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BRIC: Continued Domination of Global Beauty Sales

By: Carrie Lennard, Euromonitor International
Posted: July 13, 2011, from the July 2011 issue of GCI Magazine.

Most of the major international beauty companies are focusing on expanding their presence in Brazil, Russia, India and China—the BRIC markets—and it’s easy to see why. In 2010, these four markets accounted for 21% of the $382 billion total global beauty industry value size, and this percentage is set to increase to 25% by 2015. They will also account for 54% of the value growth by 2015. The most dramatic increases will come from Brazil and China, yet all remain prime targets for overseas expansion by beauty players, and 2011 continues to witness new entrants to these lucrative countries.

Consumers in Brazil Step Up Their Spend

The Brazilian beauty and personal care market continued to register double-digit growth in its value size, and reached growth of 15% in 2010. While most developed markets still show rather sluggish growth, the South American giant has shown consistently high performances in beauty consumption, both during and after the global economic crisis, and it continues to be one of the driving engines of global beauty industry growth. At $192 per person in 2010, per capita consumption of beauty and personal care products in Brazil fell just short of the average annual $193 consumer spend on the category. While the U.S. spend has remained relatively unchanged since 2005, Brazilians have almost doubled their annual consumption of beauty, up from an already high $107 in 2005. This rapid increase has been mainly driven by rising incomes among mid- and low-income consumers. The main impact of increased incomes is seen in categories such as color cosmetics, fragrances, oral care, skin care and sun care where penetration among lower income groups is growing, and these consumers have only recently begun purchasing items such as nails products, nourishers/anti-agers and sun protections products.

Sales of beauty products through direct sellers accounted for almost one-third of all sales in 2010. It is expected that once retail develops and consolidates, direct selling will begin to lose ground. Yet this retail consolidation could take another decade, and direct selling is set to continue to have a strong presence in the short to mid-term.

Read Brazil Breathes New Life into Global Bath & Body Care for more information on this market.

Russia Bounces Back