Brazil's export market is tipped for growth

By Katie Bird

- Last updated on GMT

Related tags: Middle east

Brazil’s cosmetics players are capturing Latin American and Middle Eastern markets as exports from the country flourish.

The exportation of Brazilian cosmetics products increased by 21 percent in the first eight months of 2008, according to figures released by the Brazilian Association of Toiletries, Perfumes and Cosmetics Industries (Abihpec).

President of the association, Joao Carlos Basilio da Silva, said the value of exports from the country had risen from $360m to $421m during the period.

Middle East - a strong new market

Much of this is due to the strengthening economies of Brazil’s neighbours. However, the Middle East is also an increasingly strong market according to da Silva.

“Recently in Dubai we had a result that was much higher than expected. The business estimate was close to that of Bologna, the largest cosmetics fair in the world,”​ he said, referring to the recent BeautyWorld Middle East that took place in May.

Approximately $680,000 of business was generated for Brazilian companies from the show, and the association believes this could reach as much as $8m over the course of the next twelve months.

Domestic market looks strong

Brazil’s domestic market has also been performing well in recent months.

Recent figures from US market research company Kline put the country fourth in the global cosmetics market place, with 2007 sales totalling BRL 22bn ($11.69bn).

According to the report released earlier this May, cosmetics and toiletries sales increased 14 percent in 2007 and predictions for growth for the next five years were in the double figures.

However, this year’s growth may not be quite as substantial, according to Abihpec due to unfavourable tax conditions.

“This year we should grow around 8.7 percent. A new tax implemented in February this year compromised the sector performance, which had been growing on average10.9 percent for the last 12 years,”​ said da Silva.

Related topics: Market Trends

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