Latin America, a key export market for EU cosmetics and perfumes

Latin America It is a key export market for cosmetic and perfume products produced in countries of the European Union (EU)and is, outside of the European continent, the region with the most exports from Spain, according to the Spanish X-ray of the National Association of Perfumery and Cosmetics (Stanpa) of 2022.

In this sector, the 51% of exports in Spain are directed to the EU and 49% They go to non-EU markets with Mexico, Brazil and Chile as the main destinations in Latin America.

Of this type of consumption, perfumery is one of the most exported categories with a 40%; In addition, it is the one that registers the greatest growth in Latin America with a 72% compared to 2021 figures.

This number almost doubles in Mexico by 2022, a market where an increase of 159% in perfumery and in other categories such as personal hygiene and grooming products with a 51% and hair care with a 33%although in these last two cases the Latin American countries that show the most growth are Paraguay and the Dominican Republic.

Italy’s growth in the sector

Another EU country that is also having a strong presence in the region is Italy, since Mexico during 2023 became the main Latin American destination for exports in perfumes and cosmetics, due to an increase in 52% Regarding 2022, Italian Government authorities and the Italian Cosmetics Association highlighted.

The sector, worth US$88 million in 2023, expects similar growth during 2024, exceeding US$108 million this year, authorities said.

In this regard, during the Italian Beauty Day event, held in the Mexican capital, the Italian ambassador to Mexico, Alessandro Modiano, said that the enclave has surpassed Brazil in this sector, the ninth largest economy in the world and one of the major destinations for Italian exports.

“Mexico is a country with a high potential for the export of cosmetic products, thanks to the size of the market and the ongoing socio-economic development, which represents an important opportunity for international growth for Italian companies,” the diplomat stated.

At the meeting where Italian cosmetics were promoted to international operators and at the upcoming Cosmoprof Worldwide Bologna trade fair in March, Fabio Franchina, Vice President of Cosmetics Italy, pointed out that alcohol-based perfumes dominate with 62 million dollars, followed by hair care products with 20 million.

The strength of the perfume category in the region is similar to that of Spain, and according to Franchina, skin care and makeup products are aiming for strong growth, with a 51.4% and a 75.2%respectively.

One factor that is sparking Italy’s interest in the region, and especially in Mexico, is the phenomenon of ‘nearshoring’ or relocation because, according to the director of the International Trade Agency ICE/ITA, Olga Gravela, “The production chains will increase the potential for Italian investments, especially to serve markets such as the United States.”

“Mexico’s proximity to the United States is very important and ‘nearshoring’ represents an opportunity, since many companies from different countries, including Italian ones, want to invest in production plants or in trade in Mexico and can also form alliances with Mexican companies.”he concluded.