Brazilian personal care industry grew to US$1.5B in 2022

14 Feb 2023 --- Brazil’s toiletries, perfumery and cosmetics sectors reportedly grew 9.4% – amounting to US$1.52 billion – between January to December 2022. The Brazilian Association of the Toiletries, Perfumery and Cosmetics Industry (ABIHPEC) shares that the trade balance was in surplus of US$35.5 million, with an increase of 206% compared to the surplus balance recorded in the same period of 2021 (US$11.6 million).

The three main items exported were hair products (23.7%), soaps (19.1%) and oral hygiene products (11.6%).

“Even with the challenges of recent years, the sector has identified opportunities to maintain exports, demonstrating resilience in relation to internal and external impacts that reduce the competitiveness of HPPC [toiletries, fragrance and cosmetics] products in the international market,” comments João Carlos Basílio, CEO at ABIHPEC.

“We can observe that the majority of exported goods grew in value while the volume exported fell. Internal factors, such as operating costs for manufacturing the sector’s goods and external influences, with regard to inputs, logistical issues and international inflation, impacted the production of goods to be exported,” he says.

Exports in the period reached a value of US$776.5 million, a growth of 10.9% compared to 2021 (US$700 million), ABIHPEC shares. In contrast, imports closed at US$741 million, representing an increase of 7.6%.

International trade
The top five destinations were Argentina (18.7%), Mexico (11.1%), Colombia (10.7%), Chile (10.1%) and Paraguay (6.6%).

The association also spotlights the US, Portugal, the UAE and the Netherlands as commercial partners with the “greatest growth value and volume in exports” for the year, with hair products as the top export category.

Hair care products were most exported to the US, Portugal, the UAE and the Netherlands.Basílio adds that in a challenging international scenario like the current one, the authorities must promote a more favorable environment for Brazilian foreign trade, seeking strategies to increase the competitiveness of national products.

“In the specific case of HPPC goods, this is essential for our sector to maintain a trade surplus in the coming years,” he says.

Basílio also highlights the importance of reducing internal and external obstacles. “The review of the Official Export Financing Policy, the reduction of logistical costs and greater integration of production chains are essential to guarantee the competitiveness of Brazilian companies.”

ABIHPEC shares that the sectoral trade balance for HPPC closed in surplus for 2022 for the third consecutive year since 2010.

Beauty industry outtakes
PersonalCareInsights recently delved into the impacts of COVID-19 pandemic across fiscal 2022 in the personal care sector, prolonging a challenging business environment. Other factors causing headwinds in the international market include rising energy costs, the Russia-Ukraine war, changes in consumption triggered by global inflation and the Chinese market’s slowdown.

Market uncertainties pertaining to inflation, disrupted supply chains and fluctuating demand for luxury purchases have pivoted beauty companies to shift gears in fiscal 2023. However, newly released annual results maintain a bullish outlook as industry’s hair and skincare titans have managed to keep ahead of sales predictions.

Moreover, cosmetics players under the French cosmetics association celebrated “record” international growth of 18.8% in one year. Newly released annual results revealed the sector managed to hit total exports of €19.2 billion (US$20.6 billion) in 2022.

Edited by Radhika Sikaria

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