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Report: Brazil's Fragrance Market Poised to Continue Rapid Growth

Posted: February 28, 2014

The Brazilian fragrances market, already the most valuable in the world, is set to continue growing quickly, helped by a broad consumer base, the experience-seeking behavior of consumers, and a young and increasingly affluent population, according to research firm Canadean.

High per capita volume consumption makes Brazil the most valuable market in the world, said Canadean. It estimates that by 2013 Brazil was already the most valuable fragrances market in the world, worth more than $6 billion. This is built on the back of high per capita consumption as Brazilians use, on average, three times more fragrances by volume than consumers in the United States, the next most valuable market, it said. 

According to the report, not only is consumption of fragrances already high, it is also set to grow quickly with both men and women using high volumes of fragrances, and often looking to treat themselves to new and novel experiences. Meanwhile, Brazil’s population is young and increasingly affluent.

These three pillars, a broad consumer base, experience-seeking consumers and a young affluent population, will be the basis of the market’s continued rapid growth, the report noted, adding that opportunities exist to target men and women with both mass and premium products.

Fragrances consumption in Brazil is broad, meaning manufacturers have a variety of consumer groups and price points they can target, Canadean said. For instance, it said men play a prominent role in the Brazilian fragrances market, consuming 48.7% of fragrances by volume. Furthermore, consumers in the poorest 50% of households consume almost as many fragrances as those in the richest 50% of households.

As a result, the market research firm has predicted there are opportunities for both mass and premium fragrances to succeed in the market. Canadean tracks the influence of 20 consumption motivations; when Brazilians come to select what fragrance to use, it said 25.5% of consumption by value is the result of consumers seeking to either affirm particular visions of femininity or masculinity, including the use fragrances to deliberately break gender stereotypes. Meanwhile consumers’ desire to experience new or novel scents are a key motivation behind the consumption of just under a quarter of all fragrances in Brazil by value, while the desire to treat oneself is also important. These motivations will drive future growth in the market, Canadean said, with Brazilians looking to indulge in new experiences; creating opportunities for new product launches that encourage consumers to treat themselves with novel scent combinations.

The report also noted that Brazil’s population is young and increasingly affluent. Almost 100 million people, half the total Brazilian population, are aged between 16 and 35. In addition to their large numbers, these consumers use fragrances more frequently than consumers in other age groups. Add in their growing spending power, with GDP per capita in Brazil growing by over $4,000 between 2007 and 2012, the report said, and young Brazilians will drive rapid growth in the market.

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