In fact, Brazil became the largest perfume market in the world in 2010, surpassing the US. Columbia and Argentina also enjoyed an increase in beauty sales, prompted by an expanding middle class and cultural fascination with personal beauty. South America is one of the most exciting markets to watch globally for beauty products, with annual sales of approximately $80 billion in 2012.

In particular, the cosmetic industry seems to be booming in South America. Jamie Concha Prada, president of the Council of Associations of Latin American Cosmetics Industry (CASIC) told EFE that, “Emerging nations are showing some of the highest figures for growth, and Latin America is the region with the second highest.” Jamie also pointed out that the cosmetics industry in South America had grown an astounding 314% in the last decade, only being outnumbered in growth by Eastern Europe. According to Associacao Brasileira dos Distribuidores de Laboratorios Nacionais, cosmetic products sales were expected to increase by 11% to 20% in Brazil in 2014. Brazil isn’t the only nation with a growing cosmetics industry. The cosmetics market grew by 31% between 2011 and 2013 in Columbia, and annual growth in the cosmetics market is up 10% in Ecuador and Uruguay and 3% in Columbia. Regardless of the country, the cosmetics industry is flourishing in South America and is a hot-spot for investors.

Surprisingly, according to Euromonitor, the Americas are a highly divided beauty market, as mass products are thriving in South America while prestige beauty products are fueling most of the growth in North America. Recent research reports that over 90% of sales in every country in South America are represented by mass cosmetics while they only account for 35% of sales in the US and Canada. It seems that South America is more focused on direct sales and expanding modern store-based retailers while North America leads product innovation and customer shopping experiences. A staggering quarter of all beauty products sales in South America are made by direct sale, the highest out of any global region. It must be recognized, however, that premium products sales are growing in Chile and are actually a priority for individuals in Venezuela, despite poor economic conditions.

South America’s top three beauty categories are cosmetics, hair care, fragrances, and skincare. Hair care product sales are expected to rise from US$11.3 billion to US$15.8 billion in 2015. Fragrances and skincare are also said to grow dramatically in the next few years all over South America. Market research shows that product innovation is rapidly growing in Bolivia, primarily in skincare. In addition, products containing natural ingredients are showing growth in Columbia. Finally, the male grooming sector of the beauty products market is booming in Bolivia, Brazil, and Chile. However, Euromonitor warns that men’s grooming might struggle in Colombia.

The forecast for beauty and personal care remains optimistic in the upcoming years, but economic slowdown, inflation, and market saturation in South America may strongly impact the industry in the near future. Still, the passion for beauty and personal care products, combined with launches in innovation expected from manufacturers almost guarantees continual growth until 2018. Focusing on particular trends in independent countries in South America will likely help investors hone in on the most booming marketplace for their specific category.