The Brazilian Association of the Toiletries, Fragrance and Cosmetics Industry (ABIHPEC) used the occasion of Hair Brasil to announce that the Brazilian Association of the Toiletries, Fragrance and Cosmetics Industry began 2014 optimistic about the sector’s expectations. This sector is one of Brazil’s fastest-growing and most innovative. It has had an average deflated compound annual growth rate of almost 10% over the last 18 years, going from an ex-factory profit, net of sales tax, of R$ 4.9 billion in1996 to R$ 38 billion in 2013.
There are 2,436 Brazilian companies working in the Toiletries, Fragrance and Cosmetics (HPPC) sector, with 20 of these large-scale companies whose net profit is over R$ 100 million, representing 73.0% of total profit. The sector has had a higher growth that the rest of industry in recent years: 9.8% average annual growth in the sector as opposed to the total GDP’s 3.0% and general industry’s 2.2%.
Brazil has maintained its place as the world’s third largest consumer market. There were US$ 43 billion sales of Brazilian HPPC products last year, up a nominal 2.7% over 2012 (Euromonitor data). China rose to second place following a 10.8% growth to US$ 44.2. The Japanese market experienced a drop of 17.7% in profit to US$ 39 billion and fell from second to fourth place. The US continued in first place, with sales of US$ 73.3 billion, a rise of 1.8% over the previous year.
The balance of trade of HPPC products over the last ten years has had an average compound annual growth rate of 10.2% in exports 2003- 2013, and 21.4% per annum in imports 2003- 2013.
Sueli Ortega is the Publisher of the bilingual website CosmeticosBr