Also according to the Abihpec, some factors may explain the good result for the sector. They are: greater female participation in the labor market, constant releases of products and use of state-of-the-art technology by personal hygiene, perfumery and cosmetics industries, which causes greater production and consequently sale of products at more competitive prices.

And Brazil, once again, is in the lead: it is the third cosmetics industry market in the world, losing only to Japan and the United States. Within the sector, one line is gaining strength: that of raw materials for natural and organic products.

A forecast by the Organic Monitor shows that consumption of these products is currently 4%, but in 2012 it may reach 10%.

According to figures by the Abihpec, one of the foreign markets the sector is going to continue betting on is the Arab. In early June, the organization participated once again in the Beautyworld Middle East, a cosmetics fair in Dubai, in the United Arab Emirates.

In 2008, the total value of sales of beauty products in the Middle East exceeded US$ 2 billion. In the Emirates alone, the beauty and spa market exceeds US$ 600 million.

Anba

The figures were disclosed by the Abihpec, which estimates that  sector exports should end the year at US$ 650 million, against US$ 450 million in imports. A press statement disclosed by the organization shows that the personal hygiene, perfumery and cosmetics product sector is the only one in the chemical complex (which includes cleaning product, pharmaceutical, paint and fertilizer industries, among others) to present a surplus.

According to the president at Abihpec, João Carlos Basí­lio, sector exports still have space for growth. The president of the organization also stated that this is a fragile moment for the economies of North America and Europe, which could help increase the competitiveness of Brazilian companies on the international market.

Despite the crisis, the sector has not yet noticed negative consequences, as the companies do not depend on easy credit for consumers to buy personal hygiene, perfumery and cosmetics products. "Crisis and opportunity are two sides of the same coin," said Basí­lio, in an Abihpec press statement.

One of the markets that the sector is going to continue betting on in 2009 is the Arab market. The organization should participate once more in the Beautyworld Middle East fair, in the cosmetics sector, to take place in Dubai, in the United Arab Emirates, in June.

According to figures disclosed on the Abihpec site, the total value of sales of beauty products in the Middle East in 2007 reached US$ 2.1 billion. In the United Arab Emirates alone, the beauty and spa market should exceed US$ 600 million in 2009.

Anba

According to da Silva, this growth is due to the development of traditional and more important markets for sector exports – as is the case with countries in Latin America – and also to the access to new markets, like the countries of the Middle East.

"Recently, in Dubai, we had a result that was much higher than expected. The business estimate was close to that of Bologna, the largest cosmetics fair in the world," pointed out the Abihpec president. "To some Brazilian companies, which invested heavily in sales to the region, the Arab countries are responsible for 60% of exports," he said.

Cosmetics fair Beautyworld Middle East, promoted between May 18 and 20, in Dubai, in the United Arab Emirates, generated US$ 680,000 for the 15 Brazilian companies participating, with business possibilities of US$ 8 million in the 12 following months. In the 2008 edition, the national makers of cosmetics received around 600 visits from all around the world.

And there are many people buying cosmetics all around Brazil. The third main global market for cosmetics, perfumery and personal hygiene, in 2007, Brazil consumed around 19.6 billion Brazilian reais (US$ 10.6 billion), growth of 12% over the previous year.

For this year, sector expectations are to reach revenues of 22 billion reais (US$ 12 billion). "This year we should grow around 8.7%. A new tax implemented in February this year has compromised the sector performance, which had been growing on average 10.9% for the last 12 years," pointed out the Abihpec president.

Basí­lio da Silva also spoke about the International Week of Beauty Industry Business, which started on Saturday and should present a special program with several activities turned to the generation of business between participants in different sectors of the cosmetics industry, up to the 30th.

The event includes the International Beauty Trade Fair – Cosmetica, the 1st Scientific Congress of Cosmetology and Aesthetics, RASA (the Meeting of Sanitary Authorities of the Americas in the Hygiene, Perfumery and Cosmetics Sectors), a Buyer Project and an International Business Roundtable, promoting the travel to Brazil of 15 international importers and distributors, who will have an opportunity to talk to Brazilian producers about personal hygiene, perfumery and cosmetics products.

In its 18th edition, the Cosmetica should bring together 200 exhibitors representing over 400 brands and presenting around 2,000 new releases among 5,000 products shown in an area of 35,000 square meters. The organizers hope to receive 30,000 visitors, including 6,000 from other countries.

Among the companies confirmed are L'Oreal, Unilever, Nivea, Farmaervas, Vult, Max, Love, Sina Cosméticos, Depirol, Santa Clara and Kimberly Clark, says Ricardo Matrone, the manager of the event, which starts being promoted by Reed Exhibitions Alcântara Machado in this edition.

"We want to offer an environment that is appropriate to buyers and exhibitors, whose objective is to close deals, opening new market possibilities. For this reason, we are focusing on an audience that is highly qualified, visiting the fair with the purpose of buying items, learning about new products or growing professionally," added Eduardo Sanovicz, the fair director at Reed Exhibitions Alcântara Machado.

The Brazilian cosmetics and perfumery industry, according to Basí­lio da Silva, should invest US$ 600 million in improvements. "Over the last three or four years, the sector has been growing constantly. Investment should result in an average growth of 8% in production," said the Abihpec president.

Service

Cosmetica 2008
From September 27 to 30
Time: 10 to 8 pm
Site: Anhembi Exhibition Pavilion
Web page: www.cosmeticaexpo.com.br

Business Roundtables with foreign buyers
Date: September 25th, from 9:00 am to 6:00 pm
Site: World Trade center SP
Date: September 26th, from 9:00 am to 6:00 pm
Site: Hotel Intercontinental

During that period, the growth rate of companies in the cosmetics and personal hygiene products sector averaged at 10.9%, whereas the GDP and the industry as a whole grew 2.8%, according to data supplied by the Brazilian Institute for Geography and Statistics (IBGE), the Central Bank of Brazil and the Brazilian Association of Toiletries, Perfumes & Cosmetics Industries (Abihpec).

The reasons for the market expansion are easy to understand. First of all, the Brazilian people is regarded as one of those most concerned with vanity in the world, therefore they care very much about their personal image.

Secondly, the virtuous cycle of the national economy and the better distribution of income in the country, which took place in recent years, are leading more people to consume shampoos, hair lotions and face creams, deodorants, toothbrushes, among other products in the sector.

According to data from the survey 2007 Overview of the Personal Hygiene, Perfumery and Cosmetics Sector, conducted by the Abihpec, the sector is comprised of 1,596 companies, of which only 15 are large-sized or post annual net revenues above 100 million reais (US$ 63.2 billion). Micro- and small-sized businesses are the majority in the cosmetics and personal hygiene industry.

In the Brazilian balance of trade, the cosmetics and personal hygiene products sector had an accumulated growth of 165% in exports from 2003 to 2007, according to the Abihpec. Within that period, imports grew 145%. Ever since 2002, the sector has been showing surplus results.

In 2007, the surplus was US$ 164 million, decrease of 15.6% compared with 2006, as a consequence of the expansion of imports and the appreciation of the real (Brazilian currency).

In 2004, Brazil occupied the sixth position in the global cosmetics sector ranking, as it answered to 4.2% of global consumption. The country climbed to the third position in 2006, with a 6.7% share of the global market. Brazil's cosmetic toiletry market is now behind only that of the US and Japan, and it has overtaken France for the third place.

Total revenues posted by the ten leading consumer countries of products by the industry totaled US$ 177 billion, the equivalent to 65% of total consumption worldwide, according to the Euromonitor 2006 survey.

Sebrae

The increase in global demand for natural products that respect the
environment have motivated many companies to invest in the production of organic
cosmetics. Great brands, like the French L’Oréal and L’Occitanne and the British
Lush are taking concrete steps in this direction.

They are all launching new products without substances derived from oil or synthetic chemicals and chemicals of animal origin.

Recently, Stella McCartney, the daughter of former Beatle Paul McCartney, released the Care line, in association with Sephora, one of the most important perfumery chains in the world in the area of certified organic and natural cosmetics.

In Brazil, some makers have already noticed this tendency and have taken the lead. Although still shy – the first certification was only approved three years ago – specialists believe this movement will progress rapidly, repeating the phenomenon that took place overseas, in markets that are more mature in the offer of organic cosmetics, like Europe and the United States.

Many national companies already use certified natural and organic ingredients in their formulas, but, according to the IBD (Instituto Biodinâmico – Biodynamics Institute), just four brands are certified as producers of organic cosmetics by the organization: Reserva Folio, in the city of Nova Friburgo, in Rio de Janeiro (SE Brazil), Terrapi, from Bahia (Northeast) and Magia dos Aromas, from Botucatu, and Bioessência Produtos Naturais, from Barra Bonita, both cities in São Paulo state (Southeast Brazil).

One of the strong attraction factors of organics is ecologically correct production. The producers publicly accept the engagement of not testing products on animals or using species of fruit or flowers that are on the verge of extinction. People who seek organic cosmetics also seek greater quality of life.

“Natural products are beneficial to skin health, as everything that is used on the body is absorbed into the bloodstream. Those who make this option are generally people who are greatly attuned to their bodies and to the environment,” stated Simone Valladares, the owner of Reserva Folio. “We were the first Brazilian cosmetics manufacturers to be certified by IBD,” she explained.

According to Simone, Reserva Folio uses 100% natural raw materials, mainly originating from Brazilian biodiversity like Brazil nuts, andiroba, cupuassu and babassu and always from projects that are socially and environmentally responsible.

The group includes suppliers like the Association in the Settlement Areas of the State of Maranhão (Assema) and other certified projects. “The company has a philosophy of adding product quality to conscience in the productive chain,” she said.

According to the businesswoman, the brand’s formulas use Brazilian vegetable oils and butters, rich in anti-oxidants, vitamins and minerals. Apart from that, the scenting and conservation is made based on natural essence oils. “There is no use of substances derived from oil, nor products of synthetic or animal origin,” she explained.

Reserva Folio also developed formulas of organic soaps based on certified honey and propolis. “Products coming from bees have been greatly appreciated since early times. This is because honey, royal jelly, pollen and propolis are all beneficial to the health and to human well-being,” pointed out the businesswoman.

Exclusive Space

Biofach Latin America 2007, which took place between October 16 and 18, in São Paulo, had a space exclusively dedicated to organic cosmetics. Chemical engineer Geysa Belém, the owner of Arte dos Aromas, based in the city of Diadema, made use of the opportunity to launch a special line of natural body-hydrating butter with organic ingredients and scented oils from the Amazon.

Among them Brazil nuts, cupuassu, buriti palm and andiroba. “Our products are free of parabens and do not contain mineral oils, artificial pigments and ingredients of animal origin,” explained Geysa.

According to the entrepreneur, the growing demand and the concept of working with ecologically correct products caused her entry into the organic cosmetic market.

“I have been working with organic inputs since 2004. This year I started using just certified ingredients and I am awaiting the brand certification process to start exports,” said Geysa. France and Germany are the countries that post the greatest potential, in the businesswoman’s evaluation.

Moisturizers, bath and massage oils, clay for facial use and bath salts by Arte dos Aromas are traded in natural product shops, mainly in the south and southeast of Brazil. Next year the target is to expand to the north and northeast of the country.

To add value to the products, the company sets up kits with baskets and sieves made by riverside communities in the Amazon, and also add gourds with texts that recall the culture of the Marajoara, Kayapó, Xingu and Assurini native tribes.

Another producer from São Paulo, Phytophilo, had a stand at the Biofach to announce the pre-launch of the Phytophilo Organics line. The line, to be 100% organic, should arrive on the market in December. According to Adriane Falcão, the sales supervisor, the new line includes body treatment like liquid soap, bath salts, bath foam and moisturizing cream. Hair care includes shampoo, conditioner and hair treatment.

According to Adriane, all the organic components are certified and the formulas do not contain lauryl and sodium, chemical substances found in all traditional cosmetics and that may cause allergies. “They (lauryl and sodium) are the hardest ingredients to replace for natural ingredients. After great research, we managed to find the natural formula to replace the function of these chemicals,” she guarantees.

On the domestic market the products are traded in São Paulo, Rio de Janeiro, Bahia, Espírito Santo, Pará, Maranhão and Paraná. The other company lines have been exported to Kuwait, Portugal and England for around five months. “As soon as the company receives the organic certificate for the new line we will be able to start foreign sales,” she says.

Precious Amazon

Concerns with environmental defense and with the generation of consumer awareness for the use of natural and organic products starts with the president of Surya Brasil, Clélia Angelon, who always had great affinity with a lifestyle engaged with nature.

“Developing organic cosmetics had been part of our plans for years. This is an evolution of the company’s thought pattern,” stated Clélia.

According to her, the Amazônia Preciosa organic line, certified by Ecocert in April this year, was initially launched as a natural line, and took almost one year to be developed. But not only the product is organic.

“The concept and the package are too. The Amazônia Preciosa pots are biodegradable. It is the only package of the sort in Brazil, and we won the Embanews Highlight of the Year award,” she says.

The organic line includes hair care – shampoo, conditioner and mask – and facial care – moisturizer, clay mask and facial tonic. What stands out the most is the clay mask package, made out of wood lignin. When disposed of, it degenerates in up to eight months, without polluting the environment. The rest of the organic line is made with 100% recyclable amber PET to protect the product from the effects of light.

Surya also recently launched an organic antiseptic hand gel. The product should please both the domestic and foreign market. “What happens is that the foreign market already has a distribution network and a demand for organic products, so it is easier to sell to American and European clients right from the start. In Brazil we are still establishing this clientele, but we are very enthusiastic. We participated in Biofach Latin America in October and have generated great interest,” she said.

In Clélia’s opinion, the global tendency is for cosmetics to move towards natural and organic products. “We participated in Biofach Latin America, and also in the fairs in the United States, Japan and Nuremberg (Germany), and have seen how this segment is growing strongly,” she explained.

“In Nuremberg, next year, the cosmetics sector is going to have a separate fair from the Biofach, called Vivaness. Now, in the Brazilian market, consumers are getting prepared, and we are proud of taking part in this process,” she added.

The products made by Surya Brasil, which is specialized in the production of cosmetics based on plants and herbs from the Amazon and India, have already broken out of the country borders. Apart from the head office in São Paulo, the company also has offices in the United States and India and exports to countries like Saudi Arabia, Lebanon, France, Belgium, Japan, the United States, Russia, Greece, Portugal, Chile and Uruguay.

Forestry Project

The Forestry School is a project developed by Surya Solidária (Surya Solidarity), a Surya Brazil unit dedicated to actions and projects turned to the environment, education and social integration. Promoted in Manaus, in the state of Amazonas (northern Brazil), the objective is to train people to work as forestry identifiers and foresters, whose work in locating and collecting plants.

“The work started one year ago. They are six-monthly courses and include around 30 students per group. It is a project that changes according to the needs of those participating. It may even become a cooperative. The idea is to help the natives support themselves from the forest, and not investing in soy or cattle, destroying the habitat in the region,” explained Surya president Clélia Angelon.

According to her, the foresters currently in activity know the forest very well, but what they lack is scientific knowledge for botanical classification of the thousands of existing plants. “The students trained are capable of working with companies that develop research, or as ecological guides in the collection of plants, without losses to natural resources,” she explained.

The Forestry Project is developed in partnership with the Botanical Garden of Manaus, which offered its installations and made available the edges of the Ducke Biological Reservation for promotion of the project.

Natural Magic

Cupuassu, buriti, andiroba, rosemary, lavender, marigold, lemon, orange, geranium and roses are some of the ingredients used by Magia dos Aromas, whose mission is to “research, develop and produce organic cosmetics”.

Having been certified by the Biodynamic Institute (IBD) a year and a half ago, the factory in the city of Botucatu, in the interior of São Paulo, produces lotions and moisturizing cream, soap, moisturizing oil, repellent and body deodorant.

“Our family had a manipulation chemist and we started noticing that many people complained of allergies caused by cosmetics with synthetic products. They also found it had to find natural formulas. That was what caused us to invest in the organic cosmetic factory,” explained Marcos Caram, a grandson of Syrians and Lebanese and one of the partners at Magia dos Aromas.

The small factory has seven employees and the raw material is found in several Brazilian states. “A significant share of the products come from the south, north and northeast of the Amazon,” stated Caram. According to him, one of the main products made by the company is scented oil used to scent environments and for massage, after being diluted in carrier oils.

The domestic market, according to Caram, has already accepted organic cosmetics made by Magia dos Aromas, which intends to increase its production capacity in the near future. “We already have distributors in São Paulo and in Rio de Janeiro (SE Brazil) and chemists in Rio Grande do Sul (S) and Goiás (MW), and we hope to be selling all over Brazil in coming months,” stated Caram.

Talks with the foreign market have also generated their first results in 2007. “We received several contacts from countries in Europe. We had already sent samples and are now awaiting the closing of the first orders,” explained the excited businessman.

Contacts

Reserva Folio
Telephone: (+55 22) 2522.1492
Site: www.reservafolio.com.br
E-mail: commercial@reservafolio.com.br

Arte dos Aromas
Telephone: (+55 11) 4043.1820
Site: artedosaromas.com.br
E-mail: artedosaromas@uol.com.br

Phytophilo
Telephone: (+55 11) 5642.1162
Site: www.phytophilo.com.br
E-mail: commercial@veryimportant.com.br

Surya
Telephone: (+55 11) 3732.3417
Site: www.suryacosmetics.com

Magia dos Aromas
Telephone: (+55 14) 3813.8431
E-mail: magiadosaromas@uol.com.br
Site: www.magiadosaromas.com.br

Anba – www.anba.com.br

What elevated Brazil to the third position in the world ranking was an increase in the consumption of sector products on the Brazilian market, which represented growth of 26% in dollars terms, against an estimated growth of 1.2% on the global market.

In 2005, Brazil had already overtaken traditional markets, like Germany and England. Now, with sales of US$ 18.2 billion, the country has also overtaken the French market, losing only to the United States and Japan, which are respectively in the first and second places.

In the last five years, cosmetics sector exports posted accumulated growth of 138%, reaching US$ 484.4 million. In 2006, the appreciation of the Brazilian real against the dollar caused an increase in sector imports, which rose 39%, when compared to the previous year, reaching US$ 294.5 million.

Just last June, Brazilian experts were saying that Brazil would take the third position in the world as top cosmetic consumer by mid 2008. The Euromonitor announcement took them by surprise.

The success of personal hygiene products, perfume and makeup among Brazilians is great. There is a fever on the market, especially in the case of women, and it is generating significant business for entrepreneurs in the sector.

Figures for Brazil confirm the big growth. Data by the Brazilian Association of Toiletries, Perfumes & Cosmetics Industries (Abihpec) show that the sector presented mean growth, not considering inflation, of 10.7% between 2000 and 2005.

Net revenues rose from US$ 3.3 billion in 2000 to US$ 6.8 billion in 2005.

To the executive director of the Abihpec, Manoel Teixeira Simões, the beauty industry sector bets on an increase in competitive capacity and on sustainable development for companies.

"It is a very dynamic market, with companies that have great potential. The proposal is to create measures for micro and small companies to be able to produce according to good manufacturing practices, to become innovative and creative and, thus, to become large companies in future," he said.

According to the study, the growing participation of women in the labor market, the increase of productivity due to the use of state of the art technology, constant releases of new products in the market and increases in the life expectancy of women are among the main factors contributing to the growth of the sector.

According to the study, in Brazil there were last year 1,367 companies operating in the personal hygiene, perfumery and cosmetics sector. Of these, 15 large companies with net revenues of R$ 100 million (US$ 44 million), represent 71.7% of total revenues. Of all companies in the country, 98.8% are micro, small and medium companies.

The chain of franchises already has two stores in the Arab country, in Riyadh and Dammam, a showroom in Cairo, Egypt, as well as 105 points of sale in Saudi Arabia and 20 in the United Arab Emirates.

The expansion project for the brand in the Arab market foresees the installation of nine stores. According to the manager, yet this year, probably in October, the fourth store will be installed in Dubai, in the United Arab Emirates.

The other ones haven’t yet a date and place established. "These exclusive stores are part of the continuity process for brand consolidation in the Arab market," stated Roberto Garcia Neves, manager for the International area at the company.

"First we entered the channels that are traditional in toiletry, the points of sale. Before opening a store we experimented the local market for approximately two years. As of the moment we had market feasibility, we established a partnership with a local investor," explains the manager. In Saudi Arabia, Nahara Trading is the company’s partner.

"The Gulf is the market with greatest per capita consumption of fragrances. That’s why it presents itself as a market with excellent growth potential for the cosmetics sector," he remarked.

Winning the region happened after a lot of market research. "We carried out researches on the smelling senses in all potential markets. It wasn’t different with the Arab market," he assures.

The Arabs consume principally perfumes, men’s and women’s, and the make-up line from O Boticário. "As Brazilian make-up was developed from the various ethnic groups existing in Brazil, it is adequate for all markets. We have all chances of pleasing the Arab women who really care for their appearance," celebrates Neves.

According to the manager, the export volume is still small, representing 3% of the company’s annual revenues, which in 2005 were 2 billion reais (US$ 911 million), but it is part of a long-term strategy to introduce an unknown brand in such a competitive market, used to great international brands.

"O Boticário wants to internationalize more and more. We are already in Europe, the United States and the Middle East," he highlights. The company’s internationalization plan consumed an investment of about US$ 43 million in the last few years.

Profile

O Boticário started its story in 1977 as a small prescription pharmacy in downtown Curitiba, capital city of Paraná, in southern Brazil. Between direct and indirect jobs, O Boticário generates about 12,000 jobs. The factory alone, located in São José dos Pinhais, has about 1,100 employees.

In Brazil, the company counts on more than 2,400 stores. In the international market, the brand is present in 55 stores and 1002 points of sales spread around 24 countries.

The O Boticário line of products counts on approximately 600 items, amongst products for body care, facial care, sun blocks, make-up, perfumes, deodorant, soaps and shampoos.

In January 2006, O Boticário received, in New York, the award The International Retailer of the Year, from The National Retail Federation of the United States.

The prize is an acknowledgement to companies and businessmen in retail that contribute substantially with the sector through their leadership, creativity and innovation.

Anba – www.anba.com.br

Sector exports to the Middle East grew 48% last year when compared to 2004, from US$ 4.8 million to US$ 7.1 million.

The companies mentioned above participated in BeautyWorld Middle East, which takes place every year in Dubai, in the United Arab Emirates, and this year took place between May 22 and 24.

Brazilians should close deals of US$ 10.77 million in the next 12 months after the fair. This figure was supplied by the Brazilian Association of Toiletries, Perfumes & Cosmetics Industries (Abihpec).

"One of the greatest triumphs of the national cosmetics industry in the Arab market is the segment of hair products, which represents 44% of the total exported to the region, followed by oral hygiene products and fragrances," stated João Carlos Basí­lio da Silva, president at the Abihpec.

Vita Derm, Cless Cosméticos and Beauty Color participated in the fair in Dubai with over 12 Brazilian companies. Apart from selling products, Vita Derm intends to train Arab professionals.

Vita Derm already operates in this manner in Portugal and the United States. A company aesthetician frequently travels to both countries to work on training courses that may demonstrate the correct way of using the products.

"We are negotiating with a large company that owns a training center," stated the foreign trade analyst at Vita Derm, Eliseu Simões Neto, regarding the training.

According to him, the company’s target public is hotels, spas and beauty and aesthetics parlours. "It is a fantastic market. I was impressed with the potential for consumption of greater added value products, like those made by Vita Derm," he said.

This was the first Cless Cosméticos participation in the fair in Dubai. The shampoo, conditioner and hair treatment producer, based in the city of Barueri, in the interior of the state of São Paulo, already exports to the United Arab Emirates and Kuwait, and is negotiating with Saudi Arabia, Yemen, Egypt, Qatar and Lebanon.

Maurí­cio Campos, the company business manager, explains that since it was established, in early 2005, the company focus abroad has been the Arab countries.

"Our strategy for victory on the Arab market was well thought up. We have already presented our products to the region in packages with text in English and Arabic," he explained.

With annual revenues of US$ 34 million, the company exported around US$ 700,000. The target for the beginning of the year of 2007 is sales of US$ 1 million on the foreign market, being the main destination the Arab market.

Hair dye, shampoo and hair treatment producer Beauty Color, in turn, which is based in the city of Pinhais, in the interior of the state of Paraná, participated in the fair in Dubai for the third consecutive time.

"The fair this year was very good for us to meet new customers and proceed with business. It is important for our customers to see that we are present," explained Paulo Roberto Pontinha, the foreign trade manager at the company. Beauty Color already exports to Palestine, Jordan, Kuwait, the United Arab Emirates, Iraq and Saudi Arabia.

The Brazilian pavilion at BeautyWorld Middle East 2006, coordinated by Abihpec with the support of the Brazilian Export and Investment Promotion Agency (Apex), was visited by around 630 buyers from countries like Saudi Arabia, Singapore, Egypt, Iraq, Jordan, Lebanon and Syria.

The United Arab Emirates present one of the greatest levels of population growth in the world, with an annual average of 5%. Over 60% of the country inhabitants are under 25, representing a promising market for beauty products.

The buying power for sector articles in the region has been growing approximately 19% a year. Last year, purchases exceeded US$ 2.1 billion.

The spaces turned to cosmetics retail grew on average 30% in the last three months and it is estimated that there are over 30,000 hairdresser salons in the region.

Anba – www.anba.com.br

Today, 10% of the cosmetics company in the country are located in the city, which is part of the ABCD (Santo André, São Bernardo, São Caetano, Diadema) square of towns in the Greater São Paulo.

In Bahia, the productive chain in the beauty industry is being set up silently since 2001. At the time, only two companies were legalized by the National Health Surveillance Agency (Anvisa). Currently there are 28 companies in formalization process and 18 in legalization.

In all, it is estimated that there are 120 companies in the sector, between the formal and informal ones. They are concentrated mainly in Salvador, but some are in the cities of Feira de Santana and Lauro de Freitas.

In Fortaleza, city in the state of Ceará, Northeast Brazil, another cosmetics hub is forming in the metropolitan region. The Sectorial Project for Cosmetics and Toiletries, started in January this year, is offering support for the sector throughout the state.

This is the result of the partnership between the Brazilian Micro and Small Business Support Service (Sebrae) unit in Ceará, the Union of Chemical, Pharmaceutical, Distillation and Oil Refinery of Paraná (Sindiquí­mica), the Brazilian Association of Toiletries, Perfumes & Cosmetics Industries (Abihpec), the Euvaldo Lodi Institute (IEL), among others.

In Minas Gerais, Southeast Brazil, the beauty industry caught the attention of Sebrae last year with measures aiming at exports, when 92 companies acted in the market properly regulated by Anvisa. Eight of these companies planned on reaching the international market.

"Up to this moment, there hadn’t been a project for the cosmetics sector," stated Simone Mendes, coordinator at the International Nucleus of the Sebrae in Minas Gerais. The companies are concentrated in the metropolitan regions of the cities of Belo Horizonte and Uberlândia.

Sebrae

The figures are supplied by Euromonitor, which accompanies the consumption of the ten largest industries in the world.

The increase of national consumption of sector products was 34.2%, against a world average of 8.2%. The three countries ahead of Brazil are the United States, Japan and France.

"The expectation is that with annual growth of over 20%, the country may reach the third position in 2007 or, at the latest, 2008," stated João Carlos Basí­lio da Silva, the president of the Brazilian Association of Toiletries, Perfumes & Cosmetics Industries (Abihpec).

According to the Abihpec president, there are some reasons for this accelerated growth: the reduction of taxes on products like sunblock lotion, toilet paper and hygienic pads, the creation of new consumer habits and the consistent effort of the sector industry to launch new competitive products.

The Brazilian cosmetics industry has expanded its markets abroad, although the countries of South America are still the main destinations. In recent years, new markets, like the Arabs, have been added to the list of importers. The market in greatest expansion is that of the United Arab Emirates, followed by Lebanon, Jordan and Libya.

According to information supplied by the Abihpec, the organization is seeking expansion of the scope of sector buyers, mainly supporting the participation of Brazilian companies in international fairs.