Brazil Becomes World’s Third Cosmetics Buyer Behind US and Japan

Products for the hair from Brazil's Natura Brazil has risen from the fourth to the third position in the ranking of the main consumers of cosmetics in the world, overtaking countries like France, Germany and England. This figure was supplied by the Euromonitor Research Institute, responsible for the analysis of consumption of cosmetics worldwide.

What elevated Brazil to the third position in the world ranking was an increase in the consumption of sector products on the Brazilian market, which represented growth of 26% in dollars terms, against an estimated growth of 1.2% on the global market.

In 2005, Brazil had already overtaken traditional markets, like Germany and England. Now, with sales of US$ 18.2 billion, the country has also overtaken the French market, losing only to the United States and Japan, which are respectively in the first and second places.

In the last five years, cosmetics sector exports posted accumulated growth of 138%, reaching US$ 484.4 million. In 2006, the appreciation of the Brazilian real against the dollar caused an increase in sector imports, which rose 39%, when compared to the previous year, reaching US$ 294.5 million.

Just last June, Brazilian experts were saying that Brazil would take the third position in the world as top cosmetic consumer by mid 2008. The Euromonitor announcement took them by surprise.

The success of personal hygiene products, perfume and makeup among Brazilians is great. There is a fever on the market, especially in the case of women, and it is generating significant business for entrepreneurs in the sector.

Figures for Brazil confirm the big growth. Data by the Brazilian Association of Toiletries, Perfumes & Cosmetics Industries (Abihpec) show that the sector presented mean growth, not considering inflation, of 10.7% between 2000 and 2005.

Net revenues rose from US$ 3.3 billion in 2000 to US$ 6.8 billion in 2005.

To the executive director of the Abihpec, Manoel Teixeira Simões, the beauty industry sector bets on an increase in competitive capacity and on sustainable development for companies.

"It is a very dynamic market, with companies that have great potential. The proposal is to create measures for micro and small companies to be able to produce according to good manufacturing practices, to become innovative and creative and, thus, to become large companies in future," he said.

According to the study, the growing participation of women in the labor market, the increase of productivity due to the use of state of the art technology, constant releases of new products in the market and increases in the life expectancy of women are among the main factors contributing to the growth of the sector.

According to the study, in Brazil there were last year 1,367 companies operating in the personal hygiene, perfumery and cosmetics sector. Of these, 15 large companies with net revenues of R$ 100 million (US$ 44 million), represent 71.7% of total revenues. Of all companies in the country, 98.8% are micro, small and medium companies.

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