Chemyunion eyes further expansion into Europe

By Simon Pitman contact

- Last updated on GMT

Chemyunion eyes further expansion into Europe

Related tags: Brazil, Latin america, Ingredients

Chemyunion has taken huge strides in recent years, expanding its main facilities in Sao Paulo, while also setting up a US headquarters in New Jersey, but now it is looking to Europe.

Having created a strong footing for itself in the cosmetics and personal care ingredient space throughout Europe, executives at the business have been eyeing Europe as its next step, and its first moves are already well under way.

Cosmetics Design caught up with Sérgio Gonçalves, international business development and marketing director to find out about why Europe is so important to its business and how the strategy is being implemented.

Why is the European market so important to Chemyunion?

It is important because Europe is the 2nd biggest market in the world. Also because it houses some of the most relevant industries in the world and we know that if we want to develop businesses with these companies we must be there and move in with a long-term strategy.

What part does the European market play in Chemyunion’s plans to internationalise its business?

Sergio
Sérgio Gonçalves

It is of the most relevant aspects, especially when we look from the perspective of the personal care industry. Europe is diverse, has different customer demands, holds some of the biggest international players and we believe that Chemyunion’s future as a multinational has to include Europe in the plans.

What are the main differences for formulator demands in Europe compared to the Latin American market?

The markets are very different in terms of habits and ethnicity. For instance, in Brazil people value hair care more than skin care. Europeans are the opposite. Sensorial also has its share of differences: while in Europe the consumers will look for more oily creams because of the cold weather, in Latin America, demand is driven for lighter creams and lotions. 

In hair care, the hard water found in Europe, demands a more conditioning shampoo and a good residue remover. In Latin America the water is not so hard so people look for a more powerful cleansing shampoo and focus on conditioners as the functional product to deliver smoothness. Specific to the Brazil market, the consumer will use a combing cream which he or she considers the best treatment for the hair.

Because of the above factors and many others, the variations are quite significant either because the markets are different or because the amount of ingredients available in Europe are much more extensive than the ones available for the local formulator here in Brazil.

How do you see the future of your business shaping up in Europe in, say, the next five years?

Europe is growing slowly and this slower economic pace seems fairly entrenched. The market dynamics, however, are changing. There are more indie beauty brands, while the digital market is quite established, so these areas might bring more opportunities for growth rather than the more traditional ones. At Chemyunion we are structuring ourselves and are developing and adapting our business model to serve this market in more effective ways, with the aim of reaching other business opportunities in short- to mid-term.

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