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Beauty Sales Post Greatest Growth in Volume Terms in Five Years
By: Fernanda Bonifacio
Posted: March 2, 2012, from the March 2012 issue of GCI Magazine.
page 2 of 4
The boiler house will utilize sugarcane ethanol as fuel, but it will allow natural gas to be used in case of increased ethanol prices or fuel shortages. “Sugarcane ethanol is a clean, efficient energy source, which has a great growth potential in Brazil,” said Quinn. “L’Oréal’s growth is closely linked to sustainability matters, which is not only important from the socio-environmental point of view but also from an economic standpoint.”
Competition Increases Toothpaste Sales
Toothpaste sales in Brazil grew 2.9% in volume terms and 1.7% in value terms, according to data from Nielsen (January–October 2011). Brazil is the world’s third largest toothpaste market, with a share of 7.4% compared to 12.1% in the U.S. and 10% in China. Toothpaste is the product with the highest penetration rate in Brazilian households (94%), and its average price fell 1.2% in 2011 (discounted for inflation).
In 2010, Colgate-Palmolive was the absolute market leader, with a 69% share, followed by Unilever (19%) and P&G (5%). Two years after its launch, P&G’s Oral-B toothpaste sparked the market and intensified competition for customers. “Before the entry of P&G in the segment, promotions were less common,” said Nielsen market analyst Arthur Oliveira. “Today, they are virtually mandatory for any player in the oral care market.”
Before October 2011, 17% of toothpastes purchased in Brazil were part of a promotional package according to Nielsen data. Market share data for 2011 hasn’t been released yet, but P&G claims to have grown 195% in value terms January–November 2011, compared to the same period of 2010.
Unilever Invests R$500 Million; Launches Hair Care Products
Aiming to attract more clients in the hair care market, Unilever Brasil announced the launch of 80 new products at an investment of R$500 million, the largest in the history of the company toward the hair care segment.
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