The beauty and cosmetics market in the United States is booming and consolidating its position as one of the most promising in the world. With a growth projection of $93.7 billion in 2024 towards $106.7 billion by 2029, the sector has a compound annual growth rate (CAGR) of 2.63%. This scenario represents a strategic opportunity for Brazilian companies that wish to expand their global operations and consolidate a presence in one of the most demanding and competitive markets in the world.

For companies seeking to internationalize their operations, the United States offers a favorable business environment, with consumers willing to invest in innovative, sustainable, and high-performance products. However, international expansion requires more than a good product; a solid strategy is needed, aligned with regulatory requirements and the specificities of the local market.

In this week's article, we explored the main trends in the sector, the opportunities for Brazilian companies, and the strategies necessary for a successful entry into the American market.

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Opportunities in the U.S. Beauty and Cosmetics Market

The beauty and cosmetics sector in the United States not only maintains its global leadership, but also has a constant growth driven by factors such as technological innovation, changes in consumer behavior, and the growing valuation of sustainable products.

Among the main drivers of this growth, the following stand out:

• Changes in consumer behavior: Demand for organic, vegan, and sustainable products is on the rise, reflecting growing concern for the environment and social responsibility.
• Technological innovation: Product personalization, artificial intelligence, and data analysis have shaped new consumer trends, creating new opportunities for differentiation for brands.
• Openness to new international brands: The American market, although highly competitive, is open to innovative and high-quality products, representing an opportunity for Brazilian companies seeking to expand their global presence.

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Market Segmentation and Growth Areas

The American cosmetics market is highly segmented, which opens up several opportunities for Brazilian companies that want to stand out in specific niches. The current market distribution is comprised of the following categories:

• Hair Care: 24%
• Skin Care: 23.7%
• Makeup: 14.6%
• Fragrances and colognes: 9.5%
• Deodorants and personal care products: 8.5%
• Oral hygiene: 5.6%
• Other: 14.1%

The categories with the highest growth potential include:

• Natural and organic products: Health and wellness awareness has driven demand for products formulated with natural ingredients.
• Prestigious fragrances: This segment registered an 8% growth in the first half of 2024, with sales totaling US$ 15.3 billion.
• Digital Beauty: Product personalization and increased online sales are redefining brands' strategies in the digital environment.

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Internationalization Challenges and Strategies

Despite the opportunities, expanding into the American market requires overcoming significant challenges. Internationalization requires robust strategic planning, which considers the regulatory and operational peculiarities of the market.

Key challenges include:

• Regulatory complexity: Compliance with Food and Drug Administration (FDA) regulations is essential for products to enter the American market.
• High logistics costs: The absence of a local operation can generate high transportation, storage and distribution costs, affecting profit margins.
• Intense competition: The U.S. market is highly competitive, requiring clear differentiation in terms of innovation, quality, and brand positioning.

To overcome these challenges, Brazilian companies must adopt the following strategies:

• Detailed feasibility study: Assessing market demand, identifying growth niches, and analyzing competition are essential steps for successful expansion.
• Adaptation to local regulations: Ensuring regulatory compliance from the start avoids legal problems and facilitates the market entry process.
• Strategic Partnerships: Establishing alliances with distributors, retailers, and local marketplaces, such as Amazon, Walmart, and Wayfair, expands reach and makes it easier to adapt to the market.
• Physical presence in the market: Having a logistics partner in the United States reduces costs and improves delivery times, increasing operational efficiency.

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How AdvizeOne and Akin Logistics Support Internationalization in the Cosmetics Industry

A AdvizeOne offers complete strategic support for Brazilian companies that wish to expand their operations in the American market. Our services include:

• Feasibility study: Detailed analysis of the opportunities and risks associated with entering the United States market.
• Incorporation of companies in the USA: Legal and tax structuring to ensure compliance with local regulations.
• Bookkeeping and financial management: Accounting and fiscal control adapted to the requirements of the American market.
• Brand development and marketing strategies: Brand positioning adapted to the American audience.
• Marketplace management: Integration and sales management on platforms such as Amazon, Wayfair, and Walmart.

In addition, through the partnership with Akin Logistics, a company in the same group, we guarantee complete logistics solutions for operations in the United States, including:

• Strategic storage: Reduction of delivery times and optimization of logistics costs.
• Efficient fulfillment: Order processing and shipping quickly and accurately, improving the end customer experience.
• Inventory management and distribution: Integrated operations that ensure efficiency and scalability.

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A Promising Scenario for Brazilian Companies

The United States beauty and cosmetics market offers significant potential for Brazilian companies seeking to expand their operations and consolidate their global presence. However, success depends on a strategic approach that considers regulatory requirements, logistical peculiarities, and local consumer preferences.

With the right guidance and support from experienced partners, such as AdvizeOne And the Akin Logistics, companies can transform opportunities into concrete results and build a solid and sustainable international operation.

Get in touch with us and discover how we can help your brand stand out in the world's most competitive beauty market.