South America Cosmeceutical Market - Forecast(2023 - 2028)

South America Cosmeceutical Market Overview

South America Cosmeceutical Market size is estimated to reach $9.76 billion by 2026, growing at a CAGR of 9.3% during the forecast period 2021-2026. Cosmeceuticals are products that are intended to have a beneficial effect on beauty and skin health and have both medicinal and cosmetic properties. These products are available as over-the-counter products and are extensively used as a part of the skin care treatment to aid in improvising skin texture, fine lines, and pigmentation. The increase in the demand for organic hair care products, such as hair oils, shampoos, and conditioners, rise in the investment by the key players to develop quality skin care products, such as anti-ageing and moisturizer products, increase in the consciousness among customers regarding physical appearance in the region, and the rise in the adoption of hydroxyl acids in cosmeceutical products are the factors that are set to drive the growth of the South America Cosmeceutical Market for the period 2021-2026. 

Report Coverage

Key Takeaways

• Brazil Cosmeceutical Market accounted for the highest revenue share in 2020 and it is poised to dominate over the period 2021-2026 owing to the rise in the adoption of anti-ageing and moisturizer products in the country.
• The rise in the investment by the key players to develop quality skin care products is driving the Skin Care segment. However, the lax regulations in the cosmeceutical industry is one of the major factors that is said to reduce the growth of the South America Cosmeceutical Market.
• Detailed analysis on the Strength, Weakness, and Opportunities of the prominent players operating in the market will be provided in the South America Cosmeceutical Market report.
  
  

  South America Cosmeceutical Market Size, By Product Type, 2020-2026 (USD Million)

  
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South America Cosmeceutical Market Segment Analysis - By Product Type

The South America Cosmeceutical Market based on the Product Type can be further segmented into Skin Care, Hair Care, Oral Care, and Others. The Skin Care segment held the largest share in 2020 owing to the factors such as the growing demand for multi-functional products and the increase in the adoption of anti-ageing products. The rise in the investment by the key players to develop quality skin care products and dietary supplements is driving the growth of the South America Cosmeceutical Market. The Hair Care segment is estimated to be the fastest-growing segment with a CAGR of 9.9% over the period 2021-2026. This growth is owing to the factors such as the rise in the product launches of hair oils and conditioners and the growing demand for organic hair care products.

South America Cosmeceutical Market Segment Analysis - By Distribution Channel

The South America Cosmeceutical Market based on the Distribution Channel can be further segmented into Supermarkets/Hypermarkets, Specialty Stores, Online, and Others. The Supermarkets/Hypermarkets segment held the largest share in 2020 owing to the factors such as the affordability, choice of brand, and trustworthiness in the supermarkets and increase in the demand for various skin care products in supermarkets. The rise in investment by the key players in countries, such as Brazil and Argentina is driving the growth of the Supermarkets segment of the South America Cosmeceutical Market. The Online Channels segment is estimated to be the fastest-growing segment with a CAGR of 10.3% over the period 2021-2026. This growth is owing to the factors such as the growing inclination towards a sedentary lifestyle, advancements in technology, and the rise in the demand for hair care products in online channels.

South America Cosmeceutical Market Segment Analysis - By Country

The South America Cosmeceutical Market based on Country can be further segmented into Brazil, Argentina, and Rest of South America. Brazil held the largest share with 30% of the overall market in 2020. The growth in this segment is owing to the factors such as the growing adoption of anti-ageing and moisturizer products in the country and an increase in the demand for hair care products among the young population in the country. The increasing awareness about cosmeceuticals, such as skin whitening, facial serums, and face oils is driving the growth of the South America Cosmeceutical Market. Argentina segment is estimated to be the fastest-growing segment over the period 2021-2026. The growth in this segment is owing to the factors such as the rise in the adoption of hydroxyl acids in cosmeceutical products and the growing investment by the key players to develop quality and organic cosmeceutical products.

South America Cosmeceutical Market Drivers

Rise in the Adoption of Hydroxyl Acids

Hydroxyl acids are increasingly being adopted in cosmeceutical products owing to their ability to improve acne and hyperpigmentation. The key players in the region are also focusing on using natural Hydroxyl acids in skin care products to improve the appearance of the skin, which is one of the major factors driving the growth of the South America Cosmeceutical Market.

Increase in the Demand for Organic Cosmeceuticals

Organic ingredients, such as premium botanical and plant-inspired ingredients are extensively being used in various skin care, hair care, and dietary supplements by manufacturers in the region. Moreover, organic anti-ageing products are widely being by consumers in Brazil, which is further propelling the growth of the South America Cosmeceutical Market.

South America Cosmeceutical Market Challenges

Lax Regulations in the Cosmeceutical Industry

The key players in the market are increasing their investment to carry out various research and development activities for launching organic skin care and hair care, products. However, the cosmeceutical industry in the region is extensively uncontrolled and unregulated, which is one of the major factors that is estimated to reduce the growth of the South America Cosmeceutical Market.

South America Cosmeceutical Market Competitive Landscape:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the South America Cosmeceutical Market. Key companies of this market are Unilever PLC, Procter & Gamble, Bayer AG, Beiersdorf AG, Johnson & Johnson Inc, Groupe Clarins SA, Shiseido Co. Ltd, Natura & Co, Croda International PLC, and L'Oreal SA among others.

Acquisitions/Product Launches:

• In May 2019, Natura & Co has acquired Avon Products, Inc. to build a global, multi-channel, multi-brand, and purpose-driven Group, to enhance digital capabilities, and to influence millions of customers with innovative cosmeceutical profiles.

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