September 12, 2017
Natura Helping to Make Brazil a Leading Fragrance Market
Cajamar, Brazil-based Natura and Avon are among the direct sellers helping to position Brazil as one of the world’s top fragrance markets. According to a recent Euromonitor survey, the country is the second largest fragrance market in value, trailing only the United States.
Brazilian fragrances are leading the Latin American market, accounting for over half of the total fragrance sales in the region. In 2016, Brazil had more than half (US$ 6.4 billion) of total sales in Latin America, which totaled US$ 11.2 billion, according to a Beauty and Personal Care survey by Euromonitor. In 2021, Euromonitor predicts that the Brazilian fragrance market will reach R$ 30.8 billion real (approximately US$ 9.6 billion) in sales revenue, exclusive of inflation.
The main fragrance maker in the country is Botica Comercial Farmacêutica, followed by Natura and Avon, the country’s two largest direct selling companies. Other direct selling brands include Jequiti Cosméticos and Mary Kay.
Natura, the cosmetics and personal care company that ranked No. 9 on this year’s Direct Selling News Global 100 list of the top direct selling companies in the world, revamped its Natura Ekos line last September. In February the company launched a new Natura Ekos fragrance, Flor da Manhã, a scent that aims to evoke the bouquet of flowers that blossom at dawn, using essential oils from the Amazon: pripioca, pataqueira and copaiba.
The company has also established new fragrance brands—Una and Luna—in recent years and has relaunched popular classics such as Kriska, Biografia and Natura Homem, a leading men’s fragrance. In the masstige market (“prestige for the masses”), Natura’s signature brand is Kaiak, inspired by the connection with nature, followed by the Humor line, which encourages customers to live a lighter life. The category with more attractive pricing contains mainly eau de colognes from brands such as Águas and Tododia, designed at prolonging the after-bath sensation.
Earlier this year, Euromonitor reported that the Brazilian fragrance market edged up 1.5 percent in 2016 to total US$ 5.75 billion, down on 2015’s growth of 6 percent but strong enough to retain its hold on second place. One of the keys to retaining its position is the mass consumption of fragrances in Brazil.
“Price plays a key role in the dominance of the mass segment in fragrances. It is the number one factor for consumers when buying a fragrance, followed by the scent and the brand name,” says Euromonitor, adding that the northeast of the country is the key region for mass fragrance, and the key region for growth potential. “According to trade sources, 65 percent of Brazilians use fragrances, while in the northeast this figure rises to around 90 percent. In the south, the figure falls to 40 percent.”