Latest figures from the Brazilian Association of Toiletries, Perfumes & Cosmetics (Abihpec) shows that the Brazil market will grow at 8.6 percent in 2008 to reach BRL 21.2bn ($8.9bn), a figure that is currently only matched by the Chinese and Indian markets.
Although the figures are still industry-leading, growth is still significantly down on the year 2007, when the market grew by 14 percent and was placed as the world's fourth largest market for personal care.
Jobs for the boys
Brazil has been enjoying an unprecedented stint of economic growth that has increased the size of the middle class and given consumers substantially greater spending power.
Indeed, that economic development has been fired to some extent by the growth of the country’s personal care industry, with numerous manufacturers and suppliers expanding and taking on new employers to help meet unprecedented demand.
Bearing this in mind, Abihpec stresses that a lot of the market growth has been derived from Brazilian companies, a figure that is reflected by the fact that the personal care market will have an estimated trade surplus of US$200m in 2008.
The lipstick surplus
Accordingly, sector exports should end the year at US$650m, while imports should be somewhere in the region of $450m, Abihpec estimates.
Looking ahead to 2009, the association’s president Joao Carlos Basilio believes that the global economic downturn may spell even greater opportunities for Brazilian personal care exports, as economic conditions are likely to improve the competitiveness of its exports.
In particular, Basilio said that Brazilian personal care manufacturers are likely to be well placed to take advantage of the Middle Eastern market, as economic conditions could make its exports particularly attractive to importers and consumers alike, putting it in a position to build on sales that totaled $2.1bn in 2007.