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Packaging & design

Mintel reports trend towards larger packaging for cosmetics in Brazil

Fewer visits to retail stores, the practice of sharing CT&F products with family members and reduced waste disposal are among the reasons given by consumers.

Juliana Martins, Beauty and Personal Care Analyst at Mintel

Juliana Martins, Beauty and Personal Care Analyst at Mintel

On the one hand, the Brazilian cosmetics industry is facing falling sales, a stronger dollar and a higher tax burden. On the other hand, unemployment and inflation are rising and leaving consumers with increasingly less purchasing power. Larger packaging may be one way out of this situation, says Juliana Martins, Beauty and Personal Care Analyst at Mintel.

Consumers are looking for ways to save money in their shopping and making fewer visits to retail stores can make them feel like they are spending less. That is where family-size packaging comes in – products last longer and the customer needs to buy them less often,” she says.

Practicality is also a key factor in this trend, particularly in the case of consumers who are reluctant to buy online and go to physical stores to try out and purchase the products. A Mintel report on soaps and bathroom products, released in 2014, showed that 44% of those interviewed said they preferred to feel the aroma of the product before buying it. “This means that fragrance is an important aspect in the purchase decision,” Martins says.

She highlights the findings of a Mintel E-Commerce study, also published in 2014, which showed that 19% of Brazilian consumers had not acquired personal care or beauty products online in the 12 months prior to the research, but admitted they could do so in the future. However, over seven in every 10 of those interviewed (75%) said they had not shopped online in the previous 12 months and had no intention of doing so in the future. “Brazilian consumers feel it is important for the stores to offer them the chance to try out a product before buying it.

Fewer visits to the point of sale add up to the practice of sharing beauty and personal care products with family members. According to Martins, a 2015 Mintel report on baby and child products, revealed that 17% of parents said their children, aged between eight and 12, used the same shampoo or body wash as they did. “The idea is that the same product can be used a number of times, for a longer period, and also be shared with other members of the family,” she explained.

This trend is not exactly new in Brazil, which has traditionally manufactured jumbo-sized cosmetics. However, they were more common in the professional market and have now reached the final consumer in strength, with products such as TRESemmé’s 750ml shampoos and 1kg hair masks. Today, cosmetic companies also have a wider choice of family-size containers available from manufacturers such as Amcor, Monte Sião Plásticos and Globalpack.

Sustainability has also had an important role in encouraging consumers to opt for larger packaging as their disposal has less impact on the environment than a number of small containers. Martins says a recent Mintel survey showed that 39% of millennials prefer sustainable brands.

The move towards family-size containers goes against the trend for small, sophisticated packaging observed in the luxury segment, which is dominated by imported products. However, prestige brands are believed to have felt the effects of the economic recession more strongly as many Brazilian consumers have shifted towards local brands. “Domestic companies are taking advantage of the rising dollar to innovate and reposition themselves on the market, using state-of-the-art technology to develop their products.

She uses the nail polish category as an example – it gained luxury status after French brand Chanel released colors inspired by the catwalk. “Brazilian women did everything they could to buy a bottle of nail polish that costs over US$30. However, our Makeup and Nail Polish report, released in April 2015, showed that 76% of consumers would not pay more than R$10 for a nail polish and 14% would pay between R$10 and R$39.99,” she says.

Amanda Veloso

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