Latin America sees a sharp increase in online Beauty and Cosmetics sales
While Beauty and Cosmetics is growing rapidly across nearly every emerging e-commerce market, Latin America has been at the forefront, showing an increase of 133% in category spend on PayU platforms in 2020. External analysis shows that total predicted online spend on beauty and cosmetics across Latin America is expected to reach USD $4.3bn in 2021, up from USD $3.8bn in 2020.
Although external data in our report showed a dip in total spend (both online and offline) on Beauty and Cosmetics in 2020, the proportion of sales made via e-commerce channels is increasing, creating many opportunities for merchants. Between 2019 and 2020, PayU saw total year-on-year online spend in Mexico increase on our platform by 1410%. Brazil was also up 1276% on 2019 levels.
In Colombia, PayU’s hub in Latin America, while external data showed a dip in total spend on beauty and cosmetics overall in 2020, the amount spent via e-commerce channels increased by 19%. Across our own platforms we noted an increase in spending far exceeding this pace of change, showing an average year-on-year spending increase of 70% between 2019 and 2020.
Throughout Latin America we onboarded a high percentage of beauty and cosmetics specialist merchants in 2020, showing the huge demand for buying beauty products online and the need for local merchants in this sector to adapt to new retail conditions.
Turkey leads EMEA
E-commerce sales in Beauty and Cosmetics have also grown rapidly in Turkey over the past year-and-a-half, with over half of all sector spend in 2021 and beyond now expected to take place online. Of the four sectors we investigated, Beauty and Cosmetics benefitted from the largest year-on-year increase in consumer spend on the platform of Iyzico, PayU’s payments partner in Turkey (229%).
This was the largest increase across all six EMEA markets we explored, with the biggest increase coming last year in Q2 (392%) versus the same period in 2019. According to external data, by the end of this year average year-on-year e-commerce spend in Turkey’s Beauty & Cosmetics segment is projected to have grown by 80% since 2019.
The picture in South Africa
Though not quite at Turkish levels, the online Beauty and Cosmetics sector is also growing quickly in South Africa, and is expected to be worth more than USD $169m by the end of 2021. This amounts to a 69% increase on 2019 e-commerce expenditure, which stood at $100m.
According to the PayU platform, year-on-year spend in Beauty and Cosmetics grew by 140% between 2019 and 2020. Spending particularly ramped up in Q3 2020, increasing by 229% compared to the same period in 2019.