Mintel highlights Brazil as ‘natural beauty hot spot’
In an article penned by Mintel expert Ana Claire Bernades Torres, it is highlighted that the Brazil market is now estimated to be valued at $19 bn after years of double digit growth rates.
Bearing in mind this growth, the fact that eight of ten Brazilian skin care users indicate a preference for products that use natural ingredients, the indicators are clear over what type of product consumers want to spend their money on.
Although there are a number of leading Brazilian players carving out a significant niche for themselves in this market, highlighted by Natura, international natural cosmetic players are increasingly being drawn by what they see as the potential for further growth in the market.
Forming business in Brazil just got easier
Until last year, forming a business in Brazil was difficult for international players because it was a complex and bureaucratic practice that often necessitated a Brazil-based partner.
However, last year authorities in Sao Paulo streamlined the process to form and register a business, which has set a precedent in the country, and has also turned the heads of many expanding international cosmetic companies.
Bernades points out that Lush returned to the Brazil market after a seven year absence in June of this year with a new 400 metre square store in Sao Paulo, its biggest ever individual retail space.
Kores, Yves Rocher and L'Occitane all in on the act
But the expansion of international natural cosmetics players does not end there. Bernades also point out that France-based L’Occitane set up its Brazil subsidiary in March of 2013, and the Body Shop entered the market earlier this year through a partnership with Brazil retailer Emporio Body Store.
The blog also points to the expanding presence of Yves Rocher, which says it wants to open 300 stores in the next 10 years, while Greek player Korres has taken a different strategy by signing a distribution agreement with Avon.
“The natural beauty market is clearly growing and offers more than ever to consumers,” Bernades’ blog entry states.
“Despite the fact that the Brazilian economy is slowing down, the Brazilian natural beauty market remains dynamic and will continue to attract international brands who want to expand their name overseas.”
