Brazilian Beauty and Personal Care industry closes semester in blue and stays confident
Abihpec - Brazilian Association of the Personal Hygiene, Perfumery and Cosmetics Industry, announced today that the Beauty, Perfumery and Toiletries sector presented a 0.8% increase in sales (ex-factory sales) in the first half of 2020, when compared to the same period. 2019, according to its Data Panel, which includes a Market Simulator.
The highlight is for the month of June, which registered a 4.9% increase in sales value (ex-factory). Much of this growth was driven by the Tissue segment and products used during the pandemic, such as alcohol gel, soaps (liquid and bar), toilet paper, disposable tissues and multipurpose paper towels. These products together grew 12.8% in June and 19.7% in the first half of 2020, compared to the same period last year, both in terms of sales value (ex-factory).
"Given the current moment of confrontation with the coronavirus and the need to reinforce hygiene habits, the essentiality of these products has become even clearer, and consumers have inserted these items in their daily lives, even more strongly", says João Carlos Basilio, chief executive of ABIHPEC.
Another factor of the good performance of the month of June, says João Carlos Basílio, " is due to the Perfumery segment, with a 20.7% increase in sales value (ex-factory), due to strong retail promotions for Valentine's Day. Among the products directly related to the fight against the coronavirus, the highlight is alcohol gel, which from January to June this year had a sales growth of 2,066.6%."
Items in the Tissue segment showed 21.9% (ex-factory sales value) in the division. Multipurpose paper towels grew by 39.5%, tissues by 75% and toilet paper by 20.5%, all in sales figures (ex-factory). In the personal hygiene segment, the highlight was liquid soap, which grew by 18.2% (ex-factory sales).
The 0.8% growth in sales in the sector, between January and June this year, reflects the changes in consumption that occurred in the time interval in which the population already complied with the guidelines for social isolation and also, the most critical period in the business environment. to date, between March and April. In view of such difficulties faced in the period, the consolidated increase in this 1st semester is seen by the sector in a positive way.
Despite the uncertainties, companies in the HPPC sector expect a better result in the second half of this year and estimate a 1.1% growth for the end of 2020, data obtained in the ABIHPEC Market Simulator, following a more restrained pace of recovery , given the challenging scenario, where companies have been constantly reviewing their plans. Many companies are taking a cautiously optimistic view of consumption in Brazil and expect sales of HPPC products to follow the general trend with growth rates for some products, especially hygiene products to deal with the pandemic. ".
In 2019, the HPPC sector recorded a growth of 4.2%, reaching an ex-factory sales value of R ? 55.7 billion, a positive result even in the midst of the economic recession and high taxation.
Recently the CNI - National Confederation of Industry - published the data of the Industrial Entrepreneur Confidence Index (ICEI) for the month of July. The data show an increase in the confidence index of industrial entrepreneurs in the segment of the manufacturing industry as a whole and, in the sectorial ranking, it presents the HPPC sector in first place, with an index of 56.7 points.
When observing the Brazilian Institute of Geography and Statistics - IBGE data on the Performance of Economic Activity during the pandemic for the Industrial Production, the monthly variation in 2020 (seasonally adjusted data), the comparison of June versus March, shows a decrease of -13.5%. When the Industrial Sector Performance data was analyzed in the same period, what can be observed for the manufacture of soaps, detergents, cleaning products, cosmetics, perfumery and personal hygiene products, accumulated a drop result of -0.7 %, therefore, a much less significant drop than that observed in industrial production as a whole, which, again, reinforces the signs of recovery in the HPPC sector.
"This potential could be better used, if we had a more favorable environment for business, and incentives for expanding production. By generating job opportunities, through the different channels of operation, the sector provides a positive multiplier effect; moving the economy , promoting entrepreneurship and competitiveness, encouraging professionalization and generating professional self-esteem ", reinforces Basilio da Silva.