BEAUTY AND PERSONAL CARE IN MEXICO - ANALYSIS

Country Report | May 2018

EXECUTIVE SUMMARY Market Sizes

Beauty and personal care is a growing market in Mexico Sales of Beauty and Personal Care
Retail Value RSP - MXN million - Current - 2003-2022
In 2017, beauty and personal care in Mexico posted a high single-digit current value
sales increase coming from a combination of volume growth and unit price rises that
resulted from high inflationary rates in the country. Growth drivers in 2017 also 178.250 Forecast
included innovation and marketing campaigns attracting consumers’ interest in trading 250.000
up to more sophisticated products, such as those with multifunctional benefits, or mass
products that incorporate ingredients and delivery formats resembling those of
premium brands. Lipstick, women’s razors and blades, and face masks registered 200.000
outstanding growth in 2017 thanks to beauty and personal care’s trends. Distribution
highlights include the accelerated growth of internet retailing and the high relevance
that direct sellers continue to have in the competitive landscape. 150.000

Beauty and personal care internet retailing is the fastest growing

channel 100.000

According to Asociación de Internet.mx (the Mexican Internet Association), in 2016 the

percentage with internet access reached 70% of the population, up from 66% in 2015. 50.000
This reflects how the number of potential internet retailing consumers increase year-
on-year.
0
Beauty and personal care internet retailing continued to post double-digit value 2003 2017 2022
growth, being the fastest growing channel in 2017. Although internet retailing
represents only a minimal share of beauty and personal care value sales, its dynamism
motivates brands and retailers to invest in the channel’s development. This includes Sales of Beauty and Personal Care
retailers across different channels, for example grocery retailers such as Walmart, % Y-O-Y Growth 2003-2022
health and beauty specialist retailers such as Farmacia San Pablo or Sephora, and
department stores such as Liverpool. Pure players like Amazon and Mercado Libre also
play an important role in the growth of beauty and personal care internet retailing,
7.3% Forecast
either through third party merchants or through brands that offer their products first- 10%
hand. For example, Colgate and L’Oréal Paris offer their products through Amazon.
In addition to retailers, several brands have already engaged in internet retailing. This 8%
is more common within premium brands; however, over the forecast period it is likely
that new e-commerce portals will be launched by mass brands. This could include
direct selling brands like Avon, Mary Kay and Zermat, which in 2017 already had 6%
internet retailing sales.

Strong international companies lead beauty and personal care 4%

The top three players in beauty and personal care are Colgate-Palmolive de México SA
de CV, Unilever de México S de RL de CV, and Procter & Gamble de México SA de CV. 2%
Each is present in several categories, for example, Colgate-Palmolive’s core business is
oral care, but it is also present in bath and shower and deodorants.
0%
Innovation is among these companies’ priorities and their new product launches are 2003 2017 2022
always supported by strong marketing campaigns. For example, during 2017, Head &
Shoulders and Pantene posted double-digit value growth thanks to Procter & Gamble’s
advertising investment in mass media including TV, billboards and magazines. Head &
Shoulders and Pantene also undertake important activity in social media.
Leading companies’ competitive strategies include having different brands in the same
category, which ensures they reach a variety of consumers. For example, Unilever de
México’s skin care portfolio includes Dove, Vasenol, Pond’s and St Ives Swiss Formula.
In terms of distribution, the top three players each have wide coverage within modern
and traditional grocery retailers, health and beauty specialist retailers and mixed
retailers such as warehouse clubs.

Innovation brings dynamism to beauty and personal care

Given the competitive environment for some beauty and personal care categories,
innovation will remain a relevant strategy for companies to differentiate themselves
from their competitors. For example, Candiflux Dedicado a Ti intimate wash has
launched a product marketed for girls between four and 12 years old. The product is the
first intimate wash in Mexico targeting a specific age range. Isdin Sun Brush is another
example of differentiating innovation. The product is a sun protection powder applied
with a brush like powder make-up.
Innovation is also an important growth driver for several categories. For example,

© Euromonitor Interna onal 2018 Page 1 of 3

growth in premium fragrances tends to come from flankers, such as Gabrielle by Chanel
or CH 212 VIP Black by Carolina Herrera.
Sales of Beauty and Personal Care by Category
Retail Value RSP - MXN million - Current - 2017 Growth Performance
In categories such as colour cosmetics, new product development ensures that the
brand offers the latest trends either in colours or delivery formats. Baby and Child-specific Products
7.831,0
Given that in all beauty and personal care categories there are similar examples on how Bath and Shower
innovation is crucial to expand brands’ potential consumers, it is expected that new 11.594,4
product development will remain a priority for leading companies. Colour Cosmetics
29.463,8
Beauty and personal care expects further growth over the forecast Deodorants
13.087,2
period
Depilatories
1.223,3
Beauty and personal care is expected to post low single-digit CAGR growth at constant
2017 prices over the forecast period. Population rise and product innovation will Fragrances
25.420,5
contribute to the growth of categories such as shampoos, manual toothbrushes and bar
soap. Smaller categories like men’s bath and shower, intimate hygiene or face masks Hair Care
34.349,3
will achieve growth by reaching new potential consumers. Innovation will continue to
play an important role in the competitive landscape by motivating consumers to Men's Grooming
27.954,3
expand their grooming routines or try products with improved formulations.
Oral Care
In terms of channel distribution, beauty and personal care internet retailing is expected 14.058,0
to be one of the fastest growing channels, on the one hand because of the growing Oral Care Excl Power Toothbrushe...
number of Mexicans with access to the internet, and on the other hand because of the 14.042,8
investments that both beauty brands and retailers are making to develop the channel. Skin Care
33.428,3

SOURCES Sun Care

2.036,5

Sources used during the research included the following: Premium Beauty and Personal Care
24.204,3

Summary 1 Research Sources Prestige Beauty and Personal Car...

22.200,2
Official Sources American Chamber of Commerce of Mexico (AMCHAM) Mass Beauty and Personal Care
132.633,7
Ins tituto Na ciona l de Es ta dis tica Geogra fia e Informa tica (INEGI)
Secreta ria de Economia 0% 10% 15%

Trade Associations As ocia ción Denta l Mexica na BEAUTY AND PERSONAL CARE 178.249,5 CURRENT % CAGR % CAGR
YEAR % 2012-2017 2017-2022
As ocia ción Mexica na de Agencia s de Publicida d (AMAP) GROWTH
As ocia ción Mexica na de Venta Directa (AMVD)
As ocia cion Na ciona l de la Indus tria de Productos Na tura les
La Cá ma ra Na ciona l de la Indus tria de Productos Cos méticos (CANIPEC)
Competitive Landscape
Memoria Es ta dis tica Ca nipec
Socieda d de Quimicos cos metologos de Mexico
Company Shares of Beauty and Personal Care
Trade Press Al deta lle % Share - Retail Value RSP - 2017
Alto Nivel
Bea uty Bus ines s News Colgate-Palmolive de Méx... 9.7%

CNN Expa ns ión Unilever de México S de ... 8.7%

Cos ma de.com Procter & Gamble de Méxi... 8.6%
Cos metique News Mary Kay Cosméticos de M... 5.8%
Cra in's de Mexico Cosbel SA de CV 5.2%
Crea tiva News letter
Avon Cosmetics SA de CV 4.5%
EFE
Dirsamex SA de CV 4.4%
El Economis ta
Genomma Lab Internaciona... 2.8%
El Fina nciero
El Siglo de Torreon Frabel SA de CV 2.8%
El Univers a l Natura Cosméticos México... 2.4%
Europea n Cos metic Ma rkets Coty México SA de CV 2.4%
Expa ns ión Kimberly-Clark de México... 2.1%
Fina ncia l Times
BDF México SA de CV 1.9%
Forbes
Qualamex SA de CV 1.9%
Green Cons umers Guide
Estée Lauder Cosméticos ... 1.8%
Ha ppi Ma ga zine
Interna tiona l Cos metique News Puig México SA de CV 1.8%

Ma rketing-up Johnson & Johnson de Méx... 1.5%

Merca 2,0 House of Fuller SA de CV 1.5%
Milenio Private Label 0.8%
Mundo Ejecutivo
Others 29.4%
Profeco - Revis ta del Cons umidor
Quiminet.com
Reforma
Reuters
Revis ta Empres a rios Mundo Ejecutivo
Revis ta Expa ns ion

© Euromonitor Interna onal 2018 Page 2 of 3

 Official Sources American Chamber of Commerce of Mexico (AMCHAM) Brand Shares of Beauty and Personal Care
Soa p Perfumery & Cos metics % Share - Retail Value RSP - 2017
Ultra Femme Mary Kay 5.8%
Source: Euromonitor Interna tiona l Colgate 4.7%
Jafra 4.4%
Gillette 2.4%
Natura 2.4%
Palmolive Caprice 1.9%
Head & Shoulders 1.6%
Palmolive 1.5%
Fuller 1.5%
Pond's 1.4%
Pantene 1.4%
Nivea 1.4%
Zest 1.3%
Savilé 1.3%
Rexona 1.2%
Dove 1.1%
Sedal 1.0%
L'Oréal Paris 0.9%
Private label 0.8%
Others 61.9%

Increasing share Decreasing share No change

© Euromonitor Interna onal 2018 Page 3 of 3