problem is that because its difficult to set foot in it, there is a chronic shortage of suppliers who precisely offer a range of diversified products. In short, you need to start an activity locally to create the market!” R & D and marketing managers of major Brazilian brands and more generally South American brands are excited and look forward to the start of such a professional event in the make-up sector. And there is every reason to believe that, in the beginning, demand should far exceed offer. This is great news for those who will be attending the first MakeUp in SaoPaulo!
Overview of the Latin American make-up market
Brazil: 36 million new consumers
It should be remembered that Brazil currently ranks 3rd in the world, in the field of cosmetics and personal care products, with a turnover of USD 17.6 billion and with an average annual growth rate exceeding 10% over the past 17 years. This growth is expected to continue in the coming years, according to all industry experts, with 36 million new consumers who should be moving up towards the middle and upper classes by 2020.
In a regional market estimated to nearly USD 80Md (sales in value – source: GCI), Peru, Colombia, Venezuela, but also Chile significantly contribute to the economic growth of the Latin American cosmetics market.
Chile: 8% per year
Sales of cosmetics products in Chile reached over USD 2.8 billion in 2012, i.e., more than 4.5% of the global market. The market is growing at an annual rate of 8%. Per capita spending on cosmetics represented in 2013 160 USD, which places Chile in second regional position behind Brazil (215 USD). The hair products segment represents 21.5% of the total, perfumes 17%, skincare and make-up, respectively 15.5% and 9.5%. Imported products account for three quarters of the market. France is Chile’s leading supplier with a quarter of the market. The L’Oréal Group is the undisputed leader in the mass market in front of Unilever and Avon.
Venezuela and Colombia are up
Venezuela is enjoying the strongest consumption in cosmetics per capita, with no less than 9 products per consumer per week (sources: Kantar Media, TGI).
The face care market for example, in Colombia weighs 207.5 m in 2012, and enjoys an average growth of 8.5% per year. In Mexico, the market value for face care products is of 643.390 m (source: Mintel).
In a region where distribution channels are developing strongly, and where cosmetics are mostly sold through doorstep sales, the market potential remains huge, considering that Latin American women (71%) use at least 5 products in their weekly beauty routine, among which, blush, eye make-up, face powders, lipsticks or lipgloss, nail polishes, face creams, facial cleansers, hair straightening creams, perfumes or hand creams (source: Kantar Media, TGI).
Peru: make-up on the rise
The market for cosmetics and personal care products in Peru exceeds USD 1.26 billion. Make-up products have strongly increased in recent years, especially eye make-up.
The main manufacturers are Belcorp SA (L’Ebel) and UNIQUE SA, followed by Oriflame S.A. and Avon S.A that distribute their products through mail order. Belcorp with its cosmetic, dermo-cosmetic and make-up products,… under the brand names Ebel, Esika, Cyzone and Glance, is the market leader. The company is believed to have a 34% market share. It exports to Latin America, the United States and Mexico. Unique and the Yanbal Corporation offer skincare products, make-up, perfumes, hygiene products, children’s products as well as high quality costume jewellery and original designs. It has a 15% market share. It also exports, particularly in the United States.