Brazil cosmetics market exceeds predicted growth rates
Provisional figures from the Brazilian Association of the Cosmetic, Toiletry and Fragrance Industry (ABIHPEC) shows that industry sales rose by 18 per cent between January and June 2009, without discounting for inflation.
ABIHPEC said the estimate was derived after analysing sales data from its associates for the first four months of the year, and then estimating the figures for May and June. ABIHPEC also claims that it represents 90 per cent of the Brazilian cosmetic and toiletry industry.
Growth predictions have all been conservative
The association’s president, Carlos Basilio believes that the estimate for the first six months of the year is probably conservative, falling in line with the fact that it had also predicted sales would grow by only 5 per cent in 2009 at the beginning of the year.
“Since the sales pace traditionally picks up speed in the second half of the year, everything indicates that the real growth [discounting inflation] for the CT&F industry will be 11 per cent or higher,” said Basilio.
This figure builds on an industry valued at BRL 21.7bn (€7.86bn) in ex-factory sales for 2008, which was already 10.6 per cent up on the figure for 2007.
Incomes, ads and new launches drive growth
ABIHPEC believes that the reason for the continued industry growth in Brazil is down to the fact that worker income has not been significantly compromised during the current global recession, combined with the cultural trait that means Brazilians will not compromise on hygiene because of its association with good health.
However, Basilio points out that the industry itself has played a major part in cultivating continued growth, due to the fact that it has continued to invest in new product launches, backed up by further investment in research and development.
To top all of this the industry has also been plowing ahead with marketing and advertising drives, which Basilio says has enabled the industry to “not only maintain close relations with the consumer, but to grow ever closer.”