Fragrances in Brazil

PRE-COVID-19 PERFORMANCE

Premium fragrances continue to outperform mass fragrances in 2019

Sales of premium fragrances continued to record much stronger growth than mass fragrances in 2019, even after the strong performance seen in 2018. As seen over the last year, pricing strategies remained one of the key reasons behind this performance.

Promotions and innovation help sales of mass fragrances in 2019

2019 continued to be marked by an increasing interest in products with greater added value in mass fragrances. Consumers continued to demand high-quality products backed by strong storytelling around them, demanding brands to also focus on better packaging and detailed marketing campaigns to promote their products.

Increasing shares for Grupo Boticário and Natura&Co, but Larru’s Indústria e Comércio de Cosméticos fares less well

Grupo Boticário continued to lead fragrances in Brazil in 2019. The company made successful launches in 2019 that helped contribute to strengthening its positioning in the category, especially in men’s fragrances.

2020 AND BEYOND

COVID-19 impact

Sales of fragrances are now expected to decline by 10% in 2020 at constant 2019 prices in light of the impact of COVID-19. This compares to the 4% rise forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within fragrances

All product areas across fragrances are expected to record declining value sales in 2020 at 2019 constant prices, and all will also see much worse performances than a year earlier in 2019. Mass fragrances will generally record worse performances, with double-digit downturn in most areas, than premium fragrances, although this is a general ongoing trend in the overall fragrances category in Brazil.

Recovery and opportunities

After 2020’s sharp decline in value sales at constant 2019 prices, fragrances will see a swift rebound into positive growth again in 2021. Post-2020 value growth rates in fragrances are also expected to be slightly stronger than the previously forecast growth rates over the rest of the forecast period.

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