Argentina eliminates export taxes on cosmetics and personal care products

ARGENTINA – Luis Caputo, the minister of Economy in Argentina, has announced the elimination of export duties on 4,411 manufactured goods, including cosmetics and personal care products, in Argentina, to boost industrial exports and improve global competitiveness.

This decision removes export taxes of 3% to 4.5%, benefiting nearly 40% of Argentina’s exporters, particularly fragrance, skincare, packaging, and ingredient suppliers.

The move is expected to lower trade costs for local manufacturers, making it easier to access international markets. 

In addition, global beauty brands may reconsider their regional sourcing strategies, potentially shifting production hubs to Latin America.

The decision follows pressure from small and medium-sized exporters, who argued that export taxes were reducing competitiveness and discouraging international trade. 

While sectors like iron, aluminium, and petrochemicals remain taxed, cosmetics and pharmaceutical preparations are among the key categories that will see reduced trade costs.

In 2024, the exports of these goods reached a total value of USD 3.8 billion, encompassing high-value-added items such as cosmetics, pumps, plastics, and metals.

Argentina’s beauty market boom

Argentina’s beauty and personal care market is experiencing a strong surge, driven by consumer demand for natural, organic, and cruelty-free products.

According to a report published by Mordor, Argentina’s beauty and cosmetics market is thriving, with a projected market size of USD 5.60 billion in 2025, anticipated to reach USD 7.24 billion by 2030, growing at a CAGR of 5.26%. 

The industry is seeing increased demand for natural, organic, and cruelty-free products, driven by consumer awareness and preference for sustainable options.

The cosmetics segment alone is projected to generate USD 503.08 million in revenue in 2025, with an annual growth rate of 10.71%, reaching USD 755.68 million by 2029, according to Statista. 

Online sales are playing a significant role, with 40.1% of total revenue in the beauty and personal care market expected to come from e-commerce by 2025.

Consumers are increasingly opting for eco-friendly and vegan cosmetics, pushing brands to innovate with natural ingredients.

Despite affordable beauty products dominating, premium brands are gaining traction, especially in skincare and colour cosmetics.

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