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BRIC Key for Future Growth
By: Carrie Lennard, Euromonitor International
Posted: June 3, 2010, from the June 2010 issue of GCI Magazine.
page 2 of 2According to Euromonitor statistics, with 14% compound annual growth 2004–2009, the Brazilian beauty industry is one of the fastest growing in the world. In 2009, its value sales stood at $28 billion, making it the third largest beauty market. Fragrances registered an excellent performance in 2009, with current value growth of 17%—a trend that is set to continue and will make fragrances one of the fastest-growing categories in the Brazilian beauty market. Deodorants are often used as a more affordable substitute for fragrances by lower-income consumers, and this meant, despite only accounting for 10% of total value sales in 2009, the Brazilian deodorants sector is the biggest in the world.
India Begins to Build on the Basics
The Indian beauty market is still very much focused on basic hygiene products such as shampoo, bar soap and toothpaste, contributing the bulk of value sales. Hair care, bath and shower, and oral care products accounted for a combined 71% of total market size in 2009. Emerging, however, is an emphasis on appearance, and not just cleanliness, which is the key driver behind growth in deodorants (29% value growth 2008–2009), color cosmetics (26%) and depilatories (23%) as consumers start experimenting with “less essential” product types. Frequency of use of basic skin care, including facial cleansers and moisturizers, is also rising as the twice-daily facial regime becomes more entrenched.
Outlook: BRIC to Drive Global Beauty Growth
According to Euromonitor International, BRIC holds additional major opportunities for international beauty brands, as these countries add a combined $22 billion in absolute growth. As BRIC attracts greater involvement from multinational companies, this will help to expand penetration rates and lift value sales through the introduction of sophisticated and premium beauty products, meaning these countries will continue to be instrumental in future growth in beauty.
Carrie Lennard is a research analyst at Euromonitor International.