In 2015, Brazil’s cosmetics industry suffered its first recession in the last 23 years, with an 8% decrease compared to the previous year, as a result of the impacts of the country’s financial crisis over general consumption.

However, according to the Brazilian Toiletries, Perfumery and Cosmetics Industry Association (ABIHPEC), the country still holds the 4th position among global markets with a 7.1% share of world consumption, behind of United States, China and Japan. The revenue of toiletries, perfumery and cosmetics industry in the country reaches US$ 42 million.

Forecasts indicates that the sector will start recovering in 2017 aligned to current international trends that shows natural ingredients will be the new cornerstone for the cosmetics industry.

A recent study by Euromonitor International showed that worldwide at least 40% of consumers valorize natural ingredients, while in Brazil this number reaches 80%. Such figures indicates that, to maintain relevant to the market, companies will need to change their supply chain strategy, largely dominated by synthetic inputs.

Clariant noticed this shift in the industry and signed an agreement to acquire a 17% share of the South Korean manufacturer BioSpectrum, specialized in natural inputs. In Brazil, Clariant recently acquired 30% of Beraca, the largest provider of Amazon ingredients in the region.

This trend spreads to all segments within Toiletries, Perfumery and Cosmetics sector. Brazil’s major cosmetics companies such as Natura, O Boticário and Avon are all heading to this niche, with new products being launched emphasizing natural components and their origin (e.g. oils from the Amazon forest, Asian fragrances, among others).

Brazil currently ranks as the 2nd largest global market in perfume & fragrances, deodorants, sun care, men’s grooming and depilation segments, 3rd in hair care, childcare and oral care, 4th in bath & shower, 5th in makeup and 8th in skin care.

 

Source: Brazilian Association of the Cosmetics, Toiletry and Fragrance Industry (ABIHPEC)