Premiumisation of Beauty and Personal Care in Latin America
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This document discusses the trend of premiumization in the beauty and personal care industry in Latin America. It provides the following key points: 1. The beauty and personal care industry is growing faster in Latin America than globally, though Brazil is underperforming other Latin American countries. 2. Consumers are driving premiumization through a desire to trade up from basic goods and a willingness to pay more for premium formulations. 3. Key drivers fueling premiumization include the expanding middle class in Latin America, an aging population seeking to enhance their lives, and time-starved lifestyles leading consumers to pay for simplified products and services.
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Premiumisation of Beauty and Personal Care in Latin America
- 1. Premiumisation of Beautyand Personal Care in Latin America in-Cosmetics Latin America 2018 Elton Morimitsu, Senior Analyst
- 2. © Euromonitor International 2 EuromonitorInternational network and coverage ABOUT EUROMONITOR INTERNATIONAL
- 3. © Euromonitor International 3 OVERVIEW 01. IndustrySnapshot 02. What is driving the trend? 03. The evolving Latin American consumer 04. Understanding Premiumization in Latin America 05. Future Developments
- 4.
- 5. © Euromonitor International 5 Globalincrease with Latin America performing above average INDUSTRY SNAPSHOT - 5 10 15 20 00 100 200 300 400 500 Beauty and Personal Care Colour Cosmetics Fragrances Hair Care Skin Care Growth% USDBillion Beauty and personal care: Global and Latin America Retail Value Sales in 2017 Global Retail Value Sales in 2017 Latin America 2016-2017 Growth % Global 2016-2017 Growth % Latin America Note: Data in USD, current prices
- 6. © Euromonitor International 6 Brazilunderperforming other Latin American countries INDUSTRY SNAPSHOT Note: Data in USD, current prices 0 5 10 15 20 25 0 10 20 30 40 Brazil Mexico Argentina Chile Colombia Growth% USDBillion Beauty and personal care in Latin America Retail Value Sales 2017 Growth% 2016-2017 49% of LatAm sales
- 7. What is drivingthe trend? 02.
- 8. © Euromonitor International 8 Premiumisationis one of our eight focus megatrends WHAT IS DRIVING THE TREND?
- 9. © Euromonitor International 9 Consumersare driving a new appreciation for thrift WHAT IS DRIVING THE TREND? Source: Euromonitor International’s Lifestyle Survey 2017 Note: Respodents who agree or strongly agree with the statements 79 65 57 52 47 39 I like to try new products and services I like to be distinct from others I only buy from companies and brands that I trust completely I prefer branded goods to non- branded alternatives I prefer to spend my money on experiences, rather than things It is important to me that other people think I am doing well %ofrespondents Latin America: Status and Consumerism
- 10. © Euromonitor International 10 Premiumisationreaches more consumers through a cohesive strategy WHAT IS DRIVING THE TREND? Differentiation Customer relationshipsInnovation
- 11. © Euromonitor International 11 Growthin most regions comes from premium beauty products WHAT IS DRIVING THE TREND? 0 1 2 3 4 5 6 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 Asia Pacific North America Western Europe Latin America Middle East and Africa Eastern Europe Australasia Growth% SalesinUSDmn Beauty and Personal Care: Premium vs Mass Mass Premium Premium % CAGR 2017-2022 Mass % CAGR 2017-2022 Note: Data in USD, fixed exchange rate, constant 2017 prices
- 12. © Euromonitor International 12 50%of Latin Americans are willing to pay more for premium beauty WHAT IS DRIVING THE TREND? Source: Euromonitor International’s Beauty Survey 2017 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Colour Cosmetics Hair Care Products Skin Care Products % of respondents Latin America: Premium formulation vs lower price Strongly prefer lower price Somewhat prefer lower price Neutral Somewhat prefer premium ingredients or formulation Strongly prefer premium ingredients or formulation
- 13. © Euromonitor International 13 Keydrivers are shaping premiumisation WHAT IS DRIVING THE TREND?
- 14. Consumers are looking totrade up from basic goods 14 © Euromonitor International 0 50 100 150 200 250 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Millionhouseholds Number of households in Latin America Other Households Middle Class Households By 2030, there will be an added 19 million middle class households in Latin America Middle class households will represent 26% of all households in Latin America Note: Latin America includes: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominic Republic, Equador, El Salvador, Guatemala, Honduras, Mexico, Panama, Paraguay, Peru, Uruguay, Venezuela Note 2: The middle class is defined as the number of households with between 75.0% and 125% of median income.
- 15. Ageing consumers spending toenhance lives 15 © Euromonitor International By 2030, there will be an added 25 million seniors in Latin America Population 65+ will represent 12% of total population in Latin America 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Population by age segmentation in Latin America Population 65+ Population under 65
- 16. Consumers increasingly willing topay for help Consumers have time-starved lifestyles Willingness to pay for products and services that promise simplicity 16 © Euromonitor International 0 10 20 30 40 50 60 70 80 90 I am willing to spend money to save time I find I am looking for ways to simplify my life I like to try new products and services %ofrespondents Latin America: Status and Consumerism Source: Euromonitor International’s Lifestyle Survey 2017 Note: Respondents who agree or strongly agree with the statement
- 17. To download thefull version, access: http://bit.ly/2RrmOsw [email protected]
Editor's Notes
- #6 GLOBAL: Total sales in 2017 USD 465 billion LATAM: USD 65 billion – total BPC sales in 2017 Juntar com gráfico anterior e só manter 2017
- #7 GLOBAL: Total sales in 2017 USD 465 billion LATAM: USD 65 billion – total BPC sales in 2017 Juntar com gráfico anterior e só manter 2017
- #10 With more products available at more price points than ever before, consumers can spend more on the things that matter to them, while cutting back —often significantly — on those that do not. When consumers spend more — on high-end travel experiences, for instance — they are “funding” that expenditure by economising elsewhere, such as by flying low-cost air carriers. The global financial crisis has had a permanent impact, leaving many consumers worse off and driving a new appreciation for thrift. The global financial crisis has had a permanent impact, leaving many consumers worse off and driving a new appreciation for thrift.
- #11 No slide anterior vimos que produtos premium consguem attender a uma parecela dos consumidores que buscam justamente se diferenciar da multidão. Cada vez mais consumidores buscan produtos e marcas que sejam diferenciadas, inovadoras e que estabelecçam um relacionamento mais próximo a eles. Premiumisação consegue agregar todos esses tres fatores, impulsionando o interesse por parte das empresa em explorar essa categria.
- #12 Na verdade, em mercados mais saturados, vemos que a única saída de crescimento é via a categoria premium
- #13 Trocar para Latam e deixar somente 2017
- #14 Tirar technology e enviormental
- #17 Trocar para Latam e deixar somente 2017