The factory, which will produce both flavors and fragrances, is designed to allow Bell to tap into domestic growth opportunities, as well to improve market access for its international customers, the company said.
“This new facility will allow us to grow even further with our current customer base and also future customers,” Bell’s general manager for Brazil, Paulo Barros told CosmeticsDesign.com USA.
Headquarters of South American hub
According to Barros, the factory will contain around 15,000 sq feet of manufacturing space, and is designed to be the headquarters for Bell’s South American operations.
In the short-term, it will supply only the Brazilian market, he said, although its reach could be extended in the long-term to supply other South American countries such as Argentina, Chile and Uruguay.
Barros said that over the last two years, the company has seen ‘great opportunities’ for continued growth in the Brazilian cosmetics market.
“Bell has been working with the personal care and tanning care industries in Brazil over the last five years, and we believe that there are great opportunities to bring some of our key fragrance innovations to the Brazilian market,” said Barros.
Prior to establishing the factory, Bell had worked with its customers on delivering technical, marketing and finished products to the Brazilian market, he said.
Brazilian cosmetics market
Citing figures from the Brazilian Association of Toiletries, Perfumes and Cosmetics (Abihpec), Bell said that the cosmetics market in Brazil is the world’s third largest market behind Japan and the US.
In 2008, the market volume was $28.77bn – representing 8.6 percent of the global market, and in the last 13 years, revenues have jumped for $4.9bn in 1996 to $21.7bn in 2008.
Hair care represents the largest market sector in terms of exports for Brazil, followed by soap and oral care, according to Abihpec.