Brazil set to be world's third largest beauty market by 2007
Last year the country's beauty consumers spent a massive $13.8bn on
cosmetic and toiletry products, according to Euromonitor International,
reflecting a strong economy and significantly increased spending power
amongst the country's 184 million population as well as a big increase
in industry exports.
"We expect that, with an annual growth above 20 per cent, we'll be
able to move up to 3rd position in 2007 or 2008", said Joe Carlos
Baselio da Silva, president of ABIHPEC (Brazilian Association of the
Cosmetic, Toiletry & Fragrance Industry).
The jump means that the Brazil cosmetic and toiletry market is now
behind that of the US and Japan, and if the growth continues, it should
overtake the third-placed France market within the next two years.
The association said that the growth was attributed to tax
reductions on products such as sun care products as well as the
creation of new niches and the industries continued efforts to increase
sales, both nationally and internationally.
It also means the country's cosmetic and toiletry industry has now
leap-frogged the traditionally dominant markets of Germany and the UK,
but with a population greater than these two countries combined, the
potential for further increase should prove significant if economic
growth can be sustained.
"Brazilian exports of personal care products, toiletries and
cosmetics grew 23 per cent in 2005, which is about 15 per cent over the
international average. These figures show that Brazil has been boosting
its share of the world market year by year", said Joeo Carlos Basilio
da Silva, President of ABIHPEC.
On the domestic front, it seems that Brazil's fast-growing
population is enjoying the fruits of the country's hard-earned economic
recovery. ABIHPEC reports that there was a 9.3 per cent rise in
volumes, whereas the value of sales rose by 14.5 per cent. Sales growth
is expected to ebb off in 2006, settling to a more modest 10 per cent.
But it is the export market that has seen the real growth. ABIHPEC
reports that the sector's growth registered 120.7 per cent in the last
five years, reaching $407.6m.
In recent years the Brazilian cosmetics industry has been working
hard to promote itself overseas. This has been attributed to work put
in by ABIHPEC and the Brazilian trade and export board APEX, which has
helped to fund and organize the participation of many leading Brazilian
cosmetics players in global trade events.
Likewise the appreciation of the Brazilian real against the dollar
also helped imports to grow by 34.8 per cent to reach $211.3m in 2005,
with many international brands taking the opportunity to expand their
presence on the market.
On the production front expansion is expected to continue apace,
with leading manufacturers forecast to make continued investment of
$100m per year to expand plant facilities.