Prestige beauty generated sales of more than 3 billion reais (around USD 576 million) in Brazil last year, an increase of 13% compared to 2022. “Globally, 2023 was an extremely positive year for the prestige segment, with double-digit growth in mature markets like North America and Europe, and Brazil was no exception,” commented Ana Seccato, Client Development Director Brazil & Argentina, at market research company Circana.
Makeup products drive sales
The makeup category was one of the main drivers of prestige beauty growth last year in Brazil. Representing a third (R$1 billion) of the total prestige beauty market, it recorded a growth rate of more than 25% in 2023. “Historically, makeup has always benefited from greater penetration rates in Brazil than in other Latin American countries. Booming globally, the category is benefiting from a post-pandemic effect. In Brazil, as in all countries, it is driven by social networks and generation Z.”
Ana Seccato particularly highlights the success of facial makeup products, such as blushes, bronzer powders and highlighters, particularly in liquid form, or in cream or stick form, for a more refined and natural finish. Lips makeup also saw strong results, particularly products offering a hydration benefit.
With an increase of 16%, prestige skin care also experienced an above the average growth, to generate approximately 270 million reais in sales in 2023. “Even if their penetration is lower, skin care products have strong development potential in Brazil. We see constant growth in the prestige category in recent years and the focus is on luxury products (with an average cost of R$ 1,400), which represent just under a fifth of the total category", emphasized Ana Seccato.
Perfume remains the main category
On the other hand, with an increase of 7% compared to 2022, prestige perfumes experienced slower growth than the overall market. According to Ana Seccato, the resumption of international travel may have had a negative impact on local purchases.
Despite this weak performance, the perfume category remains the most important in the segment. “The high average price is one of the factors that contribute to the weight of the category, particularly with the development of the luxury perfume market (with an average price of R$1,300) in the country,” she said.
Furthermore, even in volume, the importance of the category remains high in the country, representing more than 40% of the total market. “Fragrance penetration in Latin America is the highest among the macro-regions in which Circana operates. Brazil is therefore very attractive for global players in the sector, because it is the second largest Latin American market for prestige perfumes, behind Mexico,” explains Ana Seccato.
According to her, sales of prestige beauty are expected to continue growing in Brazil in 2024. “The market is expected to remain consistent with what we saw in 2023, with double-digit growth, influenced by global trends, entry new brands and strong online sales,” concludes Ana Seccato.
