Page 41 - ABIHPEC ANUARIO 2018

2018 YEARBOOK SCENARIOS 41

munication most and the 2nd. that invests in on products. “High taxation impairs the population's
innovation most. access to essential items for maintaining health and
well-being� adds Basilio.
Survey respondents also understood that
CT&F-enabled care have a great say on per- There is a continuous industry-wide effort
sonal and professional relationships - and that to overcome the recession that hit the country.
lack of access to products can harm individ- However, the sector is still far from the figures
uals. “Have you ever imagined that anyone could already registered, since the results of 2017 were
lose their job for not using deodorants? Imagine how not enough to neutralize the losses. “Although the
that person might feel in a situation like this�, ex- recovery bias is confirmed, we believe we have a long
emplified a participant from Porto Alegre (RS). way to go before reaching a positive level, as in previous
years � explains the Association's chief executive.
This public has been well informed about
the tax increases that these products have been CONSUMER MARKET
undergoing: 73.3% have been able to say that the
tax burden has grown in the last two years. And As a reflection of this scenario, which prevent-
66.7% think that there is no room for new rises. ed the Brazilian CT&F sector from maintain-
ing its leadership in important categories (a
“The outcome of the research is another indica-
tion of the relevance of CT&F products to Brazil-
ians,� said Basilio.

DOMESTIC MARKET SECTOR X ECONOMY

The Brazilian Gross Domestic Product (GDP) ANNUAL VARIATION (%) DEFLATED
grew by 1.0% in 2017 compared to 2016, in the SECTOR
first high after two consecutive years of retrac- GDP GENERAL
tion*. Data from IBGE (Brazilian Institute of Ge- INDUSTRY
ography and Statistics) indicate that in 2017 GDP
was R$ 6.6 trillion. Specifically, the Brazilian in- 2008 5,2 3,1 5,5
dustry was practically stagnant in 2017 (0.2%),
after three consecutive years of decline. The last 2009 -0,3 -7,4 9,6
time the industry showed progress in GDP was
in 2013, when it grew by 1.2%. 2010 7,5 10,5 10,5

In 2017, the CT&F sector achieved a slight 2011 2,7 0,4 6,3
growth of former-factory 2.75% - net of sales tax-
es - although superior to the economy, it was 2012 0,9 -2,5 8,8
not enough to neutralize the losses of the 2015-
2016 biennium. 2013 2,3 1,2 5,3

In the two years of strong recession, when 2014 0,1 -1,2 7,0
the Brazilian GDP declined 7%, the industry had
a strong drop in consumption due to the eco- 2015 -3,8 -8,3 -9,3
nomic crisis, aggravated by the heavy tax burden
2016 -3,6 -6,6 -6,3

2017 1,0 0,2 2,8

AVERAGE OF

THE LAST 10 1,1 -1,2 3,8

YEARS

COMPOUND

SOURCE: IBGE- BANCO CENTRAL, ABIHPEC/ DEFLATOR: IPC FIPE TOILETRIES AND BEAUTY