During the past decade, Brazil has climbed to lofty height in the global color cosmetics industry. In 2008, Brazil was the No. 6 makeup market in the world; by the end of 2014, it had reached the No. 3 spot by growing more than 50% between 2009 and 2014. Last year, color cosmetic sales in Brazil exceeded $3.4 billion and accounted for more than 40% of color cosmetic sales in Latin America, according to Euromonitor International. Venezuela was a distant second at 17.2%, followed by Mexico at 15.3%.

What are the best selling categories in Brazil? Nail products led the way, accounting for nearly 28% of value sales. Eye makeup and lip color were tied for second with 24.3% and facial makeup held 23.4%, according to Euromonitor International. The data demonstates that the category has evolved, once the focus was on lipstick; today, woman uses various items, proving that makeup is no longer superfluous; it has become part of a daily routine.

Brazilians are very concerned about their nails, particularly their fingernails; as a result, they are willing to try products that provide great benefits, especially treatments and strengtheners. These products attract consumers’ attention, which drives value higher.
Several other factors have provided a lift to the color cosmetics category; including increased income, more sophisticated local manufacturers, and the arrival of Sephora and other international chains which brought several international brands into Brazil for the first time. Prior to 2012, when Sephora opened its doors, retailers in Brazil offered far too many, me-too products in the same, tired cosmetics space.

Makeup has an emotional effect on women, according to recent study by Mintel. Nearly 70% of makeup users agree that the use of makeup makes them more confident, with the highest rate of agreement in the group aged 25-34 (78%). The study also found that the makeup use-confidence link was high among women who are married or in a stable relationship (66%), and single/living with parents (69%). It seems that the factors relating to confidence and appearance provided by the use of makeup are important regardless of the marital status of consumers.

What’s more, 61% of survey respondents consider that the use of makeup at work contributes to a more professional look, suggesting the search for more practical, easy-to-use products. Consumers are also looking for convenient, travel-friendly packaging, along with time- and money-saving formulas, according to results of the Mintel study. That may explain, in part, the popularity of BB creams, which provide color and skin care benefits. In Brazil, according to researchers, 30% of women using BB creams on a daily basis, compared to 21% who opt for traditional foundations.

This search for practical products reflect the “Minimize Me” trend, according to Mintel. There is a growing desire among consumers to simplify their lives and reduce the amount of assets they own. Therefore, smaller makeup items, often viewed as more practical and portable, will grow in popularity.

Who Tops the List?
Competition in color cosmetics is fierce between domestic and international manufacturers. The Brazilian market, for example, is divided among five companies—Avon (brands: Avon Color, Avon Color Trend), L´Oréal (Maybelline), O Boticário (Make B), Natura (Natura Aquarela, Natura Una), and Hypermarcas Company (nail enamel brand Risqué).

Avon is the leader in lips, eyes and face. According to the company, Avon accounts for one out of every two lipsticks sold in Brazil. Moreover, every 1.5 seconds an Avon mask is sold in Brazil. In addition, the brand has two lines of nail enamel, Avon Color Trend and Avon Nailwear Pro +. Despite its woes in other regions, Brazil is Avon´s largest operation in the world and a major influencer when planning major launches and the mix presented in the product portfolio. While the direct sales channel remains strong in Brazil, market leaders make sure their products are available online and in retail. As a result, all major players in Brazil are available in several channels simultaneously, such as direct sales, internet retailing, beauty specialist retailers or in parapharmacies/drugstores. The O Boticário brand, for instance, is present in beauty specialist stores as well as in internet retailing and direct selling. Meanwhile, L’Oréal works in a number of shops where these items can be found, and at the same time, is expanding the number of brand kiosks.

The Mintel study also revealed that seven out of 10 makeup users agree that it is worth spending more on premium products for best results. For top-of-the-line products, consumers even make purchases in several monthly installments, without interest.

According to Euromonitor, from 2008 to 2013, “premium” beauty product sales rose nearly 103% in Brazil—well above the world average of 15.8%. Looking ahead, from 2013 to 2018, premium beauty sales are expected to grow 36.3%, also well above the global average (14.9%). During that time, analysts expect a slight deceleration in volume. Clearly, the beauty and personal care market continues to see significant growth rates despite inflation—the explanation is that in times of crisis, people buy more cosmetics, due to the low unit cost, but focused on raising self-esteem and inspired by the “I deserve a treat” type of thinking that led Leonard Lauder to create his Lipstick Index.

What’s in Fashion
Following the international catwalk trends, O Boticário showed Make B. Universe, a limited edition color collection for Fall/Winter 2015. The concept is based on a seemingly incongruous mix of space travel and the origin of man, portrayed on the international catwalks through metallic and bulky fabrics, with silver serving as a key color. The highlight of the collection is the Quartets Baked Shadows, which has shades from matte to satin that provide multiple combinations. The new product is said to be developed using “baked technology,” which results in finely textured, long-lasting formula that boasts more pigment for better coverage.

Last year, Avon brought to Brazil its premium line Avon Luxe, which costs at least 35% more than the most expensive items of Avon Color portfolio and puts it in the same price positioning of rival Natura.

Risqué by Hypermarcas, the leader in nail enamels, presented its Homens que Amamos (Men who we love) collection for fall/winter 2015. There are six shades, ranging from orange and pink to dark blue and gray, based on national and international fashion trends. The names of products honor male attitudes to conquer the beloved women.

Jequiti Cosméticos, a direct sales company, is owned by Grupo Silvio Santos, one of Brazil’s most well-known conglomerates. Jequiti invests in products associated with a well-known personality. Its best sellers are in lip and eye color. The Elas line, for instance, is comprised of 14 variants of lipstick whose fun names are related to the many facet of modern woman´s life: dare, passion, meeting, adrenalin, friendship and style.

Contém1g is a well-known Brazilian cosmetic franchise, with the concept of “Boutique Factory.” Its new DD Cream SPF 35 provides multiple benefits in a single product, including UV protection, hydration, prevention against premature aging, radiance and uniform skin tone all within a silky texture and a natural matte finish.

The Peruvian multinational Belcorp, which is the No. 3 player in the Latin American direct sales market, will launch Ésika, to its collection, Color Maxtime; the propose is to save time in the retouch. The Lipstick Color Maxtime Duo Tattoo Intense, for instance, promises  Intense color and moisturizing for up to 24 hours and is easy to use with just two steps.

A Trend to Watch
Mintel analysts predict that seasonality will be a key trend to impact the global cosmetics consumers (see Newsfront this month). Currently, there are several generic seasonal launches for skin and hair care, but in the future, instead of simply using the change of seasons as a reason to introduce new color collections, cosmetic companies are going to launch innovative products that offer protection against cosmetic and emotional effects caused by specific climatic conditions. Now there’s an incentive for formulators to weather cloudy economic forecasts and focus on the development of innovative products!

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Daniela Ferreira
Correspondent
[email protected]
Mobile: 55-11-993880867

Daniela Ferreira is a marketing and communication professional in both consumer and B2B cosmetic markets. With a degree in social communication and postgraduate work in business administration, her expertise includes managing and launching products, communication planning, market studies and analysis, and identifying new business opportunities. She also has beauty blog (www.circulodabeleza.com.br), and is a makeup artist and image consultant.