Yes, there’s the rainforest and biodiversity, but the country is about so much more, as
cosmetic chemists found out at the recent symposium developed by the New York
Chapter of the Society of Cosmetic Chemists.
COSMETIC CHEMISTS the world over can parrot at least a few of the ingredients found in the Amazon, Brazil and, increas- ingly, global cosmetic formulas. But the country is much
more than a sourcing station for açai, buriti and babassu, insist industry experts who detailed the beauty of Brazil and the Brazilian
beauty industry in a one-day symposium sponsored by the New
York Chapter of the Society of Cosmetic Chemists (NYSCC).
“Companies are looking for new sources of growth and revenue,” explained Marie Thadal of Coptis who co-chaired the event
with Steve Herman, PJS Partners. “Brazil presents many opportunities, as well as challenges in terms of customers, competitors,
regulations and the environment.”
All of those topics, and a few more, too, were discussed at length
during the event, which was held on May
12, just prior to the NYSCC Suppliers’ Day.
Next year’s symposium, set for May 11,
2015, will take an in-depth look at India,
another vast, quickly emerging market for
the global cosmetic industry.
But this year, the focus was on business
in Brazil and Eddy S. Mayen, who overseas
implementation of the international business development strategy for New Jersey,
reminded attendees that chemicals are the
No. 1 business in the state and that many
cosmetics marketers and suppliers call New Jersey their home.
Mayen also noted that Port Newark is the third largest container
port in the US and that New Jersey shipped more than $700 million worth of products to Brazil last year.
By the Numbers
Dawn Thiel Glaser of Beraca noted that Brazil has the sixth largest
economy in the world, is No. 5 in terms of size ( 8. 5 million square
kilometers) and population (200.1 million in 2013) and that 60% of
Brazilians are age 29 or younger, all of which makes the country one
of the biggest and youngest on the planet. With $43 billion in sales,
Brazil is the No. 3 market for personal care products and is No. 1 in
fragrance and deodorant sales, No. 2 in bath and hair care products,
No. 3 in color cosmetics and No. 4 in skin care. In fact, one in every five
deodorants sold in the world is sold in Brazil, she told the audience.
No wonder then that Brazil represents 50% of the Latin American
CFT market, with Mexico a distant second. Perhaps most startling
though is that 96% of CFT sales are in mass markets.
During the past decade, Brazil’s economy has made great strides,
lifting half of the population into the middle class—a target audience
for personal care companies and their suppliers, according to Glaser.
“The middle class cares about their appearance and they are getting more sophisticated,” she explained.“After housing and food, CFT
represents the biggest portion of their budgets.”
Due to the vast size of the country and the variety of its people,
Brazil has several climates and seven out of the eight classified hair
types. Brazilians take their hair care seriously, too, with much of the
population washing their hair two times a day, due to the heat and
The uppers class accounts for 17% of
the population. This group is aspirational
and seeks premium brands. Yet, the great
strides made during the past decade have
come at price. Glaser pointed out that 70%
of Brazil’s forest is the Amazon, which has
been described as“the lungs of the world,”
as it absorbs 1.5 billion tons of carbon dioxide every year, representing 20% of global
oxygen production, according to some estimates. However, she warned that deforestation emits CO2 and ultimately, a tipping point will be reached when
the Amazon is emitting more carbon dioxide than it absorbs. Which is
why Beraca and other companies work with indigenous populations
to reduce the pace of deforestation.
“Sustainability will be key to Brazil’s success,” concluded Glaser.
“Beauty is a very superficial industry, but if we can do something
good it is a win/win for everyone.”
How to Win
The market is vast, so how can it be conquered by cosmetic companies?
By understanding the consumer, explained Alberto Keidl Kurebayashi,
advisory board president, Brazilian Cosmetology Association. He noted that Brazilians often keep five kinds of shampoo in their shower,
and they purchase products at retail, in franchise, through direct sales
and on the internet. But no matter what they buy or where they buy it,
Tom Branna • Editorial Director
Symposium co-chairs Marie Thadal and Steve Herman