According to data from Abihpec – Brazilian Association of the Personal Hygiene, Perfumery and Cosmetics Industry –, the HPPC (Personal Care, Perfumery and Cosmetics) sector recorded a modest increase of 0.6% in revenue (ex-factory sales) and growth of 2.8% in volume ( tons) between January and May 2020, when compared to the same period of the previous year. Much of this result is a reflection of the expressive increase in the consumption of products of what we call
“COVID-19 basket”, which includes items such as alcohol gel, soaps (liquid and bar), toilet paper and tissues and paper towels .
Among these products directly related to the fight against coronavirus, alcohol gel is highlighted: from January to May this year, the item sold more than 6.3 thousand tons against 0.2 thousand tons in the same period in 2019, corresponding to a growth of 3,127% (Volume / ton) and 2,206% in sales value.
Items in the Tissue segment also showed significant growth in the same period analyzed, totaling an increase of 24.8% (Volume / ton) and 23.8% (Ex-factory sales value) in the division, in which multipurpose paper towels registered an increase of 41.6%, tissues 37.2% and toilet paper 24.1% (Volume / ton). In the personal care segment, liquid soap stands out, a category that grew by 24.3% (volume / ton) and 18.9% (value of sales).
The modest 0.6% growth in sales in the sector, between January and May this year, reflects the changes in consumption that occurred in the period in which the population already complied with the guidelines of social isolation and, given the difficulties faced in the period, is seen by the sector in a positive way.When evaluated in May 2020 versus the same period in 2019, the HPPC sector signaled recovery in its economic results, presenting a growth of 5.2% in sales value and 4.3% in volume, which is possibly a positive reflection of Mother’s Day, mainly in the perfumery segment, which had a 7.2% increase in sales value and 8.9% in volume and also signals the beginning of a sector recovery, versus the months of March and April this year, periods in which the sector felt the impacts of the pandemic more directly.
For João Carlos Basilio, executive president of ABIHPEC, in addition to the crisis caused by the pandemic and the difficult economic context in the country, the performance of the HPPC sector from January to May 2020 also reflects the effects of the increased tax burden suffered by the personal hygiene, perfumery and cosmetics in recent years, which impacts the price of products to the final consumer.
Despite the uncertainties, companies in the HPPC sector expect a better result in the second half of this year and estimate a growth of 1.1% for 2020, however, following a more restrained pace of recovery, since the scenario remains quite challenging. Many companies are taking a cautiously optimistic view for consumption in Brazil and expect sales of HPPC products to follow the general trend with growth rates for some products, especially those in the “COVID-19 basket”.
In 2019, the HPPC sector registered a growth of 4.2%, reaching an ex-factory sales value of R ﹩ 55.7 billion, a positive result even in the midst of the economic recession and the tax reality of the sector, which is today , the second most taxed sector in our country. In the same year, despite the economic and tax challenges, the sector generated 6 million job opportunities, registering a 4% increase in the generation of direct jobs in 2019, when compared to 2018, the equivalent of 5,000 direct jobs.
“This potential could be better used, with a more favorable environment for business, and incentives for expanding production. By generating employment opportunities, through the different channels, the sector provides a positive multiplier effect; moving the economy, promoting entrepreneurship and competitiveness, encouraging professionalization and generating professional self-esteem “, reinforces Basilio.