Mexico’s beauty and personal care market was valued at $16.2bn in 2024 making it the ninth largest globally ahead of France and Italy according to Euromonitor. The market has grown steadily from $10bn in 2020, with prestige beauty expanding nearly twice as fast. By 2028, Statista forecasts a 3% annual growth rate, driven by rising disposable income, a young demographic, and increasing female workforce participation.
L’Oréal, which derives 7% of global sales from Latin America, reported 16.2% growth in Q1 2024, with Mexico as its third-largest contributor to global growth. Meanwhile, Estée Lauder previous CEO Fabrizio Freda noted that Mexico has surpassed Brazil in growth potential.
Why is Mexico beauty market growing strong?
Demographic and economic shifts
Mexico’s beauty market is being reshaped by three key demographic and economic shifts. First, the young population presents a substantial opportunity, with over 30 million Mexicans aged 11–26 and more than half the population consisting of Gen Z and Millennials according to InPulse Digital. These younger consumers are driving demand for viral, trend-driven products, as seen with Aora Mexico’s successful chili-infused lip plumpers leveraging Mexican chili as an ingredient. Second, rising female workforce participation has expanded purchasing power, with female employment increasing from 36.7% in 2002 to 43.5% in 2022 according to the World Bank. Finally, premiumization is accelerating as consumers trade up from mass-market products, with Euromonitor noting stronger growth in high-end beauty.
Cultural pride and local brand resonance
Mexican consumers are increasingly embracing homegrown brands that authentically celebrate local heritage and ingredients.
Xinú, a niche fragrance brand founded by Mexican designers, has successfully positioned itself as a luxury niche perfume player by crafting scents from native botanicals like copal and vanilla, presented in handcrafted ceramic vessels that reflect Mexican craftsmanship. The brand’s immersive retail spaces, such as its flagship in Mexico City designed to evoke a tropical garden, have helped it expand to four locations domestically while attracting international attention from niche perfume enthusiasts.
Meanwhile, fashion-beauty hybrid brand Sarelly Sarelly has demonstrated the power of social commerce in Mexico’s digital-first market. After launching on TikTok Shop in 2025, the brand not only achieved viral success through live streams and Spanish-language content but also saw a corresponding double-digit sales boost on Amazon without additional marketing spend.
Digital and social commerce acceleration
The 2025 launch of TikTok Shop in Mexico has made market access for independent beauty brands easier, creating new opportunities for digital-native growth. The platform’s algorithm favouring authentic, localized content has particularly benefited Mexican brands that can natively communicate cultural nuances while capitalizing on global beauty trends.
Sarelly Sarelly’s strategic use of live commerce is a good example. Their Spanish-language streams featuring makeup tutorials and product demonstrations not only went viral domestically but outperformed English content in U.S. engagement tests, revealing the untapped potential of Spanish-language beauty marketing across borders.
This digital ecosystem is further enabled by specialized players like Outlandish, whose “content farm” mass-produces culturally tailored assets for Mexican brands, from unboxing videos to influencer-style testimonials.
Retail expansion
Mexico’s beauty retail landscape is undergoing significant expansion, with both international players and local retailers driving growth. Sephora Mexico has accelerated its store opening targets, revising its plans from 50 to 100 locations by 2030 following stronger than expected performance, while simultaneously seeing its e-commerce business grow at 18% annually as it improves last-mile delivery capabilities. Ulta Beauty is preparing its Mexican market entry through a 2025 joint venture with local operator Axo, strategically focusing on northern border regions where cross-border shopping behaviors are already established. International brands are also leveraging local retailers with Kilian entering El Palacio de Hierro in 2023.
The fragrance boom
Mexico’s fragrance market is gaining attention from both international and domestic players. Le Labo’s introduction of Coriandre 39, a Mexico City-exclusive scent, marks its first Latin American city-specific release, signaling the market’s growing importance for niche perfumery. Local brands like previously mentioned Xinú, are capitalizing on this demand by using native botanicals and immersive retail experiences. Meanwhile, retailers such as Palacio de Hierro and Liverpool are increasing their niche fragrance assortments, providing a platform for both global and homegrown brands. Initiatives like the Museo del Perfume in Mexico City and the annual MxScent expo also reflect increasing customer education and demand.
How can international brands can tap into the Mexican beauty opportunity?
Localized digital strategies
For beauty brands entering Mexico, a Spanish-first digital strategy is a critical success factor. For its launch on TikTok Mexico, e.l.f. repurposed high-performing U.S. creative assets but with Mexican influencers and Spanish-language voiceovers, maintaining brand consistency while localizing touchpoints. Early results showed a 22% higher conversion rate on Spanish-language videos versus direct translations of English campaigns (Merca20). This underscores how linguistic and cultural nuance, and not just translation, impacts performance in Mexico’s social commerce ecosystem.
Furthermore, by analyzing organic social media engagement prior to market entry, e.l.f. identified which SKUs had already gained traction among Mexican consumers through cross-border purchases and influencer content like its Halo Glow Liquid Filter. This data-driven approach allowed for precise inventory planning, reducing the risk of overstocking less popular items.
For established players like L’Oréal, Mexico also serves as a regional content hub, producing Spanish-language assets for broader LATAM distribution. This creates economies of scale while allowing market-specific adjustments, such as regional slang or holiday-specific promotions around events like Día de los Muertos.
Strategic retail partnerships
For beauty brands targeting Mexico, choosing the right retail partner is essential for establishing credibility and achieving scale. Sephora Mexico and El Palacio de Hierro are the ideal locations for prestige brands, offering curated environments that attract high-value beauty consumers. Charlotte Tilbury’s market entry is a good example with the brand initially launching exclusively with Sephora Mexico in 2025, leveraging the retailer’s established prestige clientele before expanding into high-traffic airport concessions and select El Palacio de Hierro locations.
For mass market brands, Liverpool’s extensive network of 1,400 locations provides the best reach. The department store’s recent beauty expansion has created opportunities for digital-native brands like Sheglam to establish physical retail presence. Sheglam’s full-scale rollout across all Liverpool locations demonstrates how the retailer is adapting its assortment to cater to younger demographics seeking affordable, trend-driven cosmetics.
Understanding challenges and risks
Economic volatility remains a concern, with Mexico’s GDP growing only 0.9% year over year in Q4 2024, after expanding 2.4% in 2023 and 4.6% in 2022, while potential U.S. trade policy changes could further disrupt the Mexican economy in 2025. Furthermore Mexico’s high import fees are particularly burdensome for luxury and niche players and retailers like My Scent Journey must absorb these costs rather than pass them to consumers to remain competitive with U.S. pricing. Finally the market’s competitive landscape continues to intensify as global beauty group deepen their local presence. For example Unilever’s $1.5bn manufacturing investment in Nuevo León will strenghten its cost and distribution advantages against smaller entrants.
The rise of Mexican brands in the US: a first step for global expansion
Mexico is an attractive market for international brands but local Mexican brands are also increasingly looking to expand abroad.
Expansion into the U.S. represents a logical first step, given the purchasing power and cultural affinity of the 62m strong Latinx consumer base. According to Nielsen IQ data, this demographic spends an average of $39 more per year on beauty products compared to non-Hispanic shoppers, with particular demand for culturally resonant brands. Sarelly Sarelly’s U.S. performance is a good example. After gaining traction through TikTok Shop Mexico, the brand found unexpected success with bilingual audiences in American markets, where its Spanish-language content outperformed English equivalents in engagement tests.
The brand’s strategic positioning as a heritage-driven Mexican label was instrumental in its success. By emphasizing its manufacturing roots in Mexico and leveraging product names like Telenovela Lip Duo, Sarelly Sarelly tapped into nostalgia and authenticity that resonated with second-generation immigrants. This approach allowed it to differentiate from mainstream U.S. brands while local Mexican production avoided the “imported” premium pricing that often hinders cross-border expansion.
While Mexican brands benefit from existing cultural familiarity, they must still adapt to U.S. retail logistics and marketing norms. Sarelly Sarelly’s Credo Beauty partnership, launching in late 2025, will show if the brand can compete with established clean beauty brands.
For other Mexican brands eyeing U.S. expansion, the playbook is emerging: leverage digital channels to validate demand, then partner with U.S. retailers that cater to bicultural shoppers, such as Target’s expanding Latinx-focused assortments or specialty platforms like MiTierra.
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