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    News From Latin America

    Latin America Outpaces R.O.W. In Hair Color Sales Forecast

    ...

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    Daniela Ferreira, Correspondent03.04.19
    Hair color is a big business in Brazil, which is the No. 2 market in the world, only trailing the US and just ahead of Japan, according to beauty industry analysts. The global hair colorants category grew 12.2% in retail value from 2012 to 2017 to top $11.4 billion, according to Euromonitor International. The gains were even more pronounced in Latin America, where sales surged 19.1% during the period to reach $2.5 billion. Sales in Brazil rose 2.5% in 2017 to $1.3 billion; well ahead of Mexico and Argentina, which were Nos. 2 and 3 in the region.

    According to Nielsen, the category suffered during the recession, as Brazilian consumers opted to purchase larger packages and low-priced brands and invest in other categories that they consider a bigger priority; i.e., shampoos and post-shampoo products. However, through 2022, sales of hair color in Brazil are expected to increase 16.7%; that’s better than Latin America (13.7%) and the overall global growth rate of 8.2%, notes Nielsen.

    L´Oréal, Coty and Henkel lead the way on the world stage, and L´Oréal and Coty are the top players in Latin America and Brazil, followed by the Brazilian companies Embelleze (Phitoteraphia Biofitogenia Laboratorial Biota) and Beauty Color (Bonyplus Indústria e Comércio, Importação e Exportação de Cosméticos).

    Tracking Consumer Behavior
    A recent study conducted by Mintel reveals that beyond the price, 45% of Brazilians said that color shades are an important factor for choosing a hair colorant product and 49% of these respondents followed their favorite brands on social media. The study also noted that 16% of women have never dyed their hair compared to 74% of men, creating opportunities for well-known brands since 38% of male consumers said brand knowledge drives their purchase decision.

    Purchasing power drives purchasing decisions, too. According to Beauty Color, due to the severe economic crisis that hit Brazil from 2014 to 2016, consumers who once visited hair salons, opted to dye their hair at home. Newbies relied on websites, social media and YouTube for easy-to-follow tutorials and hair coloring techniques.

    For the past several years, bolder, brighter colors have emerged as consumers become more open to change, regardless of age, according to Beauty Color. Fantasy hair color in Brazil, for instance, was small at first, but every year the trend is growing. Beauty Color predicts this market will grow because it brings many possibilities for changing one’s appearance which meets consumer behavior nowadays. As such, it is a market which needs to reinvent itself every season, and companies have launched more and more color options in the market.

    Another relevant point to consider is practicality with products that are easy to mix and apply. While Brazilians are vain, time is a challenge, and according to a survey conducted by Kantar Worldpanel, 53% would like to dedicate more time to their personal care (48% in Latin America).

    Follow the Leaders
    Hairdressers are struggling to keep up with consumer demand for hair color looks they see on social media. These clients want to be able to change color any way the way they want, without the commitment of permanent hair colors.

    In this way, Schwarzkopf Professional/Henkel recently brought innovations to its demi-permanent hair color line Igora Vibrance in the Brazilian market. Reimagine Igora Vibrance is an advanced moisturizing demi-permanent hair color with a liquid formula that can turn into a gel or cream for more versatility. It is very convenient, too, as the new liquid formula allows quicker and easier mixing and more efficient application. It also offers a full range of 68 colors.

    According to Mintel, damage is still a top concern among Brazilians—whether coloring, treating or styling hair—as 43% of consumers look for hair care products that repair damage and 29% of women say that regularly coloring their hair causes damage. To address their concerns, Beauty Color recently presented some launches such as Purissi and Color Xplode. The first is a permanent coloration without ammonia formulated with nourishing and protective oils that are said to revitalize strands, moisturize and deliver vibrant, long-lasting color. The second is a toning mask with pure pigments that intensify color. The line is vegan and is available in nine shades; all of them formulated with nutritious repairing oils that are said to instantly moisturize hair.

    On the ingredients side, according to Sensient, semi-permanent hair coloring is the ideal answer for consumers who want to express their individuality as it provides benefits such as self-expression (possibility to change color frequently); convenience; increased color longevity; and damage repair (inclusion of extra benefits such as hydration).

    With demand surging for color treatments that last, Sensient has introduced Arianor and Arianor Flash. They consist of cationic dyes for semi-permanent applications that are in compliance with global regulations, as well as a vast portfolio of intense colors for natural and pastel tones. The newest colors within the Arianor range include Arianor Madder Red and Arianor Caribbean BlueOur, both of which were developed with the aid of consumer surveys and color trend forecasts. When the Arianor dyes are combined with Sensistyle Curl Relaxer, the result is a new natural relaxing hair ingredient that enables formulators to develop products that “straighten and dye” simultaneously without damage or color fade, said the company.

    Show Me The Way
    The color segment has many opportunities in product development and promotion. For example, several apps enable consumers to test hair color before dyeing their actual hair, notes Mintel. And as coloring products can be more “fun,” thanks to the different colors possibilities, brands can create more opportunities to draw the public’s attention.  Consumers that play with colors, hairstyles and hair types will lure social media followers. 


    Daniela Ferreira
    Correspondent
    daniester@circulodabeleza.com.br
    Mobile: 55-11-993880867

    Daniela Ferreira is a marketing and communication professional in both consumer and B2B cosmetic markets. At present she is master´s degree student in fashion program at São Paulo University (USP) with research project about fashion and fragrance and also including works presented at conferences. Her expertise comprises managing and launching products, communication planning and market studies for identifying new business opportunities. She also has a blog about perfume, its interactions and insights for the market (https://olfativo360.com.br/)
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