Why Mexico Is Becoming Increasingly Important to Beauty Companies

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Ulta, E.l.f., Sheglam, the Estée Lauder Cos. and many more are expanding their footprint in Mexico.

companies have often talked about Brazil and India when it comes to capitalizing on sales in emerging markets. But recently, the chatter is centering around Mexico, which just elected Claudia Sheinbaum as its first female president.and personal care. However, the road ahead for Mexico’s economy is uncertain with Sheinbaum’s full agenda yet to be revealed, while the outcome of the upcoming U.S. election could alter American-Mexican relations..

In terms of beauty consumers, demand is certainly there. According to data from Euromonitor, Mexico was the ninth-largest beauty and personal care market in 2023 at just over $15 billion, sandwiched between France and Italy. In 2018, it stood at around $10 billion. Among the categories doing particularly well is fragrance. Launched less than a year ago in Mexico, Killian Paris, for example, has quickly become one of the top 10 luxury fragrance brands in Mexico, according to Circana.

As for the overall economy, William Jackson, chief emerging markets economist at Capital Economics, believes there are several reasons to be quite optimistic. But as with everything, there are always risks. In the case of Mexico, there are concerns over what effect the recent election could have on the business environment and, at 11 percent, interest rates are very high.

 

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