Ahead of his presentation at next month’s Incosmetics Latin America event, we spoke with Elton Morimitsu, senior analyst at Euromonitor International, about what hair care trends and subcategories are driving growth. I checked. Regional individual markets.
Elton’s presentation will take place on the first day of in-cosmetics Latin America on Wednesday, September 18th.th10:30 AM, Title: “Hair Care in Latin America – Trends and Opportunities”.na
Where are the most dynamic Latin American markets for hair care today?na
In 2018, Latin American hair care category sales reached $12 billion, growing 8%. Brazil led the rankings as the region’s best performing country during the period, with sales reaching her $6 billion and achieving 4% growth. Brazilian consumers are taking a more rational approach when purchasing hair care products, but this performance reflects a recovery in value sales after his three years of negative results.
Mexico ranks second within the Latin America bloc, with sales reaching $1.8 billion, growing 4%. Professional hair care recorded the fastest value growth in the domestic category in 2018 as well as his year. One of the drivers of this growth is the quality positioning of professional products with formulations believed to be more effective than commercial brands.
In Chile, the hair care category grew 1% in present value in 2018, reaching $654 million in sales. Commoditization and brand loyalty are major challenges for companies in this highly price-sensitive category. Most brands go to great lengths when it comes to ingredients and clearly claim their benefits on their packaging. were more likely to choose shampoos and hair products at
What types of products do consumers want most?na
Natural products continue to become more relevant. Brazilian consumers continue to demand less irritating hair care formulas. Sulfate-free, paraben-free, silicone-free, and petrolatum-free are some of the features local consumers look for when purchasing hair care products.
In Mexico, brands are increasingly using natural sensory ingredients in their hair care formulas to make their products smell and look more appealing, while at the same time improving their performance. It has translated into the use of essential oils such as lavender and peppermint oil, especially conditioners.
In Chile, local and international brands focus on prescription-free. “Unsalted” products have emerged as having mass appeal in Chile. However, consumers are still not fully aware of the benefits of using products with or without salt.
Among Peruvian consumers, there is a preference for natural ingredients such as argan oil, which are considered harmless to both the hair and the end user. Other popular natural ingredients include coconut milk, cocoa butter, and rose. Marie and others.
Products containing natural and organic ingredients are expected to become more relevant and increase sales during the forecast period in Ecuador. Today, the offering is limited to artisanal products and small local players, which are still not well distributed in major retail outlets.
Salon Professional Hair Care continues to grow. There are approximately 35,000 hairdressers and beauty salons in Colombia, most of which are small private businesses located in residential areas. Colombian women pay a lot of attention to the appearance and general beauty of their hair, and the number of establishments is growing rapidly, with salon professionals her hair care being the fastest growing in hair care during the review period. Contributing to being a category that has.
Salon professional hair care registered the fastest present value growth among hair care in 2018 in Mexico. Growth drivers include the quality positioning of salon professional hair care products with formulations recognized to be more effective than commercial brands.
Sales benefited from consumer demand for more value-added products in the Brazilian market. Sales through various distribution channels have helped the subcategories to deliver stronger results. In particular, Internet retailing can help increase awareness of such products. The wide availability of larger sizes for such items also helps convince consumers who value cost-benefit ratios.
In Uruguay, the number of beauty salons in the country drives the value sale of salon hair care products, despite the small value sale category.
In Ecuador, the trend of ‘nesting’ among consumers impacted professional hair care in salons in 2015-2016. They also used to do certain hair care treatments at home that they used to pay for at a hair salon. Even though a significant portion of the population learned to dye their hair at home, many consumers returned to hair salons more frequently during 2017-2018, as they were more willing to spend more. Sales of professional hair care products at salons have recovered.
How is natural hair care evolving in this region?na
The trend towards sulfate-free, paraben-free, silicone-free and petroleum jelly-free products continues to be favored by consumers who care for their natural hair without perms or relaxants. Products free of such ingredients help consumers keep their hair healthier.
Is men’s hair care growing? If so, which region?na
Men’s hair care is on the decline. Latin America’s market size in 2014 was about $12.5 billion, and in 2018 he reached $11 billion. Some commercial brands have actually reduced the number of her SKUs dedicated to men’s hair care. Niche brands focus on more categories, although higher prices keep many consumers from buying them.
Have you noticed a surge in scalp care? If not, do you think there is potential in this area?na
More and more brands are starting to focus on scalp care. Consumers are becoming more conscious of scalp health and interested in understanding which products can help them. Dandruff continues to be the largest area associated with scalp care. Several commercial and luxury brands are developing dedicated anti-dandruff products. The interest in scalp care is also reflected in some professional hair salons that have started offering dedicated services.
Hair care manufacturers are also exploring the use of ingredients that are primarily used in skin care. LHA, salicylic acid, and prebiotics are some of the ingredients currently used in hair care formulations.
How do you see the Latin American hair care market developing in the next five to ten years?na
Hair care is expected to continue its growth trajectory. He expects sales over the next five years to grow at his CAGR of 3.5%. Latin American consumers are particularly interested in hair care. Interest in the local market also explains why large companies such as L’Oréal and Pierre Fabre have R&D areas in Brazil and focus on this segment. Innovation is expected to continue to grow as local consumers demand specific formulations to meet their needs.