Brazil to be third main cosmetics consumer market

The success of personal hygiene products, perfume and makeup among Brazilians is great. There is a fever on the market, especially in the case of women, and it is generating significant business for entrepreneurs in the sector. According to the Euromonitor 2005 - International Research Institute, Brazil currently occupies the fourth position among the countries with greatest consumption of cosmetics in the world, losing only to great powers like the United States, Japan and France. The tendency is for, in the next two yeas, the country to reach the third place.

Figures for the country confirm this. Data by the Brazilian Association of Toiletries, Perfumes & Cosmetics Industries (Abihpec) show that the sector presented mean growth, not considering inflation, of 10.7% over the last five years, rising from net revenues of R$ 7.5 billion (US$ 3.3 billion, all values calculated at current exchange rates for comparative purposes), in 2000, to R$ 15.4 billion (US$ 6.8 billion), in 2005.

To the executive director of the Abihpec, Manoel Teixeira Simões, the beauty industry sector bets on an increase in competitive capacity and on sustainable development for companies. "It is a very dynamic market, with companies that have great potential. The proposal is to create measures for micro and small companies to be able to produce according to good manufacturing practices, to become innovative and creative and, thus, to become large companies in future," he said.

According to the study, the growing participation of women in the labour market, the increase of productivity due to the use of state of the art technology, constant releases of new products in the market and increases in the life expectancy of women are among the main factors contributing to the growth of the sector.

According to the study, in Brazil there are currently 1,367 companies operating in the personal hygiene, perfumery and cosmetics sector. Of these, 15 large companies with net revenues of R$ 100 million (US$ 44 million), represent 71.7% of total revenues. Of all companies in the country, 98.8% are micro, small and medium companies.

Productive partnership

A partner of micro and small companies, the Brazilian Micro and Small Business Support Service (Sebrae) is studying the signing of an agreement with the Abihpec and the Brazilian Agency for Industrial Development (ABDI) for the implementation of the cosmetics sector development plan. The objective is to strengthen and provide leverage to the sector with the expansion of its innovative capacity and the modification of the competitive level of small companies.