Category Intelligence on Hair Care Analysis LATAM covers the following
Latin America is estimated to account for almost a quarter of the global hair care market and this reflects the volume of demand generated in South America alone, for hair care products
Brazil dominates the hair care market in terms of value in Latin America and is nearly triple the Mexican market and more than quadruple of the Argentinian hair care market
The hair care market is a very dynamic industry in Latin America and this region witnesses over 2500 product launches every year. It is very important that brand owners have innovation in the pipeline to develop new hair care products
Hair Products in Demand: In countries like Mexico and Argentina, consumers demand for basic treatments (shampoos & conditioners) and styling products. In Brazil, consumers want products focusing on hair treatment and pos-shampoo. Also, women in Brazil are wearing their hair in its natural state. So there is a boom for products that suit the high degrees of miscegenation among the Brazilian population.
Growth of Premium Market: The premium hair care market has grown twice as fast as the mass market products. Despite the unfavorable macroeconomic conditions, the premium category grew by over 15 percent , reflecting consumers' preference for products with higher-quality ingredients and recognized brand names.
Innovation: There has been a stable stream of new product launches targeted at increasingly popular niche markets addressing specific consumer demands.
Target Market: The rising middle class with disposable incomes, growing young generation and increasing number of women in the workforce (currently occupying about 50 percent of the workforce) drive growth in hair care. Consumers average annual spend on CFT products amounts to approximately 4 percent of their personal income.
Sustainability: Plant based ‘natural' and organic ingredients are dominating hair care product development. Plant-based ingredients help the apparent “naturalness” of products, thereby leading to an array of benefits such as moisturizing and nourishment.
Macro-economic Trends : A slow economy and high inflation rates had led many consumers to shorten routines and cut back spending on anything beyond the basic. However, the market is slowly picking up.
The Brazilian hair care market has displayed the strongest incremental growth and is driven primarily by the shampoos/conditioner market
The penetration rates of leave-in conditioners and shampoos in Brazil are the highest when compared to mature markets such as Europe and the US
Unilever Brasil leads hair care, with stronger brands such as Seda, Dove and TRESemmé in its portfolio. L'Oréal is the leading player in this category, due to its controlling position of Niely do Brasil Industrial Ltda from a global brand owner standpoint
Multilatina companies such as Natura and Belcorp lead sales through their ability to offer products specifically relevant to local demographics