Region/Countries: Mexico, North America Industry: Other Date: November 2018

Why this is important to Wisconsin businesses: The market is witnessing significant growth and also shifts such as increasing interest in organics and increasing use by men.

The Mexican toiletries market refers to products such as perfumes, cosmetics, deodorants, creams, lotions hair care, and wipes used for improving the appearance of or caring for the body. The toiletries market is witnessing significant growth in terms of sales and technological advancements over the past few years because of increasing consumer awareness regarding personal hygiene and health. Growing concern for skin care are particularly fueling robust growth across all market segments and geographies. Increasing demand for organic and natural cosmetics and toiletries is creating new growth opportunities in this field and encouraging the emergence of new market players in this arena.

Mexico’s largest trading partner is the U.S. Although Mexico does have strong domestic players in this category, international companies still dominate the market, with over 70 percent of the total market share.

The following factors are influencing the Mexican toiletry market and consumption patterns:

  1. Growth of the middle class, driving growth in mid-range products by price point. There has been increased demand for toiletry products and sales growth in the more mature categories such as shampoos and soaps. Newly middle-class consumers seek products with advanced and multipurpose formulations. Less mature categories, such as sunscreen, are increasing sales, offering products for families that previously would not have been able to purchase them.
  2. Men are now target customers for toiletry products. Research shows that Mexican men of all ages are increasingly concerned about their appearance and health, particularly with hair loss, dandruff, white teeth and clear skin. Makers of these products have observed this opportunity and begun catering to men’s needs and developing advertising campaigns for men.
  3. Skin care: During 2017, consumers displayed a tendency to select basic skin care over premium and specialty products. For example, while general purpose body care grew by 4 percent, hand care only increased by 2 percent, and while facial moisturizers grew by 3 percent, lip care contracted by 5 percent. Skin care products that performed less well included those considered easily replaceable by “multi-purpose” products. This was the result of an economic slowdown during 2016, which together with new taxes taking effect in a number of foods and beverages, limited consumers’ disposable income, making them cautious when making beauty and personal care purchase decisions. Unilever led skin care, with 14 percent market share, in 2016. The company has several brands, including Dove, Vaseline, Pond’s and St. Ives, and enjoys a strong distribution network in modern grocery retailers and health and beauty specialist retailers. Skin care is expected to register a compound annualized growth rate (CAGR) of 1 percent at constant 2017 prices over the forecast period, to reach about $1.5 billion in 2019. Population growth and demographic changes will support the growth of the mature skin care segment, while innovation and marketing campaigns will support the sales of smaller products.
  4. Supermarkets/hypermarkets (traditional retail) extend sales of toiletry products. While premium brands are traditionally sold in department stores or cosmetics stores, some prestige brands have extended their sales to supermarkets/hypermarkets, aiming to compete with less sophisticated mass brands. With the creation of smaller and more accessible packaging, this segment is reaching a consumer base with less purchasing power. That being said, this is not the trend for the majority of premium brands, which continue to be sold via traditional channels, since they intentionally position themselves as prestige or status brands that are out of reach of lower-income consumers.