Cosmetics in Brazil Inspiring Startups Analysis¶
Inspiring Startups¶
The Brazilian cosmetics value chain is witnessing transformative changes driven by both established players evolving their strategies and the emergence of dynamic startups and new ventures. Based on the analysis of recent activities and trends in 2024 and 2025, several entities and types of players stand out as inspiring these shifts and introducing new business models within the value chain.
One notable example is Skala Cosméticos. While an existing Brazilian brand, the significant majority stake acquisition by private equity firm Advent International in February 2024 signals a new era of accelerated growth and potential disruption to the market's established order. [M&A Movements Analysis, Strategic Priorities and Investments Analysis] Skala's success has been built on offering affordable and vegan haircare products, resonating strongly with a large consumer base. [Market Players Analysis] The investment from Advent is aimed at expanding manufacturing capacity, strengthening distribution, and fostering innovation, enabling Skala to challenge larger competitors on scale and reach, particularly in the accessible haircare and treatment segments. [M&A Movements Analysis, Strategic Priorities and Investments Analysis] This inspires changes in business models by demonstrating the potential for a niche, value-focused brand to achieve significant scale with strategic investment and operational enhancements.
The acquisition of Jequiti by the pharmaceutical company Cimed, expected to finalize in 2024, introduces a significant shift in business models within the value chain. [M&A Movements Analysis, Strategic Priorities and Investments Analysis] While Jequiti traditionally relied on a direct sales model, Cimed's strategic intent is to leverage its extensive distribution network, especially within the pharmacy channel, to expand Jequiti's presence into physical retail. [Market Players Analysis, M&A Movements Analysis, Strategic Priorities and Investments Analysis] This move disrupts traditional distribution channels and intensifies competition in pharmacies for cosmetic sales. Cimed, as a major pharmaceutical player entering the cosmetics space through this acquisition, brings a new business model perspective focused on integrating cosmetic sales within a healthcare retail environment and potentially optimizing logistics through its existing infrastructure.
Natura Ventures, the corporate venture capital arm launched by Natura &Co in June 2024, is actively working to identify and support seed-stage startups that can inspire changes and new business models. [Investment and VC Movements Analysis] With a focus on investing in areas like the circular economy, beauty technology, and customer service technology, Natura Ventures is fostering innovation from external sources. [Investment and VC Movements Analysis] This initiative highlights that disruptive potential is seen in startups leveraging technology for personalized beauty experiences, developing sustainable sourcing and packaging solutions, and enhancing the customer journey across various channels. While specific startup names under Natura Ventures' portfolio in 2024-2025 were not detailed, the fund's existence underscores the role of emerging ventures in driving future value chain evolution in these areas.
Another inspiring startup identified is Healthy Skin (HS), a Brazilian biotech startup focusing on developing products for skin problems experienced by cancer patients. [Business model development in startups: A study of causation, effectuation and bricolage] Founded in 2016, HS leverages biotechnology for specialized, science-backed product development targeting a specific unmet need. [Business model development in startups: A study of causation, effectuation and bricolage] Their business model, which includes incubation within the Hospital Albert Einstein ecosystem and securing different forms of funding, demonstrates an innovative approach to product development and market entry for highly specialized cosmetic/dermo-cosmetic products. This inspires change by showcasing the potential for startups to address niche medical-beauty needs through scientific innovation and strategic partnerships.
Furthermore, the broader trend of the emergence of specialized/indie brands, often operating with digitally native business models, is inspiring changes, particularly in the Marketing & Sales and Retail & Direct Sales stages. [New Entrants and Disruptors Analysis] These smaller brands often focus on specific niches, values (like clean beauty, sustainability, or inclusivity), and leverage online platforms and targeted digital marketing to reach consumers effectively. [New Entrants and Disruptors Analysis] This challenges the traditional mass-market approach of larger players and encourages a focus on personalized engagement and direct-to-consumer relationships, influencing how value is created and captured in these segments.
Table of Potential Impact of the Startups¶
| Inspiring Startup / Entity | Focus Area / New Business Model | Potential Impact on Value Chain Stage(s) | Description of Potential Impact |
|---|---|---|---|
| Skala Cosméticos (with Advent) | Affordable/Vegan Products at Scale, Accelerated Growth | Manufacturing/Production, Logistics and Distribution, Marketing and Sales, Retail and Direct Sales | Increases competition in mass-market and vegan segments, drives need for efficiency in manufacturing and distribution for value products, influences marketing towards value and specific product attributes. |
| Jequiti (and Cimed Acquisition) | Diversified Distribution (Direct Sales + Retail), Pharmacy Channel Entry | Logistics and Distribution, Marketing and Sales, Retail and Direct Sales | Leverages pharmaceutical distribution strength for cosmetic reach, increases competition in the pharmacy channel, influences strategies for integrating direct sales and physical retail. |
| Startups via Natura Ventures | Circular Economy, Beauty Technology, Customer Service Tech | Research and Development (R&D), Sourcing and Production of Raw Materials and Packaging, Post-Consumer, Marketing and Sales | Introduce disruptive technologies in product development (personalization, sustainability), potentially new sourcing/packaging solutions (circularity), and innovative customer engagement methods. |
| Healthy Skin (HS) | Biotech-backed Niche Products, Medical-Beauty Focus | Research and Development (R&D), Manufacturing/Production, Marketing and Sales | Inspires specialized, science-driven product development for unmet needs, highlights potential of biotech in cosmetics, influences marketing towards efficacy and specific consumer conditions. |
| Emergence of Specialized/Indie Brands | Niche Focus, Value-Driven, Digitally Native Business Models | Research and Development (R&D), Marketing and Sales, Retail and Direct Sales | Drives innovation in niche product categories, increases competition through targeted marketing and direct consumer relationships, influences larger players to cater to specific values and segments. |
References¶
- Advent International Announces Strategic Investment in Skala Cosméticos. (adventinternational.com)
- Advent International Invests in Skala Cosméticos | Global Cosmetic Industry. (gcimagazine.com)
- Advent International acquires Brazilian haircare brand Skala Cosméticos. (cosmeticsbusiness.com)
- Advent Anuncia Investimento Estratégico na Skala Cosméticos. (prnewswire.com)
- Cimed avança na compra da Jequiti — e quer 100% da empresa de cosméticos | Exame. (exame.com)
- Por que a Cimed está disposta a pagar R$ 450 milhões pela Jequiti — Exame. (exame.com)
- Com investimentos de R$ 4,1 bilhões, Grupo Boticário anuncia nova fábrica em Minas Gerais, expansão da operação logística e industrial - Grupo Boticário. (grupoboticario.com.br)
- Strategy - Natura &Co Annual Report 2024. (Natura &Co Website)
- VCWire. (vcwire.com)
- Business model development in startups: A study of causation, effectuation and bricolage - REGEPE. (regepe.org.br)
- Market Players Analysis (provided in the prompt).
- Strategic Priorities and Investments Analysis (provided in the prompt).
- M&A Movements Analysis (provided in the prompt).
- Investment and VC Movements Analysis (provided in the prompt).
- New Entrants and Disruptors Analysis (provided in the prompt).
- Value Chain Analysis (provided in the prompt).