LA Cosmetic Packaging Market Size

Latin America Cosmetic Packaging Market Analysis

Latin America Cosmetic Packaging Market is estimated to grow at a CAGR of about 4.4% over the forecast period (2020 - 2025). The economic sectors in the region including cosmetics, fragrances, and toiletries play a crucial role not only from an economic and financial perspective but also from a social and sustainability viewpoint, owing to the number of workers that compose the markets, and also the growing investments towards sustainable packaging initiatives drive the market growth.

• There are multiple investments in environmental policies followed in the region for sustainable development. For instance, in Brazil, resources are being invested in natural resource management, nature conservation, and the R & D of environmentally friendly products and processes, such as using green plastic in the packaging and the development of supplier partners communities of natural ingredients and assets.
• Similarly, Mexico is witnessing a growing number of environmentally concerned consumers. Although they are still limited in terms of overall presence, it is expected to increase during the forecast period. This is one of the primary reasons that emerging brands with natural positioning consider the packaging to be an important part of their product concept.
• For instance, the Mexican cosmetic sector is the second-largest market in Latin America after Brazil. According to the Mexican Chamber of Cosmetic Products (CANIPEC), the Mexican cosmetics market's value is estimated at more than USD 10.5 billion, ranking second in Latin America and 11th in the world. This indicates that the Mexican cosmetic market is growing faster, mostly driven by the rising urban lifestyle. Moreover, leading brands are launching new products to support market growth in the region.
• Further, There has been a constant decline in the money being spent by people in the cosmetics and personal care category in regions such as Argentina, primarily due to the economic challenges arising from the drop in the country's currency value. Such an economic slowdown is expected to create opportunities for small packages and cheap packaging in the market. This is expected to create opportunities for the growth of plastics, which are relatively less expensive to manufacture and reduce vendors' logistics costs. In many product categories that are considered essential, like toothpaste, customers remained loyal to brands but purchased smaller units to reduce spending.
• Additionally, owing to the ongoing coronavirus pandemic, the region is witnessing increased demand for alcohol-based gels and soaps to tackle the pandemic. Multiple companies are responding to this increased need for products. For instance, in Apr 2020, in the Colombian city of Cali, a cosmetic company modified its production to face the COVID-19 outbreak and swaps the production facility to manufacture antibacterial soaps and gels for hospitals, nursing homes, and pharmacies.