Brazil Surpasses Japan and in 3 Years Should Become Worlds’s Top Market for Cosmetics

Aesthetician's demonstration during Brazil's Beauty Fair

Figures released today by the president of the Brazilian Association of Toiletries, Perfumes & Cosmetics Industries (Abihpec), João Carlos Basilio, in a press conference in São Paulo, show that the Brazilian beauty and personal hygiene product sector had a turnover of US$ 42 billion last year, with growth of 12.8% over 2010.

The figure is still an estimate, but when confirmed, should put Brazil in the second position among the world’s main consumers in the sector, overtaking Japan.

According to Basilio, the earthquake and tsunami resulted in lower consumption in the Asian country. He believes that by 2015 the Brazilian market will be the world’s greatest, exceeding that of the United States, the current leader.

The executive pointed out that the country is already the main consumer of deodorants and children’s products in the sector, and the second in hair products.

In terms of exports, the Brazilian industry shipped the equivalent to US$ 754 million in 2011, growth of 8.7% over the previous year, according to Abihpec. Basilio pointed out that over the last 10 years, foreign sales have grown on average 14.7% a year, whereas the average import growth has been 16.4%.

“Appreciation of the Brazilian real against the dollar resulted in a deficit, albeit small, of US$ 126 million,” he said. “That is not concerning, we do not feel an invasion of imported products,” he added.

This opinion is very different from that of other sectors in the industry that are complaining about competition with imported products on the domestic market.

Among the destinations for Brazilian cosmetics is the Arab world. According to the Foreign Trade director at Abihpec, Silvana Gomes, the market in the Middle East has been generating an “excellent result”. “It is an important market, which accepts the Brazilian products and recognizes their quality,” he said.

In late May, the organization is going to participate in BeutyWorld Middle East, in Dubai, in the United Arab Emirates, through a project for incentive to foreign sales maintained in partnership with the Brazilian Export and Investment Promotion Agency (Apex). The Brazilian stand will have eight companies, according to Gomes.

Before, however, the industry should show its products at Hair Brasil, a sector fair to take place in São Paulo from Saturday (24) to Tuesday (27). Gomes informs that, at the event, there will be business roundtables with Brazilian companies and importers from Angola and Ghana.

Alexandre Rocha, Anba

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