In 2014 colour cosmetics registered current value growth of 10%, reaching BRL8.1 billion. The economic slowdown started to impact the consumption of colour cosmetics by Brazilians, who were thinking twice before purchasing an item on impulse or as an indulgence.
Avon Cosméticos maintained the leading position in colour cosmetics in 2014, holding a value share of 24%; two percentage points lower than its share in 2013. In 2014 the company introduced its new colour cosmetics brand Luxe, which is positioned as a premium product line. Luxe offers a wide variety of lip, eye and face products, including colour palettes.
Colour cosmetics is expected to record a value CAGR of 4% at constant 2014 prices over the forecast period 2014-2019, to reach BRL9.6 billion. The economic slowdown predicted for Brazil in the medium term, combined with the high exchange rate of the US dollar against the Brazilian real, and the elevated inflation rate, are expected to reduce the consumption of colour cosmetics during the forecast period. It is also projected that women will switch to economy brands when they decide to buy colour cosmetics as an impulse or indulgence.