Page 60 - Anuário Abihpec

Anuário ABIHPEC 2016

Have you stop and think about how many different Entrepreneurship is alsoacharacteristic ofthe members
products of Cosmetics, Toiletries and Perfumary you of the CT&F supplying chain. One example of this is
use per day? Toothpaste, toothbrush, soap, shampoo, the growth of beauty salons in Brazil as a new business.
conditioner, deodorant, sunscreen, perfume and According to SEBRAE official data, there are another 600
moisturizer are just a few examples that are part of the thousand beauty salons installed in domestic territory.
Brazilian daily routine, which has the essential items for

health, Self-steem and well being. DISTRIBUTION CHANNELS

For this consumer, CT&F items are so relevant, that about

1,5% of the family budget is geared toward obtaining Acurrent characterisct ofCT&F companiesis the delivery
them, even in the face of the country's recession. The of their products through many distribution channels:
increases in the tax burden, the dollar rising and the franchising, direct Selling, pharmacies, supermarkets,
political crisis, which ended up influencing the loss of e-commerce, specialty and wholesale stores, "Today is
Brazil's position in the world consumption ranking, were forminga multimodalrnarket, which sen/es all industries,
not enough to reduce the stability of the CT&F industry, in all directions, " says Basilio.

which according to Euromonitor prediction, should Pharmacies have been highlighted as an important
resume the third place, with growth of 14.3% by 2020. channel and there are signs of closing 2016 with a
In 2015, the industry achieved "Ex»Factory" sales (net of representation of 30% in Brazil, according to the
sales taxes) of R$ 42.6 billion, retracting almost 9% for IMS Health Institute, which points out the increased
the first time in 23 years. commercialization of CT&F products in pharmacies and
In the year of 2016, the country undenNent a new drugstores. The Kantar Worldpanel Institute also shows
economic policy configuration generating a small a growing trend in,

improvement, and in the first semester the CT&F industry

achieved a 3% higher than the same period of the CATEGORIES

previous year, registering a cumulative value of about R$

21 billion, according to the ABIHPEC Market Data Panel. Brazil is one of the main leaders in many consumption
The ABIHPEC executive president, João Carlos Basilio, categories. According to Euromonitor, it holds the
by assessing the current national situation, finds the 2nd place in sunscreen, deodorant, man's products,
scenario positive for the industry, but with reservations. perfumes and depilatories; 3rd place in hair products,
"Our perspective is to have a 2016 closing by scoring children's and oral hygiene, 4th in bath products, 5th
a zero to zero. As in 2015 the economic indexes were place in makeup and 8th in skin care products.
negative, this means a good recovery, in a climate that In the case of sun products, the greater awareness of
still has much to happen, " he signals. the population regarding the risks of exposure of the
To face the challenges of the emergence of new global skin to ultraviolet rays was a preponderant factor for the
players and the consequent increase in competitiveness, strengthening of the sunscreen market.

the Brazilian CT&F industry seeks as a differential According to Mintel, 50% ofBrazilians from economically
investment in innovation and thus has been gaining active classes use sun protection with protection factor
space in the global market, resulting in products with above 30 and 54% of respondents use the product
sophisticated ingredients that meet the society's to avoid the risk of skin cancer, which reinforces the
demands. Currently it experts to 134 destination essentiality of the sector's items for maintaining the
countries, with Mercosur as the main consumer market health of the population.

and Argentina, the main trading partner. Through In 2016, other items, previously not so popular with
international business, revenues totaled US$ 798 million. consumers, have shown their importance to public
The industry is also notable for entrepreneurship, health such as insect repellents, which have become
employability and participation in the domestic economy allies in the prevention of tropical diseases Zika Virus,
- there are 2,618 CT&F companies in the countny Dengue and Chikungunya.

with authorization to operate by the National Health

Sun/eillance Agency (ANVISA). CURIOSITIES:

MAP OF CT&F COMPANIES IN BRAZIL 0 Brazil is the fourth largest global market and accounts

for 71% of world consumption.

The CT&Findustry is responsibleformorethan 5.7 millionjob - The CT&F industry is the first industrial sector that
opportunities split throughout its supplying chain, genemting invests more in advertising (January to June of 201 6).

R$ 36 billion in compensation. According to Basilio, the 0 The second industrial sector that most invests in
unemployment rate in the CT&F industry is lower than innovation.

that of the domestic industry, but it was not affected by the i Skin products is a market of almost R$ 11 billion.
unfavorable scenario of2015. "Unemploymentparameters in - 1 out of 6 deodorants sold in the world 1 is sold in
Brazilian industry reach 12% and in our industry, it does not Brazil.

reach 4%. We are the last to enter the crisis and the first to 0 In five years, sales of men's products grew 16% in Brazil.

58 ¡eave ¡rir! Says the ¡eader Ofthe Assodaüon_ (Sources Euromonitor, Kantar Ibope Media and Mimel)