Brazil is the world leader in the volume of fragrance sales per capita, the result of the broad growth the country has experienced in this segment in recent years. The main reason for this trend could be due to the Brazilian habit of using mass-market fragrances, especially in the country’s north and northeast regions, where the most significant market for this type of product in Brazil is to be found.
Several factors have influenced sales in this segment over recent years. One of the main ones is the increased consumption of Brazil’s emerging middle class. In 2008 this market had a turnover the equivalent of 4 billion reais; in 2010 a turnover of 5.63 billion and in 2013 almost 7 billion, with the forecast for 2018 sales of around 8.87 billion reais in this segment. The growth in market value in local currency was 15.7% in 2008; 18.5% in 2010, the greatest growth of recent years, and 2.4% in 2013, with the forecast for 2018 growth of 7.1%.
In dollars Brazil’s retail market turnover in the fragrances sector was 2.238 billion in 2008; in 2010, 3.199 billion and in 2013, 3.240 billion dollars. In 2013 the segment experienced a drop compared to the year before: in 2012 Brazil had a turnover of 3.505 billion dollars.
In percentage, the turnover in Brazil’s fragrances segment represented a growth of 23.3% in 2008; 34.7% in 2010, the greatest growth of recent years, and -7.6 in 2013 compared to 2012. Despite the 2013 downturn, after 2015 the forecast is for sales to once again grow, remaining at positive levels. The forecast for 2018 is a turnover of 3.387 billion, representing a growth of 1.9% over the previous year.
The Brazilian population’s spending per capita in the fragrances market was 11.690 dollars in 2008 and 16.119 in 2013, with the forecast for 2018 16.193 dollars. The segment as proportion of Brazil’s gross domestic product (GDP) was around 0.13546 in 2008 and 0.14452 in 2013, with the forecast for 2018 around 0.12399.
Brazil’s fragrances sector had a 2012 turnover of the equivalent of 6.83 billion reais, divided into a turnover of 3.80 billion in women’s products and 3.03 billion in men’s products. The country’s 2013 turnover was 6.99 billion reais, divided into a turnover of 3.95 billion in women’s products and 3.04 billion in men’s products.
Summary: Annual growth rate
The mean annual growth rate in Brazil’s fragrances segment was 10.2% 2009–2013.
The forecast is for a 5.0% mean annual growth rate in this sector in Brazil 2014–2018.
Companies market share in Brazil’s fragrances market:
Natura Cosméticos SA
In 2012, 32.5% of the market; in 2013, 30.5%.
Botica Comercial Farmaceutica Ltda
In 2012, 15.0% of the market; in 2013, 18.5%.
Avon Products Inc
In 2012, 9.5% of the market; in 2013, 8.5%.
Grupo Silvio Santos
In 2012, 2.5% of the market; in 2013, 2.6%.
Johnson & Johnson Services Inc
In 2012, 1.9% of the market; in 2013, 1.8%.
In 2012, 1.7% of the market; in 2013, 1.8%.
Suissa Industrial e Comercial
In 2012, 1.0% of the market; in 2013, 1.2%.
In 2012, 0.9% of the market; in 2013, 0.8%.
Dana Classic Fragrances Inc
In 2012, 0.6% of the market; in 2013, 0.5%.
LVMH Moet Hennessy Louis Vuitton Inc SA
In 2012, 0.4% of the market; in 2013, 0.5%.
In 2012, 34.0% of the market; in 2013, 33.3%.
Retail market definitions: The research was carried out in a market that included men and women’s fragrances. Body sprays were excluded from the research. Market size is based on all retail sales, including direct sales to the consumer.
Men: This segment includes popular and luxury lines.
Women: This segment includes popular products, luxury lines and unisex products.
Included in the research: Men’s and women’s fragrances. Unisex products are included in the women’s segment. Also included are luxury lines, middle-range sectors and mass market. Perfume, eau de parfum, eau de toilette, cologne, after shave lotions and colognes.
Excluded from the research: Body sprays, makeup preparation products and products for babies.
Sources: Pesquisa Mintel / Mintel Research
III Caderno de Tendências 2014-2015 da ABIHPEC / ABIHPEC’s III Book of Trends 2014-2015