Escrevi esta coluna para a edição de junho da revista americana Happi, Household and Personal Products Industry:
Fragrance is big business in Latin America, especially in Brazil, which is the No. 1 market for scents in the world. With annual sales of about $7 billion, Brazil accounts for more than 15% of global fragrance sales. In Latin America, Brazil represents 56% by value; followed by Argentina and Mexico. In the past five years, Brazilian fragrance sales rose 67.8% while Latin American sales increased 58.5%, according to Euromonitor. The strong growth was supported by many factors, including rising disposable income levels, advertising campaigns during seasonal events and the shift in consumption from low-concentration mass fragrances (widely used in the northeast region in Brazil) to mid-price or better quality fragrances.
Scent is embedded in Brazilian culture, especially in the north and northeast regions, where consumers may use fragrance as much as three times a day. In these regions, the income of people has increased thanks to the government’s social programs, tourism and industrial expansion. The northeast is the most important market for mass fragrances, due to the emerging middle class. In fact, 89% of Brazilians apply fragrance, according to ABIHPEC (Brazilian Association of the Cosmetic, Toiletry and Fragrance Industry. Regionally, the north/northeast has the highest penetration with 95%. Besides that, 60% of Brazilians use fragrances, while in the northeast the percentage is nearly 90%. In the south, however, the percentage drops to 40%.
The Biggest Players
O Boticário and Natura lead the way in Brazil. Both rely on new products and advertising campaigns, mainly on commemorative dates, to promote their scents. In 2013, O Boticário reached the leadership in Brazilian market of perfumery, with 28.8% market share while Natura has 27.7% and Avon Brazil has 8.4%. In the past year, Boticário’s sales grew 10% and reached $3.3 billion, through 3,650 stores in more than 1,700 cities. At present, the company offers 100 fragrances, including top-sellers such as Linda, Lily, Floratta, Egeo, Malbec, Quasar and Zaad e Arbo. O Boticário launches, on average, 20 fragrances a year, including line items and limited editions. In Latin America, O Boticário has 10 stores in Venezuela and four in Paraguay.