The Latin American beauty industry is suffering from low consumer spending as recession bites in Brazil, according to a report published by WWD. According to analysts, the market as a whole will put on just 3.5 percent this year to reach a value of US$60 billion, versus the 4 percent growth achieved in 2015 and the 6 to 8 percent gains recorded in previous years.

“The whole region is suffering from the economic impact of lower commodity prices, volatile currencies and Brazil’s problems,” Ariel Saiz, Executive Director of Casic told WWD. “From Mexico to the Patagonia, consumers are trading down and seeking affordable products.”

The less mature markets of Bolivia, Paraguay and Peru are expected to outperform the market as a whole, registering 5 percent growth, while sales in Mexico and Colombia will inch up just 2 percent and decline in Brazil, according to Saiz’s predictions.  The ‘trading down’ effect will see the mass market segment dominate sales; brands will need to keep prices low in order to succeed and tempt consumers with promotions and discounts.