Latin America represents 13.2% of the world market of cosmetics and toiletries. The region is expected to grow at an annual average of 3.6% until 2021, outpacing the estimated 2.6% growth of the sector worldwide. Local consumption of cosmetics in Colombia reached USD 3.000 million in 2018. This figure exceeds that of countries such as Peru (USD 2.242 million) and Ecuador (USD 1.272 million).
Access to a market of nearly 1.5 billion consumers
From Colombia, a market of nearly 1.5 billion consumers can be accessed, due to the country’s geographical location and signed Free Trade Agreements with countries of the Andean Community, NAFTA, Mercosur, the United States, the European Union, EFTA, the Northern Triangle, and Canada.
Qualified labor force and a large biodiversity
There is availability of a qualified labor force for research and production, with over 140,000 professionals and technicians available for the cosmetics and toiletries sector. Also, Colombia is a leading country in biodiversity. It holds nearly 10% of the world’s biological diversity on only 0.7% of the worldwide continental surface area. It is the country with the highest diversity per square meter.
Multinationals promoting sustained sector growth
Many important multinationals have operations in the country, such as Kimberly-Clark, Belcorp, Henkel, Procter & Gamble, Avon, Unilever, and Yanbal, having invested in distribution, innovation, and development centers as well as production plants. These investments have generated high value-added production and are expected to continue promoting sustained sector growth.
Opportunities for Swiss companies in production, R&D and logistics centers
- The men’s market is gaining importance as more emphasis is placed on the care of the appearance, especially with younger men. There’s an investment (marketing, advertising and training) in this audience that has great potential for consumption. However, the Colombian men's market needs innovation because it has a lot of growth space.
- Another focus is on adolescents: In addition to having an open mind regarding consumption and innovation in Health Care & Cosmetics products items, they are the future consumers who will be won over by brands, soon to start using products for specific problems, such as acne and oily skin. The challenge in this population segment is the increasing frequency of use and repurchase. The development of multipurpose products and shaving products is a great opportunity for this audience.
- Another important group that deserves highlighting in Colombia are the singletons. The opportunity here lies in products to soothe the skin post-shaving, sunscreen and specialized products. Men aged over 45 are also come to take more care of their appearance, buying anti-aging creams without fear of distrust from their friends. This consumption is increasing and breaking down barriers in the search for a better quality of life and more specialized products.
