In-Cosmetics made in-roads into Latin America earlier this year, when the beauty event took place Sept. 9 and 10 in São Paulo. According to the organizers, In-Cosmetics welcomed more than 2,400 visitors—90% of which came from host country Brazil. The remaining 10% of attendees cam from all over the world, including Argentina, Colombia, Chile, Peru and the US. In-Cosmetics also featured 192 exhibitors in 158 stands presenting over 1000 ingredients including their recent launches and technologies for formulating innovative products. The event was well-received, as demonstrated by the fact that  80% of space for the 2015 edition was already booked by the close of the event. Next year, In-Cosmetics will be held Sept. 30-Oct. 1 at the Expo Center Norte, in São Paulo.

Organizers selected Brazil to host the first In-Cosmetics event in Latin America due to its stature in the global beauty and personal care area. Brazil is the No. 3 market in the world for these products, trailing only Japan and the US. The gains should keep coming, too. According to Euromonitor International, the Brazilian personal care and beauty category will grow 105% by 2017.

Double-digit gains have become the norm in Brazil. According to the Brazilian Association of the Toiletries, Fragrance and Cosmetics Industry (ABIHPEC), from January to June this year, ex-factory turnover topped $8.17 billion (R$19.5 billion), which represents an increase of 12.6%.

In the Innovation Zone
During In-Cosmetics, Mintel presented the Innovation Zone, an interactive display of the latest ground breaking ingredient launches in the beauty industry, through finished products on the market from Latin America, the US, Europe and Asia.

One of the featured products from Latin America was Pantene BB Cream Rejuvene-7 Hair Treatment Blister from Brazil. It features an advanced formula with pro-vitamins that repair and rejuvenate hair and imparts seven benefits of youthful hair including: hydration, strength against damage, damage repair, silkiness, radiant shine, frizz control and split ends protection. The salt-free and pH-balanced rinse-off product is claimed to provide an extra concentrated dosage, and retails in a 15ml pack.

From Colombia comes Schwarzkopf Konzil Renovación Total Shampoo. This formulation contains liquid keratin and hyaluronic complex (hyaluronic acid and moisturizing agents) that promise to give users hair that looks 10 years younger, according to the company. The shampoo, recommended for dry, fragile or thin hair, is designed to penetrate the hair shaft, reconstruct the architecture of aging locks, and fortify and repair for shinier, more beautiful hair, noted Schwarzkopf.

Supplier Activities
A leading provider of active ingredients sustainably sourced from the Brazilian biodiversity, Beraca consolidated its strategic partnerships with key international manufacturers of natural, high-performance ingredients at In-Cosmetics Brazil. Germany-based companies Henry Lamotte and Dr. Straetmans, France-based Greentech and Italy-based Indena will all be represented by Beraca in Brazil. The 31% growth recorded by Beraca in 2013 is due in large part to the increase in business with its international partners.
“We anticipate further growth for 2014, with the approval of new active ingredients and the increase in sales of products already distributed by Beraca in Brazil,” explained Juliana Frutuoso, account manager of Beraca’s health and personal care division.

According to executives at Dr. Straetmans, the company’s Dermosoft and Dermofeel lines were primarily responsible for Beraca’s growth last year. With multifunctional ingredients, Dermosoft replaces preservatives banned from the market for safer alternatives while Dermofeel offers light texture, high spreadability ingredients even in oily formulations as those used in sunscreens, according to the company.

Brazil’s MCassab Group, through its cosmetics business unit, offers a range of solutions and innovations for the personal care market. After 86 years in the market, MCassab has 60 partners supplying raw materials for the industry and exclusively markets several product lines.

At In-Cosmetics, MCassab presented the products of its latest partnership, the Brazilian Biodiversité, from the state of Paraná. The brand has managed to unite French technology with raw materials from two Brazilian biomes, the Cerrado and the Amazon, resulting in sustainable actives that also help treat the skin. Formulations include powders, shadows and sunscreens all based on two 100% Brazilian ingredients: Brazil nuts/Pará nuts (from Amazon) and the baru (from Cerrado).  The nut’s bark is said to contain a plethora of actives.

In fact, one product is called Brazil Nut Crystals for Make up e Lights of Baru. The line has been very successful in Europe due to its biological properties, according to company executives. The pigments provide effective coverage of imperfections.  They make it possible to repair dehydrated skin, stimulate cell renewal  and collagen synthesis, protect against UVA radiation and promote the balance of the tissue´s physiological functions, according to MCassab.

Brazil is the No. 2 hair market in the world with a 12% share, according to data from ABIHPEC. Within this product category, MCassab Group represents Shin-etsu Silicones, which enables MCassab to supply materials for both hair and skin care products.
One of main attractions at BASF´s booth was Dehyquart Flex, a hair conditioning and treatment ingredient, tailored to the personal care market needs in Latin America. Since it was launched by BASF in 2013, the ingredient has undergone new performance testing which details the benefits of this cationic material. Developed in Brazil, the product responds to the demands from local consumers, providing many benefits such as improved combing on wet and dry hair, increased brightness, volume and frizz control.

Chemyunion, another Brazilian manufacturer, highlighted Hygeaphos A.S., an anti-dandruff agent obtained from natural and renewable sources. It showed the same results as the pyrithione zinc, chemical product traditionally used to control dandruff and oiliness, without causing dryness, which is very common with the regular use of traditional anti-dandruff agents. It is easy to be applied for the formulator and it is possible to produce transparent products, according to the supplier.

Cosmotec, which has provided ingredients to the Brazilian cosmetic market for more than 27 years, presented Neomix, a material that is said to meet three key trends: biopersonalization, multi-use and simplicity.

The first trend involves the creation of specialized products for a particular need or niche market. Multi-use includes products with more than one function and involves the search for robust products to meet specific needs with perfection, setting highly specialized products.

Finally, simplicity leads technology to more basic products, in such way that remain accessible. It proposes the simplification of technology to improve existing products or to win new consumers. Within this concept, one of the product possibilities with Cosmotec´s ingredients application was the Hydra Jelly Facial Moisturizer, inspired by products launched in Asia. It has a silky texture, provides hydration and protects against urban pollution.

Workshops
In addition to the vast array of raw materials at In-Cosmetics Brazil, there was more than 30 hours of innovation seminars that were put together by the exhibitors´ technical teams. The event also included workshops run by the Institute of Technology and Studies of Toiletries, Fragrance and Cosmetics, featuring presentations by professionals renowned in the market.

In one workshop session, Euromonitor researcher Marcela Viana reviewed the premium beauty and personal care sector and noted that it expected to 3-5% over the period 2008 to 2013. But when it comes to product usage and expectations, consumers expect immediate results.

“Brazilians sometimes do not have the patience and the persistence to properly continue using skin treatments,” explained Viana. “As a result, she ends up dropping or quickly changing the product.”

Clearly, Brazil has a long way to go in the premium market.

“While Brazil is the No. 3 player in hygiene and beauty category, in the premium category it is No. 10,” noted Viana. “We have a lot of potential to grow and explore.”

Consumer behavior in Latin America is different from other regions. Skin care is the fastest growing segment in the rest of the world, in Latin America; driven by Brazil, the biggest growth driver is fragrance.

In fact, driven by Brazil, fragrances are the gateway to the premium market. In order to become a growth leader, there must be improvements in price, local manufacturing and distribution.

When these improvements are made, Latin America, led by Brazil, can claim a top spot in the premium skin care market.

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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.