The Brazilian cosmetics industry primarily developed itself on the ground of a huge domestic market, partly protected by high tariffs and taxes. Brazil is currently the third largest cosmetics market in the world, and has already pulled ahead of traditional markets like the United Kingdom and France, ranking only behind the United States and Japan.
Strong growth on domestic market
According to projections by Euromonitor International, Brazil is the second largest consumer of toiletry, hair care, oral care, kids’, men’s and deodorant products; it’s the third largest market of sunscreens; it ranks fourth in makeup products, fifth in bath care products and eighth in skin care products.
The Brazilian cosmetic, toiletry and fragrance industry association (ABIHPEC) recorded an average growth of 7.4% in volume and 15.1% in gross sales in the past 5 years. In 2008, ABIHPEC expects the industry to grow by 11%. Manufacturers should invest about USD 100 million a year until 2010, primarily in order to expand the production capacity of already existing factories.
According to ABIHPEC, about 70,000 new cosmetics are launched every year on the domestic market to meet the demand created by the large diversity of hair and skin types resulting from Brazil’s great ethnic variance.
Ethic and ecology
Brazilian cosmetics makers have also developed a great expertise in using the features of their country’s biodiversity. Special properties of active ingredients found in the Amazon regions’s rich flora are a source of inspiration and of raw materials to many of them. This led to the creation of exclusive formulas.
Furthermore, many Brazilian companies claim to source ingredients from renewable extraction processes, ultimately creating jobs and income for local communities, thus perfectly matching the current trend for both natural and ethical products. Unfortunately, only a few of them currently use third party certification to substantiate their claims.
New comers on foreign markets
It’s only recently that Brazilian cosmetics companies have started tapping into foreign markets (ABIHPEC export project began in 2001). From 2003 - 2007, the industry exports recorded a cumulated growth of 165%, to reach USD 537.5 million.
Some of the most important European retail chains and department stores already market Brazilian products, including Groupe Auchan SA, El Corte Inglés, Carrefour, Groupe Casino, Liberty, Printemps, Farmácia Findor, Biocosme and Monoprix. Brazilian products are also available to the public in smaller retail chains, franchises and company sales outlets. Natura, one of the leading Brazilian cosmetics company, opened its own store in Paris three years ago.
Under the coordination of ABIHEC and with the support of the Brazilian Trade and Investment Promotion Agency, APEX, four companies will represent Brazil in this edition of Beyond Beauty Paris: Amazônia Viva, Quasar Esthétique, Vidal Life and Surya Brasil.
In its second participation in Beyond Beauty Paris, to be held October 5 - 8 in Paris-Nord Villepinte, ABIHPEC announced that the Brazilian beauty industry will be presenting products that combine technological innovation and sustainable practices. To be continued.
