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.
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.