U.S. Latinos: Key consumer drives beauty sales

Nielsen released a report on Friday showing a spike in beauty sales last year across all segments within the Hispanic market.

The results were staggering compared to how low sales ranked in the general market, The Chicago Tribune reported.

Among Latinos, cosmetic sales were up 7.4 percent, while general market sales fell 1.2 percent among non-Hispanics. When it comes to hair and styling products as well as accessories sales, the Latino market saw an increase by 3 percent, while sales for non-Hispanics plummeted by 3.6 percent.

Sales in other categories including soap, lotion, facial cleansers and moisturizers all saw better sales numbers among Latinos, sparking a new opportunity for brands and retailers who have yet to lure Latinos to using and purchasing their particular products.

James Russo, who serves as Nielsen's senior vice president of global consumer insight, said when it comes to generating in-store sales Latinos are the way to go.

"You really can't win without the Hispanic consumer," he said.

Due to cultural influences, Hispanics are more likely to experiment with their hair styles or be influenced by the hottest celebrity endorsement, the survey found. They are also more likely to purchase natural and organic-based products, which according to Russo is a category skyrocketing in annual sales among Latinos by 20 percent.

In the U.S. alone, 75 percent of Latinos born in the United States are under the age of 35. The Nielsen report also indicated Latino men take their beauty and appearance very seriously. Compared to non-Hispanic men, sales on shaving cream, hair spray, mustache dyes and after-shave all grew significantly, especially when it comes to fragrance as sales increased by 15.5 percent.

"The story lines across all these data points line up to create an opportunity," Russo said.

Approximately 54 million Hispanics reside in the United States as of July 2013, according to the U.S. Census Bureau. Overall, Latinos make up 17 percent of the mass population and are expected to be the majority, surpassing whites by 2050.

CNBC reported that Hispanics brought in about $1.2 trillion in spending power in 2013. By 2018, that number is expected to increase to $1.6 trillion.

Global beauty expert Karen Grant, who works for the NPD Group, says 2014 was a sad year for beauty sales. It had the lowest sales in six years. "This tells me that beauty shoppers are happy, but some may be seeking happiness elsewhere," she wrote in a news release. "This 'elsewhere' is in other products and services, as well as experiences."