A recent study on market trends in Mexico suggests that U.S. direct sellers exploring international expansion should take a close look next door. Market research firm Canadean forecasts that Mexico’s skincare sector will maintain healthy growth through 2017.
Mexico’s steady recovery from economic crisis in 2009, along with a resulting increase in consumption, has served to buoy the country’s skincare market. “Its economy on the mend, Mexico is forecast to record faster GDP growth than Brazil by the end of this year,” according to the report.
Earlier this year, DSN brought you an in-depth look at “Direct Selling’s Billion Dollar Markets”—including Mexico, which came in at No. 6 with $6.3 billion in annual sales. The cosmetics and personal-care categories lead the market, generating a combined 42 percent of all revenue.
Brazil, leading Mexico as the fifth largest market, recorded annual sales of $12 billion. While Mexico’s direct sales market is approximately half the size of Brazil’s, Mexico is tracking to outpace Brazil’s GDP growth in 2013. That incongruence signifies major opportunity for direct sellers.
With a salesforce composed predominantly of women (96 percent), Mexico’s direct selling companies represent the ideal channel to meet the growing demand for skincare products. Some well-established companies include Mary Kay—who entered the Mexican market 25 years ago—and Avon, whose Anew anti-aging brand is a market leader.
We are interested to see which additional companies will bring their opportunity and expertise to this growing market. Look for the latest data on the industry’s billion dollar markets in our September 2013 issue.