The industry of personal hygiene, cosmetics and perfumery of Brazil, closed last year at R $ 47.5 billion (US $ 14.5 billion), a real growth of 2.75%, ex-factory (net of sales tax). The modest result reflects the weight of the losses of 6% and 9% in 2015 and 2016 respectively, plus the heavy tax burden. (Source: Abihpec Market Data Panel)
This information, and all the others that follow, are published and available for download – with graphics – on the 2018 Sector Panorama page on the Abihpec website. Here we publish data relevant to the national industry and also inform our international readers.
The economic crisis experienced by the country after 2015 caused a sharp drop in consumption and a consequent economic recession, with GDP falling back 7%. Although in 2017 the sector showed growth above the economy, such growth was not sufficient to neutralize the losses of the biennium (2016-2017), nor is there any expectation for 2018. (Source IBGE – Central Bank)
“2017 was the year of the price war. The difficulties have led companies to launch products with more affordable prices and to carry out strong promotional activities at points of sale with communication actions, “says João Carlos Basílio, president of Abihpec – Brazilian Association of Personal Hygiene, Perfumery and Cosmetics Industry.
The Total Industry Trade Balance of the Personal Hygiene Cosmetics and Perfumery (HPPC)
In 2017, the trade balance deficit of the HPPC Sector increased due to the appreciation of the national currency combined with the improvement of the domestic market.
In relation to the previous year, exports and imports of products registered growth of 4.5% and 13.1%, respectively, with emphasis on imports of perfumery, which rose by 68.3% (US $ 44 million).
The country exports mainly to Latin American countries. In 2017 the countries to which Brazil most exported HPPC products in the accumulated from January to December were: Argentina (US $ 153.7 million); Colombia (US $ 69.5 million); Mexico (US $ 63.3 million); United States ($ 14.3); Portugal (US $ 12.8 million); Angola (US $ 6,100), among others.
It imports from Argentina (US $ 118 million), the United States (US $ 113.8 million), France (US $ 112 million), China US $ 88 million), Mexico (US $ 63.7 million), Spain 42.1 mi) and Germany (US $ 22.3 mi). (Source: MDIC / SECEX)
O Brasil tem hoje 2718 empresas do setor de cosméticos, divididas entre as regiões: Norte , com 53 empresas. Centro Oeste, com 197; Nordeste, 295 empresas; Sudeste 1643 e Sul com 530, sendo que 15 são de grande porte, com faturamento líquido de impostos acima dos R$ 300 milhões, representam 75% do faturamento total do setor. (Fonte: Abihpec)
Market share in Latin America
Brazil has the largest market share in Latin America. In 2017 this share was 49.1%, followed by Mexico – 14.4%, Argentina – 8.3%, Chile – 5.0%, Colômbiia – 5.0% %, Peru – 3.4%, Venezuela – 2.9%, Ecuador – 1.9%, Guatemala – 1.4%, Puerto Rico – 1.1% Others – 7.2%. (Source: Euromonitor)
In the last 10 years Brazil has had a compound growth of 8.2%. The sector closed 2017 with a growth of 3.2%. It is the 2nd industrial sector that invests most in innovation 1st industrial sector that invests most in communication (behind only trade and consumer services – (Source: Ibope DEZ-2017)
After 2 consecutive years of registering a drop in direct jobs, in the year 2017 the sector returned to present growth of 1.9%.
In the industry, in 2017, 120,6 thousand new posts were created; in Franchises 221 thousand; in direct sales consultants, 3.991 million and in beauty salons, 1.333 million.
Most consumed products in Brazil in relation to the world ranking
According to Euromonitor International, Brazil is the 2nd largest consumer in the segments of: Deodorants, Perfumes, Men’s Products and Sun Protection.
It occupies the 3rd position in: Oral Care, Kids Products and Hair Products. It is the 4th largest consumer in Bath Products. The 5th in Depilatory and Makeup Products. And the 8th market in products for the skin.