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During September 9th and 10th, the first edition of In Cosmetics in Brazil was held in São Paulo. In Cosmetics is an international fair dedicated exclusively to the sector of raw material and ingredients for beauty and personal care products.
During my presentation about what we can expect from the premium market of beauty and personal care, I pointed out some factors that show the existing growth potential for the market in Brazil. The increase in credit to consumers, primarily through increased issuance of credit cards, has driven the premium market, since now many consumers can access and pay in installments to purchase premium beauty and personal care products, which were previously inaccessible. Another factor that contributes to the expansion of consumption of premium beauty products and personal care is linked to the fact that many new brands have recently entered the country, offering a wider range of products to consumers. Brands like Urban Decay, Benefit, Bare Minerals, among others, are now available to any consumer in Brazil, either through internet retailing or brick and mortar stores.
Throughout the fair as during presentations that occurred at In Cosmetics, one of the main topics on the agenda was the importance of technological innovation in order to provide enhancements and bring innovations in the Beauty and Personal care industry. From the use of biotechnology and nanotechnology to develop or test the safety and efficacy of various ingredients and raw materials, to the expanded use of natural ingredients in order to value them against synthetic ones was another point raised during the fair. Almost as a market consensus, technological innovation is seen as the main tool to generate organic growth through product innovation. Nevertheless the technological innovation has been only appreciated if it is capable of addressing the company’s main worries of driving global competitiveness and developing safe products to consumers, an increasing concern in the industry.
When analyzed globally, the skin care category remains the largest one in premium, representing more than 35% of total sales to final consumers in premium beauty and personal care. The Asian market has the largest share within the category of premium skin care, and this performance is closely related to cultural factors as the skin, especially facial care, is a symbol of beauty and status for many Asian countries. Particularly, China has shown strong growth in premium skin care, registering an average annual growth of 18.3% over the past five years, helping boost the growth of premium skin care market globally. Brazil, in turn, has enough space to increase its share in the global premium skin care scenario, since this category’s revenue is still quite lower than premium fragrances, which is the main category in both mass and premium divisions among the beauty and personal care industry in Brazil. The Brazilian consumer has not properly understood the importance of maintaining a regime and constancy in facial care, which ends up impacting the sales of skin care treatments in the country.