"The Americas [1] continued to be a dynamic hemisphere for Beauty and Personal Care products in 2012 with more potential for growth in 2013," says Euromonitor’s Latin American Research Manager, Sean Kreidler. "Latin America is very active in expanding awareness with its consumer base by way of direct selling and expansion with modern store-based retailers. In North America, Canada and the USA lead product innovation and customer shopping experiences."

Another difference between North and South America: mass cosmetic products - or products at a lower price point - represent over 90% of sales in every country in Latin America, whereas premium cosmetics account for 35% of sales in Canada and the United States.

According to the market research firm, direct selling represents over a quarter of all beauty and personal care sales in North and South America, which is the highest regional share in the world. Direct sellers continue to expand in Argentina and lead the market in Bolivia. Brazil, on the other hand, is seeing a push toward store-based retailing, with the expansion of beauty specialist retailers such as Sephora. Several other Latin American countries are experiencing strong retail growth as pharmacies and hypermarkets are now reaching consumers where only direct sellers ventured before.

Men, innovation and premiumization

Apart from direct selling, Euromonitor International identifies four other main trends:

Middle income consumers benefiting from the economic growth drive beauty and personal care sales throughout Latin America, most notably in Brazil and Peru. On the other hand, Argentina and Venezuela are battling surging inflation that has eroded consumers’ purchasing power.

Men’s grooming continues to shine in Bolivia, Brazil, Canada, Chile, Costa Rica, Peru and the USA; however, men’s grooming might struggle in Colombia, the Dominican Republic and Ecuador where future potential lies in men increasingly making their own purchasing decisions.

Premium products keep growing in Chile, Costa Rica and México and remain a priority for many consumers in Venezuela, despite poor economic conditions. In Canada, premium brands are recovering to drive growth.

Product innovation is growing rapidly in Bolivia and México. Canada and the USA are seeing advanced skin care technology development, and the demand for products containing natural ingredients present growth opportunities in Colombia, Costa Rica and the Dominican Republic.

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