Brazil: ABIHPEC anticipates growth in sales of cosmetic products of 1.1% in 2020

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João Carlos Basilio, Executive President of ABIHPEC

For manufacturers of personal hygiene products, perfumes and cosmetics, the most critical months of the Covid-19 crisis in Brazil have passed. In any case, this is announced by João Carlos Basilio, executive president of ABIHPEC, who has just published the sales figures for the sector from January to May 2020.

The “Covid-19 basket”

Compared to the same period last year, the Brazilian market grew 0.6% in turnover and 2.8% in volume. Although modest, this growth is very good news for ABIHPEC. “For our sector, it is a very positive asset to stay in the green,“said João Carlos Basilio.”Much of this result reflects the significant increase in purchases of products that make up what is known as the “COVID-19 shopping cart,” such as hand sanitizers and liquid or solid soaps. This product group contributed 21% of the total market growth (in value, based on ex-factory prices) in the first five months of the year,“he explained.

Hand disinfection

Alcohol-based hand sanitizers are the fastest growing products. Due to the lack of products in the market, many cosmetics companies reacted quickly and adapted their production facilities to meet demand. Others, who already offered these items, stepped up production. As a result, more than 6,300 tonnes have already been sold. An increase of 3127% (volume / tonne) as sales did not exceed 200 tonnes during the same period in 2019.

Liquid soap, another key product for hand hygiene, recorded a sales increase of 18.9% (ex-factory value).

Brazilians are used to taking care of themselves and their personal hygiene. In the midst of the pandemic, we have noticed several changes in purchasing habits and preferences between different segments of the industry,», Explains Basilio. Sales of shampoos and conditioners, for example, increased by 2.9% and 9.2% respectively (ex-works value). “Figures like this make us think that consumers are probably taking more baths and washing their hair more often,“declared the president of ABIHPEC.

Promotional prices

the skin care category, especially for adult skin, also met with significant success in the first five months of the year. Sales of anti-wrinkle and anti-aging cosmetic products increased by 13.4% over the period.

Additionally, despite social distancing measures and the use of face masks, sales of lipstick increased by 12% in volume. “We believe that despite the context, people continued to dress and apply makeup at home, especially to participate in virtual social events, such as virtual happy hours and professional video meetings,», Adds João Carlos Basilio.

For the president of ABIHPEC, in addition to behavioral changes, good industry figures can also be the consequence of the price reductions made by cosmetic manufacturers in recent months. “This shows how quickly the sector was able to react. By offering products at lower prices, the industry has been able to adapt its offer to the new reality. The lower prices have helped create purchasing opportunities for Brazilians who have not had to give up consuming our products.

According to João Carlos Basilio, ABIHPEC forecasts growth of 1.1% in 2020 for the entire perfumes, cosmetics and hygiene sector in Brazil. “We are very careful when we talk about recovery. The pace may be slower, because the economic context is still quite complex,“, He underlined.

However, according to the Executive Chairman of ABIHPEC, the business world has welcomed the results of this first part of the year with great enthusiasm. “For many of them, June was a very positive month, with demand picking up, apparently continuing the process of sector recovery already seen in May’s figures,“he concluded.

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