Euromonitor International, a global strategic market research company, has released new data on the beauty and personal care industry in Brazil, pointing out key trends in the industry.
Brazil’s consumers continue to invest in fragrances even with the lingering effects of the economic recession seen in the country in recent years. The category of fragrances presented the greatest growth in 2017 in relation to other categories, with a 12% increase in sales compared to the previous year (in current values).
Despite a faster than expected recovery for the segment in Brazil, 2017 proved to be another challenging year for the beauty and personal care industry. Sales recorded growth of 3% compared to 2016 (in current values) with disparate performances between categories. The expectation is that there will be a stronger recovery for the industry in the coming years. The consultancy’s projection is an average growth of 5% per year between 2018 and 2022 (constant values for 2017).
“Brazilians are cautious about buying and prefer products considered essential. Although initially, perfumes may seem like a superfluous product, there is a very strong cultural factor that positively influences the consumption of the category. This behavior is in line with a megatrend, identified by Euromonitor International as Middle Class Retreat, which indicates that consumers with compromised purchasing power will reallocate resources, giving up some products to prioritize others that they consider to be more important – driven a movement of trade up in certain product categories, “comments Elton Morimitsu, senior research analyst at Euromonitor International.
Promotional activities impact sales of deodorants
On the other hand, the category of deodorants is the one that suffers most during the economic crisis. The category, which has seen consecutive declines since 2013, had its revenues reduced by 8% last year – the biggest drop seen for the category in the last decade. The drop is linked to a reduction in the average ticket spent on this type of product, resulting from intense promotions.
“One of the categories in beauty and personal care most marked by promotional activities is that of deodorants. Brazilians are getting used to visiting retailers and have at least one promotion available on the shelves. In addition to the increase in the offer of “buy 2” products, earn 1 more, the competitive environment has been influenced by an increasingly strong performance of players offering cheaper items, intensifying competition among the main players in the sector “, ends Morimitsu.