World Consumer Ranking in 2006, losing only to Japan and the U.S.
Exports indicate a 20% boost, surpassing the international average and nudging US$ 500 million
The Brazilian Beauty Industry is closing 2006 with plenty of reasons to celebrate. According to data compiled by ABIHPEC (Brazilian Association of the Cosmetics, Toiletries and Fragrance -CT&F- Industry), projections point to annual gross sales totaling R$ 17.3 billion, up 12.3% over 2005, and about 1.4 million tons sold, representing a 7.6% swell in output volume.
Despite the unfavorable exchange rate, CT&F exports to 132 countries point to a 20% boost in 2006, nudging US$ 500 million. "We have doubled our foreign trade in only 3 years. The growth in our exports this year surpassed the international average, indicating that we have expanded our share of the world market," asserts João Carlos Basilio da Silva, President of ABIHPEC.
Imports are also riding high, expected to climb 35% to reach US$ 285.4 million.
Bronze Medal in 2006 – The 32.4% growth in CT&F consumption (in dollars) on the Brazilian market in 2005, versus an 8.2% gain in the global market, notched the country up to the fourth ranking position in the world, putting it ahead of traditional markets like Germany and England. "If our expected growth rate stays on track, we'll climb to third in the 2006 survey, surpassing even the French consumer market and losing only to Japan and the U.S.," explains Basilio.
Brazil consumed roughly US$ 13.8 billion (consumer price) in 2005, according to data from the Euromonitor Research Institute. Today, it is the 2nd largest consumer of deodorants and kids' products, and ranks 3rd in hair care products and in toiletries, 4th in oral care, 5th in bath and men's products, 7th in color cosmetics, 8th in sunscreens, 9th in skin care products, and 10th in depilatories.
To meet this demand, the beauty industry has been one of the sectors of the economy that has most employed female labor in the country. The job opportunities for beauty professionals like hairdressers, manicurists and beauticians, franchise sales clerks and sales reps, is approaching the three million mark.
According to information from CT&F companies, which represent about 60% of the market, direct jobs grew 5.8% in 2006, repeating the performance recorded in 2005, and higher than the growth in the employment rate posted for the economy.
The main activities performed by ABIHPEC in 2006 can be summed up as follows:
* Introduction of an on-line system informing about Risk Factor 1 Cosmetics (lesser risk), in partnership with ANVISA (Brazilian Sanitary Surveillance Agency), which streamlined the bureaucratic process and enabled the sector to become more expeditious and competitive.
* Participation in international trade shows – Cosmoprof Bologna (Italy), BeautyWorld Middle East (Arab Emirates) and Cosmoprof North America (USA) – and promotion of business rounds with U.S. buyers in Miami, with the support of APEX-Brasil (Trade and Investment Promotion Agency).
* Launching of a new site for the Association, with a totally different and more dynamic design, that provides information on several areas served by the sector. The page also offers a link to the new Brazilian Beauty site (www.brazilianbeauty.org.br), focusing on business, which displays the electronic catalogue, listing CT&F companies and identifying suppliers, and allows registration for events, etc.
* Promotion of the International Seminar on Sunscreens, in Brasilia, attended by members of ANVISA, ABDI (Brazilian Industrial Development Agency), Sebrae (Brazilian Support Service to Micro and Small Companies) and other governmental agencies, in which technical and public-health topics related to sunscreens were discussed.
* Promotion of the "Lend a Hand to the Future" Project, in partnership with the Bank of Brazil Foundation, for the collection and recycling of used product packaging in 5 cities of Santa Catarina – Blumenau, Florianópolis, Joinville, Lages and São Bento do Sul.
* Signing of a partnership with Sebrae and ABDI to provide technical and administrative support to improve the production chain of micro and small CT&F companies.
* Participation in the 9th Meeting of Latin American Sanitary Authorities, which brought together representatives from 19 countries, in Colombia, and which elected João Carlos Basilio da Silva as President of CASIC (Board of Associations for the Latin American Cosmetics Industry.
* Promoting the signing of a contract between ANVISA and CTFA (Cosmetic, Toiletry, and Fragrance Association), in the U.S. As a result of the partnership, the U.S. Association made available its database containing over 14 thousand ingredients used in personal care, toiletries and cosmetics.
* Creation of ITEHPEC, a technological institute aiming at bringing universities and research centers closer to the CT&F industry, to promote innovation and boost competitiveness of CT&F companies on the market.
* Participation in a world forum to discuss sunscreens, in Australia.
* Participation in the Cosmoprof Cosmética Trade Show, promoting the International Seminar titled "Strategies for Expansion: In Search of New Markets," and the Business Round attended by 22 buyers from 13 countries.
* Creation of the Innova Quality/Abihpec Award, in partnership with the Vanzolini foundation. Quality certificates were given to 12 suppliers from the sector, evaluated by their customers, and the award for best supplier.
* Promotion of the 2nd Technological Round, which brought together researchers and scientists from centers and universities nationwide to present the latest releases in skin cosmetics.
* Recipient of the Special Distinction Environmental Award conferred by the Brazil-Mexico Chamber of Commerce for the "Lend a Hand to the Future" Project.
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