The pandemic was the breaking point. Digital sales grew more than 200% and consolidated e-commerce as the main channel (70% of transactions). In the Hot Sale, the erotic category generated more than $2 million in one edition, with an average ticket of $7,790. According to the study, the global sex toy industry exceeds US$15 billion and is projected to triple its value in a few years, with more opportunities for Argentina.
Discreet logistics – packages without logos, scheduled withdrawals – and the breadth of catalogs did the rest. For a public that still lives with modesty, buy from cell phone lowered the entry barrier.
He female audience explain between 60% and 70% of the demand. They are followed by couples that seek to rekindle intimacy and a young segment (18–30) that arrives informed by networks and podcasts. The participation of women over 40 years oldoften due to therapeutic recommendation.
In products, clitoris suckers top sales (lines like Satisfyer Pro 2, Love Breeze and Penguin), followed by double stimulation vibrators and rings. The price dispersion is wide: from $10,000 (basic inputs) up to more than $500,000 (erotic furniture) and devices with app/bluetooth that exceed the $200,000.
Lastly, the study identified economic barriers: High prices constitute an obstacle for students and workers with tight incomes.
“The findings indicate that the sector has ceased to be a marginal niche to become a wellness and lifestyle business. Stores invest in decoration, lighting and personalized attention to attract an audience that seeks quality, advice and discretion. This reconversion process responds to several main trends,” noted the UADE study.
Pleasure industry: the panorama of leading brands
Felipe Kopelowicks directs Kopelco SAan Argentine company with more than six decades of experience dedicated to manufacturing, importing, exporting, marketing and distributing products of multiple brands, including condoms. Tulip. Two years after a note made in Ámbito to talk about this growing industry, he returned to dialogue with this medium about the current problems: the lack of campaigns impacts demand, difficulty paying for imports and loss of profitability.
“The condom category continues to decline due to economic issues and lack of campaigns. This year we had to make an association with the people of Preservate to provide education in public schools so that children have access. The use of condoms dropped between 4 and 5 points compared to last year. It is worrying, because it is a critical product,” he said.
On the other hand, he stated that the majority of the products sold are imported. “There is no national industry because there is a lot of design, the costs are high and the scale is very large. We cannot make all the varieties we want on such small scales,” he argued. While stating that the Demand for condoms improved due to lower prices. “We did not make increases, we grew at a volume level but the general pie fell 5 points. We rose compared to the competition.”
In relation to imports, in 2023 Kopelowicks had pointed out the difficulty he had importing under the former SIRA system, but now he has difficulties making payments, due to the cut in margins. “We grew in volume in Paraguay, Bolivia, Uruguay and Chile, but we did not increase in markets. The cooling of consumption is hitting us. We closed a good year because our position in the market increased but we had to reduce the profit margin.”
On the other hand, Miguel Ángel Huarte, CEO of Buttman SexShop, one of the most recognized in the entire country, pointed out in dialogue with Ámbito: “The sector in general is in a kind of transmutation, from the pandemic until 2023, many saw the field as an opportunity, which many tried to dedicate themselves to the wonderful world of sexual well-being. Today after the structural and economic changes, the strongest survived.”
“We have 25 years of experience, we were born in a totally different paradigm from the current one with respect to the field and sexuality. We are constantly creating new lines and products in order to be able to keep up with the world market in technology, designs and a wide variety of products as we always stand out.”
Regarding prices and demand, Huarte pointed out: “Since the beginning of the year we have been doing promotions, lowering prices so we also get rid of stock and thus be able to buy new merchandise. We are also wholesalers, we supply 90% of sex shops. As I said, we are in a transition at a global level, the pandemic at the time pushed the sector and the global industry grew a lot, which is now being restructured due to so much growth. so suddenly.”
“Here in our country, sales are more limited than at other times because people take more care of their income and it is valid, we offer financing,” Huarte concluded.
Outside of the taboo, the sector continues to grow, although it faces high barriers to entry due to the strong penetration of leading brands and limited competition. Both in condoms and in sex shops, dominant players maintain their leadership, but they depend on a still reduced demand. The recession hits all areas, including sexual well-being.
Source: Ambito