EMIS Partners: Your Market Report by Yourside on the Personal Hygiene, Perfumery, and Cosmetics Market
Your Market Report by Yourside on the Personal Hygiene, Perfumery, and Cosmetics Market
The Your Market report, developed by the Yourside team – the M&A arm of Arton Advisors, an investment boutique focused on wealth management – presents strategic analyses and insights from its Market Intelligence team. By combining market research, data analysis, and industry expertise, the report adds value for its clients by offering market knowledge that contributes to maximizing the value of their companies.
In this edition, the report focuses on the personal hygiene, perfumery, and cosmetics (PHPC) market, providing a detailed overview of the sector, including market data, key trends, segments with the greatest growth potential, as well as mergers and acquisitions (M&A) activity and valuable insights.
The Sector
Over the past five years, the Brazilian Personal Hygiene, Perfumery, and Cosmetics (PHPC) market has grown at an average annual rate of 7.5% — a pace 2.7 times higher than the global average for the same period. In 2023, Brazil reached the 3rd position in the global industry ranking, behind only the United States and China, with sales totaling USD 31.3 billion. Among the standout segments, the country ranks 2nd in the world in the deodorants, fragrances, and men’s products markets.
Expanding Markets
The men’s, children’s, and sun care product markets have been gaining prominence within the PHPC (Personal Hygiene, Perfumery, and Cosmetics) sector, driven by new demands and changes in consumer behavior. According to Yourside, these categories represent attractive opportunities as they are still relatively underexplored, opening space for innovation and pioneering initiatives. Additionally, they align with major movements such as Gen Z’s redefinition of beauty and the growing interest in health and well-being.
Despite their potential, these segments still face some challenges, such as low public awareness and the need for investment in educational content to better engage and inform consumers.
Key Industry Trends
Clean beauty: Natural ingredients are gaining ground in the Brazilian market. According to Mintel, the number of product launches with the clean beauty label increased by 23% between 2018 and 2023. This trend reflects a shift in consumer behavior: 42% of Brazilians have already adapted their purchasing habits to reduce environmental impact, taking social, ecological, and economic factors into account throughout the product lifecycle.
NeuroGlow: The 'NeuroGlow' trend brings a more holistic approach to beauty, combining appearance with mental and emotional well-being. Concepts such as Psychodermatology and Neurocosmetics, which explore the connection between mind and skin, are expected to gain prominence with the advancement of integrative technologies, inclusion, and personalization.
Sophisticated Simplicity: Consumers will increasingly prioritize products with effective, science-backed ingredients, placing value on clinical studies when making choices. Simplicity, minimalism, and efficiency are expected to guide both consumer behavior and brand positioning, including packaging and design.
AI in Beauty: Artificial Intelligence is set to play an increasingly important role in the beauty and personal care industry, making products and services more personalized, efficient, and effective. Brands will invest in individualized recommendations, virtual try-ons and testing, and data-driven insights to differentiate themselves and better meet consumer expectations.
M&A in the Sector
The rise of DNVBs (Digitally Native Vertical Brands) in the Personal Hygiene, Perfumery, and Cosmetics (PHPC) sector has driven an increase in mergers and acquisitions in Brazil, attracting both strategic and financial buyers.
Between 2020 and April 2024, 23 strategic deals were recorded in the sector — a significant jump compared to just 4 between 2015 and 2019. Strategic buyers sought to expand their presence by entering new categories and channels or consolidating markets where they already operated. At the same time, investment funds began to view the PHPC sector as an attractive opportunity for future consolidations.
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About Yourside
Yourside is the M&A arm of Arton Advisors, an investment boutique focused on wealth management. Standing out from the traditional M&A market and with a strong emphasis on Market Intelligence, Yourside is dedicated to maximizing company value through strategic approaches and market insight. For more information, visit www.yside.com.br.