Givaudan targets growth opportunities in Latin America’s proliferating personal care scene
Givaudan has doubled the production capacity of its encapsulation technologies by expanding its production facility in Pedro Escobedo, Mexico, to meet the demands of its customers in the Latin American market.
Personal Care Insights speaks to Mauro Patrus, regional head of Consumer Products LATAM at Givaudan, about the growth opportunities in Latin America and why beauty companies should pay “special attention” to the region. Patrus highlights developments in makeup, hair and body care.
Encapsulation technology encases active ingredients for skin care within a protective shell, shielding them from environmental factors such as air, light and chemical interactions. It preserves stability and potency until the ingredients are applied to the skin. Encapsulation technologies form one of the pillars of the Givaudan business.
The investment is part of the fragrance and beauty solutions provider’s 2025 strategy, “Committed to Growth, with Purpose.”
How do you expect the personal care industry to develop in the Latin American region in the coming years?
Patrus: I expect the personal care industry in Latin America to experience significant growth above the market average (CAGR 5.8% from 2024-2030) in the coming years, especially led by the hair care category and robust development of the makeup and body lotion segments. The shift toward online shopping, accelerated by the pandemic, will likely continue, providing new opportunities for brands to reach consumers directly.
Givaudan’s facility in Pedro Escobedo, Mexico (Image credit: Givaudan).In this context, digital innovation will also be a key tool to support and drive us to be a more agile and efficient organization, building innovation and, ultimately, driving growth and market development.
Additionally, brands increasingly focus on diverse beauty standards and inclusivity, catering to a wide range of skin tones and hair types prevalent in the region. Premiumization is a massive trend in all categories, and we should be looking for more “Fine Fragrance” codes to address this consumer need. Last but not least, tailor-made solutions focused on generations’ needs (elderly, Gen Z and others) and sustainable and responsible sourcing of ingredients will definitely influence the development and growth of personal care businesses.
Should the industry be paying more attention to the Latin American region?
Patrus: Given the growth potential and considerable fragmentation, our industry and the personal care industry should pay special attention to Latin America. While there has been investment, the region’s unique cultural and economic dynamics suggest that tailored strategies and localized products can generate consistent and out-of-average market growth. In Latin America, we as consumers are scent seekers and the market growth opportunities are immense and spread throughout the region.
Why is Latin America an important market for Givaudan, and the beauty industry as a whole?
Patrus: Latin America is a dynamic, high-growth market with specific needs and good potential for growth. This is an important region for us, and our different creative teams work hand in hand with our customers and local partners to innovate and offer fragrance and beauty solutions that enhance local consumers’ daily lives. This region is also a great source of inspiration for leveraging our local innovations for other markets worldwide.
Givaudan identifies body lotion as a growth opportunity in Latin America.
How will this expansion impact your clients?
Patrus: This expansion will allow us to better serve our customers in the Latin America region. The market is increasingly requesting encapsulation technologies, and at Givaudan, we always adapt our global footprint to remain as close as possible to our customers. In line with our 2025 strategy, Givaudan remains committed to investing in innovation and operations to support our business worldwide.
What can we expect next from Givaudan?
Patrus: Givaudan will keep the focus on being a strategic co-creation partner of the industry. We aim to be “the house of beauty,” leveraging our creative expertise in fragrance and active beauty to develop products that resonate with local consumers. This includes creating scents and formulations that reflect regional preferences and trends. It is about partnering with global and important brands and connecting and building intimacy with local brands to provide insights into consumer preferences and accelerate market and brand development. Differentiation is key, and we believe we are ready to support our partners by leveraging our technologies and fragrance expertise.
