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Find out more about the trends, challenges and opportunities shaping the future of the personal care market in Latin America.
Amid cost pressures and a highly volatile environment, the personal care industry in Brazil and across Latin America is increasingly turning to premiumization as a strategy to strengthen resilience, according to executives who participated in the first Personal Care Summit, held in São Paulo on Tuesday, June 9.
The event brought together around 150 industry representatives to discuss regional trends and challenges.
The personal care industry, marked by products such as baby and adult diapers, sanitary pads, tampons and intimate wipes, has between 70% and 80% of its inputs linked to the oil value chain, according to Júlio Mendes, procurement consultant for Brazilian paper and personal care manufacturer Santher.
According to the executive, this high dependence has exposed the sector in recent months to a scenario of significant cost pressure and supply challenges, amid rising geopolitical tensions in the Middle East and the closure of the Strait of Hormuz.
“In a moment of rising costs and potential supply shortages, it is necessary to decide what will be the priority. For example, raw materials to produce higher-margin products or inputs that meet the demand of a specific customer. When these fluctuations occur, they significantly increase the workload within the procurement area,” Mendes said.
According to the executive, this scenario requires closer proximity between suppliers and buyers of inputs. Having a close communication channel is critical to mitigate the challenges of volatility, which impact the entire value chain.
According to Euromonitor, the Latin American personal care market is undergoing a period of significant transformation in both value and volume. The consultancy noted that the production of diapers and pants declined from approximately 29.2 billion units in 2020 to less than 28.6 billion units in 2025. Revenue generated from sales also fell, from $8.3 billion to $8.2 billion.
On the other hand, Euromonitor highlighted that the adult incontinence market in Latin America has been expanding, with sales rising from 3 billion units in 2020 to more than 4 billion units last year. In value terms, the market grew from $1.6 billion to $2 billion.
The menstrual care segment also expanded over the past five years, with sales volumes increasing from 28.5 billion units in 2020 to 31 billion units in 2025. In value terms, the market grew from $2.62 billion to $2.74 billion over the same period.
Despite the shifts in demand, industry representatives told Fastmarkets during the event that 2026 is expected to be marked by rising costs and margin compression. The trend reflects the impact of the crisis in the oil market and the resulting supply shock, creating uncertainty over how demand will perform throughout the year.
Marcelo Zenni, regional director of operational excellence at personal hygiene company Softys, said during a panel discussion at the event that the key for the personal care industry to remain resilient is to stay closely attuned to consumer needs and continue advancing the development of products that are softer, offer greater absorbency and provide a better fit to the body.
“With demographic changes and declining birth rates, there is certainly an impact on volumes due to lower demand for diapers. On the other hand, parents are also willing to purchase higher-quality products for their children. Their priority is to ensure the best possible quality of life for their kids,” Zenni said.
The executive also noted that demand for premium products is increasingly reaching the female consumer segment.
“Women are increasingly willing to spend on premium products, and we have to recognize that consumers today are more active and more engaged in sports and physical activities. They need products that deliver greater comfort and well-being. This category is not growing through demographic expansion, but rather through value growth driven by premiumization,” he added.
Advancing the sustainability agenda is still seen as one of the main challenges facing the personal care industry in Latin America. Among the sector’s priorities are the development of products that reduce reliance on landfills at the end of their life cycle, have a lower environmental footprint throughout their lifecycle and, at the same time, are manufactured using renewable and naturally sourced raw materials.
During the event, Zenni said that Softys has been advancing its sustainability agenda and highlighted the company’s offerings in Mexico and other Latin American markets of diapers made with 60% bio-based materials.
“The younger consumer is the same one who is paying attention to climate change, and five years from now they will choose your brand not because you offer a sustainable product, but because they see sustainability as an integral part of your business as a whole,” the executive said.
Other industry representatives also highlighted the challenges of implementing sustainable materials. Because these alternatives often come with higher costs, they can face barriers to adoption by end consumers. In regions such as Europe, for example, progress in the development of more environmentally friendly products has been largely driven by stricter regulations.
An industry participant told Fastmarkets during the event that countries such as Brazil, which are marked by significant social inequality, face even greater challenges in advancing sustainability. This is because a portion of the lower income population still lacks access to basic personal care products and, in many cases, depends on government programs to obtain intimate hygiene items, such as feminine sanitary pads.
“It is difficult to talk about transitioning from fossil-based products to sustainable alternatives when a portion of the population still does not have access to the conventional products currently available on the market,” the participant said.
For deeper insights into price trends and market dynamics, explore Fastmarkets’ comprehensive coverage and analysis of the global nonwovens and forest products industry.