Whether women are looking to hide their gray, add a dash of color or tame unruly flyaways, demand for hair colorants and styling products is on the rise throughout Latin America, according to analysts. Brazil, Mexico and Argentina are the three largest markets for hair colorants, according to Euromonitor International. During the past six years (2008-2013) sales have risen nearly 53%. Meanwhile, sales of styling aids have jumped nearly 33% during that time to reach almost $4 billion. In this category, Mexico, Brazil and Venezuela are the top three markets, according to Euromonitor.
On the world stage, figures from the Brazilian Association of the Cosmetic, Toiletry and Perfumery Industry (Abihpec) shown Brazil held a 12.5% share of the hair care market share, making it the No. 2 market in the world, trailing only the US. That’s because hair is extremely important to Brazilian women.
Their obsession is L’Oréal’s obsession. In fact, Brazil is the French multinational’s fastest growing market. Sales rose 13% last year, making Brazil a key market for colorants and hair care products.
Color Is King
According to Abihpec, Brazilian women are the biggest users of hair dye, with the penetration index reaching 98%. According to Abihpec´s data from 2012, Brazil consumed approximately 33,000 tons of colorants—no wonder why marketers from around the world are flocking to Brazil.
P&G Brazil, through its Wella unit, is the No. 1 hair color company, according to Nielsen. With brands such as Koleston, Soft Collor and Pro Vital, P&G controls nearly 21% of the market. This month, the company launches the Reativador de Cor Koleston, an innovation that is said to “reactivate” the color of the hair strands between the first day of coloring and when the time comes to do it again.
The product meets the needs of all the Brazilian women who expressed this desire in a survey ordered by Koleston earlier this year. According to results of the study, 75% of respondents said it would be very valuable/relevant if the colorant could be reactivated between applications.
The Reativador de Cor de Koleston is a conditioner with color pigments, considered as a semi-permanent coloring level; in other words, it reactives color without oxidation and exposure of the hair cuticle. The lineup includes seven different colors: purple, brown, golden brown, copper, red, golden blonde and blonde, which will meet the 43 Koleston nuances.
“Wella is a brand which pursues innovation and the best technologies regarding pigmentation and treatment,” said Laura Vicentini, marketing manager at Wella. “It is our desire to provide increasingly relevant benefits to consumers, such as a color that lasts longer and, now, the possibility to reactivate it for a special need. This innovation will have no impact on the value of the kit already sold and we believe that this will also be an incentive for experimentation.
The brand also has another surprise, the nuance Blonde Silver (98), one of the most sought colors by Brazilian women who love platinum blonde hair color.
Important domestic companies are ranked in top positions and some of them were pioneers in terms of novelties in hair care, which explains their positive performance. Niely do Brasil, for example, had a 16.8% volume share in Brazil for the March/April 2014 period, according to Nielsen.
“Unlike 10 years ago, when hair coloring was only used to hide gray hair, Brazilian women now adopt the new look according to fashion and hair coloring comes ever earlier,” said Delane D´Azevedo, the product manager at Niely. “They are bold, modern, novelty lovers and are always seeking to improve their self-esteem.”
According to D’Azevedo, when women want to change their look, hair color is the first thing they think of, as it is easy to do it at home and there are a variety of products to try.
“It is important to be attentive to the needs of this woman. We must be agile and provide excellent products,” D’Azevedo added.
Niely´s brand Color & Ton has been the Brazilian brand leader in the colorant category for more than five years, according to Nielsen data. The formula has the ability to lighten, darken and enhance the natural color of hair strands, giving more life to reflections or to cover gray. Color & Tone contains keratin, wheat germ and silicone moisturizes and leaves hair with vivid, bright and lasting colors. Its latest launch, Color Chic, contains argan oil, one of the most popular, must-have ingredients of the moment. The formula is said to provide hydration and soft feel, as well as complex vitamins that are essential for healthy hair.
Another important domestic company is Embelleze (Phitoteraphia Biofitogenia Laboratorial Biota). The company, which markets three brands—Maxton, Natucor and Fleury, has a 14.5% in market share in Brazil. The best performing of the bunch is Maxton, which is among the top five colorant brands in the country, posting a sales gain of 15% last year and the company expects Maxton’s sales to increase 10% this year. To stay on top, the company invests constantly in international markets including Spain, Germany, Austria, Switzerland, UK, Ireland, Belgium, Netherlands, Luxembourg, France and Morocco.
Embelleze is also introducing Maxton in Angola and recently was in Dubai to participate in Beauty World, the largest beauty fair in the Middle East. There, Embelleze introduced Natucor, a natural colorant that contains nutrients derived from herbs, flowers and fruits. The formula, which is peroxide and ammonia-free, attracted much attention during the fair. According to Jomar Beltrame, vice president, Embelleze, cultural, ethnic and economic differences profoundly influence the behavior of the global consumer.
“At present, Brazilian women use conventional cream colorants such as Maxton, but they are also very keen on natural colorants which have no hydrogen peroxide and ammonia, such as Natucor,” he explained.
Beltrame told Happi that Embelleze executives were quite pleased with the initial success of Goldshine bleaching powder in the US. The company will try to build on that momentum with the second half launch of ReVitay Shampoo Desamarelador by Maxton, which is suitable for those who want to maintain their blonde or white tresses. Closer to home, in Brazil, the company has launched Maxton 6.1 and 7.1, which corrects and maintains blonde hair.
After a period marked by world declines, the global hair styling market is regaining strength and nowhere is this more evident than in Latin America, according to Euromonitor. Mexican boys and men are particularly fond of styling gel. The biggest player in the category is Summa, which markets Xtreme, a brand that holds a 40% share in the Mexican styling market.
Similarly, hair gel is popular with men and boys in Brazil, especially among more well-to-do consumers. According to Abihpec, penetration and usage has risen by 70% in recent years. Leading the way is Hypermarcas, a domestic manufacturer that owns Bozzano, the No. 1 brand in Brazil. The Bozzano lineup is segmented by holding properties: Mega Strong Fixing Bozzano 4 Gel offers long-lasting, maximum strength hold. Medium Fixing Bozzano 2 Gel offers wet look and natural shine to hair; Strong Fixing Multi-Vitamins Bozzano 3 Gel contains vitamins and minerals that help in conditioning and protection of strands; and Strong Fixing Solar Protection Bozzano 3 Gel provides UV protection.
The styling category still has plenty of room to grow, according to a recent Mintel report about hair care product usage by Brazilian consumers (Base: 1,500 adults aged 16+/January 2014). By analyzing usage levels according to gender, Mintel researchers verified that after the shampoo category, the styling products have the smallest difference between groups. Although there are fewer male users of hair care products compared to female users, the men who use the category do so frequently. The convenience of having short hair and the reduced need for complex hair treatments is behind the high usage frequency of hair care products by men. In fact, the Ipsos Observer/Mintel study found that 41% of men and 61% of women respondents use hair styling products on a daily basis (see chart). As the biggest consumers of beauty products in general, young consumers are always looking for products offering new benefits. That means there are many opportunities ahead!
Daniela Ferreira is a marketing and communication professional in both consumer and B2B cosmetic markets. With a degree in social communication and postgraduate work in business administration, her expertise includes managing and launching products, communication planning, market studies and analysis, and identifying new business opportunities. She also has beauty blog (www.circulodabeleza.com.br), and is a makeup artist and image consultant.