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Brazil has overtaken the U.S. to become the world’s largest market for fragrances, according to a report recently released by Euromonitor International. While U.S. sales of fragrance stood at $5.3 billion, Brazilian sales rose 33% to $6 billion in 2010. Data from the Brazilian Association of the Cosmetic, Toiletry & Fragrance Industry (ABIHPEC) indicates that the fragrance market grew about 18% in 2010.
Besides the sharp growth in consumption, results were also impacted by the appreciation of the Brazilian real (R$) against the U.S. dollar.
“Fragrance sales in Brazil are concentrated primarily on mass market brands, which now account for 93% of revenue,” said Euromonitor analyst Marcel Motta, who noted the leading companies are Natura and O Boticário, which combined account for a market share of 60%.
Despite the sector’s positive performance, there is still a huge market yet to be conquered by fragrance brands. A survey conducted by O Boticário shows that only 61% of the Brazilian population wears perfumes on a regular basis. In other words, there is still a potential market of nearly 40% to be explored.
The Estée Lauder Companies partnered with direct sales retailer Jequiti to retail Lauder’s Unforgivable and Unforgivable Woman fragrances in Brazil. Although all raw materials are to be imported, both fragrances will be manufactured in Brazil by Lange Cosmetics.