With total sales of €10.6bn in 2024, Brazil is the fifth largest beauty market in the world behind India (€16bn) and in front of Germany (€10bn) notably driven by a huge fragrance segment representing half of the market.
Overall growth prospects remain strong for the coming years with a projected CAGR of 5.2% between 2025 and 2030 versus 3.4% for the rest of the world.
This growth is notably driven by the luxury beauty segment which currently represents 9.2% of the total market and is expected to expand nearly twice as fast over the next five years. Luxury fragrances represent more than 60% of the luxury category and Brazil is the second largest Latin American market in this category behind Mexico.
Among the fastest growing categories is facial makeup and notably blushes, bronzer powders and highlighters according to Ana Seccato from Circana. Lips products offering hydration benefits are also driving the growth.
When looking at international players, Chanel has the strongest presence generating around one third of luxury beauty market sales.
What is driving the Brazilian beauty boom?
1 – The cult of beauty
For Brazilian consumers, beauty products are not a nice to have, but are rather essentials. According to Nielsen, 72% of Brazilians say they would never stop buying cosmetics, the highest score in the world and 12 points higher than in the USA. Beauty rituals are embraced by all Brazilians, men and women, rich and poor. For example, according to the Brazilian Association of Beauty and Hygiene, 98% of Brazilians residing in favelas also engage in a daily beauty ritual.
Beyond everyday routines, beauty is an integral part of Brazilian culture as notably showcased by the vibrant makeup used during carnival festivities.
2 – Rising revenues
Despite Brazil still being the most inequal country in Latin America, inequalities have been decreasing with the Gini coefficient going down from 54.7 (2000-2010) to 52.9 (2010-2022) according to the IMF. For reference, 0 on the scale represents perfect equality.
Furthermore, Tendências Consultoria estimated that the Brazilian middle class (defined as households earning more than $550 per month) surpassed 50% for the first time in 2024.
With a GDP per capita that should increase by 28% between 2024 and 2029 according to the IMF, the average Brazilian should continue to see its disposable income growing in the coming years.
3 – The increasing social influence
Brazilian consumers are among the most sensitive to social media and influencers. According to our internal analysis, out of the 100 beauty brands accounts with the most followers in the world, 10 are dedicated to a specific country or region and Brazil ranks first with 4 local accounts: Sephora Brazil (3M), Maybelline Brazil (2.3M), Marie Kay Brazil (2.3M) and MAC Brazil (2M). Not only are Brazilians avid followers of social media, but they are also heavily influenced by it. Qualibest estimated that half of Brazilians already purchased a product because of a recommendation from an influencer.
With social media usage expected to surge from 81% of the population in 2023 to 91% in 2029, it represents a real catalyst for the beauty market.
4 – The untapped potential of e-commerce
Brazil still lacks in retail digitalization with offline beauty sales representing more than 80% of the market (vs. 39% in the US). In particular, D2C retail stores represent 10.7% of the market. Yet, online sales are catching up, growing three times as fast as offline sales and set to represent 25% of all beauty sales by 2029.
Furthermore, the Brazilian beauty market also benefits from the popularity of door-to-door selling, a selling technique which made the initial success of Brazilian beauty group Natura in the 1970’s. According to the World Federation of Direct Selling Associations, about 3.5m Brazilian people were involved in door-to door-selling in 2022, generating a turnover exceeding $9bn (all industries included) placing Brazil as the seventh largest market of door-to-door selling in the world.
A difficult market for international brands
Despite the apparent opportunities that Brazil presents for international beauty brands, it is a difficult market to conquer.
1 – Strong protectionist measures
Brazil has long been a highly protectionist country with a complex and multi-layered tax system. Import duties are among the highest for beauty products with final effective import taxes ranging from 60% to 80% depending on the region. As such, only two type of international brands can succeed in Brazil: luxury brands which do not compete on pricing but rather name and prestige and large international groups that have the investment capabilities to set-up factories in Brazil.
When it comes to luxury perfumes, as most of them remain imported from Europe, average prices are very high in Brazil (around 200€ for a standard 100ml luxury perfume) which also explains the significant share of perfume sales in value on the overall market.
2 – A diverse customer base
Brazil is one of the most racially diverse countries in the world. Initially populated by Portuguese settlers and African slaves, it saw a new wave of immigration in the 19th and 20th centuries from Southern Europe, Germany, Lebanon and Japan. More than 55% of the population identifies as black or mixed-race creating a strong demand for products catering to diverse skin types and tones or hair textures requiring brands to entirely rethink their product assortments for the Brazilian market. With a clearer focus and understanding of these diverse needs, native brands generally hold an advantage over their international counterparts.
3 – A strong local competition
Capitalizing on the importance of beauty in the Brazilian culture, taking advantage of local ingredients and being partially sheltered from international competition by tariffs, Brazilian beauty groups and brands have been thriving.
According to estimates from Cosmetic Innovation, Natura and Grupo Boticario are the two cosmetic market leaders in front of international competitors, holding a combined 25% stake of the Brazilian market.
Founded in 1969 by Antônio Luiz Seabra, Natura is a Brazilian cosmetics company that has evolved into a global beauty group generating more than €4bn globally in 2023 and is often dubbed as the “Brazilian L’Oréal”. Its differentiation strategy centers on ethical sourcing, environmental responsibility, and social initiatives.
Established in 1977, Grupo Boticário began as a small prescription drugstore and has grown into Brazil’s largest perfume and cosmetics franchise network generating €1.4bn globally in 2023. The company distinguishes itself through its commitment to high-quality products incorporating Brazilian ingredients like açaí, cupuaçu, and guaraná.
When Brazilian beauty brands go global
With such a strong position on their home market, Brazilian brands have a real global expansion potential and are proving increasingly popular with international customers. This notably follows the 2021 acquisition of Sol de Janeiro by L’Occitane. Despite the brand being of US origin and only really inspired by Brazil, it was still largely popular with customers who bought into the belief that the brand was in fact Brazilian. The aggressive communication campaigns following the acquisition boosted global consumer interest for Brazilian beauty.
Brazilian brands can notably emphasize their use of traditional ingredients to appeal to an international audience increasingly looking for green products. Moreover, conjunctural elements such as the weakening Real, enhancing competitiveness and government sponsorship also enter into play. As such, Brazilian beauty exports increased by 16.6% over the last two years reaching $927.3M in 2024 according to the Brazilian Association of the Personal Hygiene, Perfumery, and Cosmetics Industry. Grupo Boticario reported a 40% annual international growth in 2024, focusing notably on the UAE (Brazil’s 4th beauty export market).
In conclusion, with the potential of Brazilian beauty brands abroad, the biggest business opportunity for global groups might not be the Brazilian market itself but rather Brazilian beauty. Independent Brazilian beauty brands might therefore become increasingly hot M&A targets for international groups in the years to come.
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