Daniela Ferreira, Correspondent01.03.20
Brazil is in the No. 2 fragrance market in the world, trailing only the US and ahead of Germany, France and the UK. Together, sales in the Big 5 neared $51 billion in 2018, with the US holding a 16.5% share and Brazil 13.4%, according to Euromonitor International. Yet, the Brazilian fragrance market declined 4.2% from 2013 to 2018 as the global fragrance market fell 1.2%. In contrast, sales in the US and China (No. 11), surged 13.5% and 48.5%, respectively. Looking ahead, experts predict that through 2023, fragrance sales will rise 14% globally, in particular, 33.7% in Brazil and 53% in China.
On the world stage, the best seller brand is Arabian Oud (Arabian Oud Co) followed by Jo Malone London (Estée Lauder Cos Inc.), Chanel Nº 5 (Chanel SA), Malbec (Grupo Boticário) and Chanel Coco Mademoiselle (Chanel SA). Domestic brands are dominant in Brazil, with Malbec (Grupo Boticário) No. 1, followed by Natura Ekos (Natura & Co); Hinode (Larru´s Industria e Comércio de Cosméticos Ltda), Floratta (Grupo Boticário) and Natura Humor (Natura & Co), according to Euromonitor International.
Yet, in premium fragrances, Brazil represents only 1.4% of the global market, which reached $30.4 billion in 2018, according to Euromonitor—although the forecast is to rise 47% through 2023. Indeed, Segmenta, a Latin America marketing intelligence and research company, reports this selective fragrance market grew approximately 15% in value in South America (Argentina, Brazil, Chile and Peru) in 2018, heavily influenced by Brazil which represents nearly half of the region’s value sales. Latin America’s best-selling feminine lines (including flankers) in Latin America are: La vie est belle (Lancôme), 212 (Carolina Herrera), Good Girl (Carolina Herrera), J’adore (Dior) and Miss Dior (Christian Dior. The top five masculine lines are: 212 men (Carolina Herrera), One Million (Paco Rabanne), Invictus (Paco Rabanne), Azzaro Homme (Azzaro) and Sauvage (Christian Dior).
Market Drivers
A driver of feminine fragrances were new launches such as flanker Good Girl Légere (Carolina Herrera), L’Interdit (Givenchy) and Si Passione (Giorgio Armani). The feminine prestigious fragrance market is 1.5 times larger than the masculine in both units and values, but it grew slightly faster than feminine (15% vs. 14.5%, respectively), mainly due to two major trends that continue to support market development in the region: the new volume options and the opening of new points of sale. The brands bet on new size options for attracting and/or retaining new consumers. Market leader Puig pioneered large volume strategies (>126ml), especially for the male market. Iconic brands like Carolina Herrera and Paco Rabanne offer a 200ml version and always rank among the top-selling SKUs—six out of 10 masculine fragrances sold were over 126ml. For female fragrances, although available in larger volumes, they still have a small representation in the whole category (just 3% vs 16% for men). The online channel was also one of the drivers for the region’s growth—especially in Brazil, while in other countries (Argentina, Brazil, Chile e Peru) e-commerce did not exceed 7% of total sales; in Brazil it represented 16% of the market (Segmenta/2019).
What’s Happening?
According to Lucia Lisboa, VP-fine fragrance Latin America, Givaudan, premiumization is moving markets, as there were launches of more niche EDPs and experimental products in 2019. Splashes have also made a comeback. Volumetric reduction and miniatures, which democratized use and increased experimentation provided a lift. At the same time, there is growing demand for natural ingredients, vegan and plant-based storytelling. Furthermore, it has been seen a lot of investment in special editions and gift sets as companies have created exclusive departments in these areas.
Lisboa claims that innovation is at the heart of domestic perfumery gains, including elaborate storytelling, new ingredients and artificial intelligence. Pipelines are full with launches that are said to boost mood.
Regarding olfactory trends and opportunities, there is a growth of the chypre family, with notes that are more elaborate, modern, easier to use. The woody family is protagonist for both male and female perfumery. Fougere, which was predominantly male, but already widely used by women, now has more feminine nuances. Lisboa predicts that naturalness as well as social and environmental impact will be further explored. The artisan side, through sustainable and rare ingredients will be more evident.
Vollmens, a Brazilian fragrance house for small and medium-sized regional companies, predicts an increasing demand for safer and more effective products as natural phthalate-free fragrances and potential allergens, as well as the search for perfumes with free-from animal-derived products and also that do not harm the environment. Furthermore, the personalization concept also holds strong as people today want to feel “unique” and perfume can play an important role in fulfilling this desire.
According to Alessandra Tucci, founding director of perfumery school Paralela Escola Olfativa, the major perfume brands in Brazil are working on two fronts: social and environmental engagement. Natura uses recycled glass in perfume bottles and its Brazilian biodiversity programs impact 20 ingredients and 60,000 people. Furthermore, its positioning as Casa de Perfumaria do Brasil (Brazil’s Perfumery House) is a counterpoint to national preference for imported fragrances.
O Boticario traces multiple paths; its campaigns talk about the most sensitive and current issues: gender, new family models, the role of men and women. O Boticario is putting more emphasis on its sustainability efforts.
Tucci claims that with so much innovation, it is difficult to predict olfactory trends; each brand proposal and business model has its own logic. One thing’s for sure, there will be less emphasis on the gourmands and fruity notes that dominated the past decade. Some other highlights include:
O Boticario, Natura and Hinode are the biggest local players in the Brazilian fragrance market. Here’s a look at their recent launches. After two years of R&D, O Boticario launched 214 Golden Gardenia and 214 Musk & Cedro. Both contain rare floral materials. Botica 214 Golden Gardenia, for example, mixes amber with yellow gardenia, that’s a departure from typical white gardenia in compositions.
“This is a sophisticated flower, solar and sensual, but still little explored in perfumery,” explains Diego Costa, perfumery manager of O Boticário. “It was after an olfactory expedition to French Polynesia that we discovered this preciousness. The result is an enlightened and sensual combination.”
The second release, Botica 214 Musk & Cedro, combines notes of noble cedars with spicy Lao cinnamon nuances in contrast to the musk notes, which bring comfort to the fragrance, according to the company.
Malbec Vert combined fresh and woody nuances to compose the Malbec brand portfolio. In partnership with Firmenich, O Boticario joined the wine alcohol, the Malbec DNA, with the sensation of the frozen grapes of Ice Wine, wine obtained through a special harvest at temperatures of -8ºC.
Linda Felicidade (Linda Happiness), is said to use neuroscience to deliver “the smell of happiness.” O Boticario partnered with Givaudan to create hundreds of olfactory blends using statistical analysis.
Luna Rubi, Natura’s first spicy chypre deo parfum, is inspired by red, a color of femininity.
This Brazilian chypre is a new interpretation of this traditional olfactory family. Fruity notes increase in intensity with red flowers.
Ekos Alma was produced with a crop concept, in limited quantity, and brings the essential oil of priprioca root aged for 12 months in Amazonian wood.
New Essential Supreme combines ylang ylang and patchouli with the warmth and sensuality of Ishpink, known as Amazonian cinnamon, exclusive of Natura. Ishpink iscombined with almond in a sweet balm, with a warm and sensual aroma.
Hinode is a 30-year-old multilevel Brazilian company with about 600 products in its portfolio. It sells more than 9 million items a month in more than 450 franchises in Brazil.
According to Alessandro Rodrigues, VP-product development, the five-item Empire line is the best seller. Hinode relies on social networks and digital media to maintain relationships with each brand.
There are other opportunities, too. According to Mintel 33% of adults in Brazil are interested in in-shower fragrances; 14% are interested in fragrance sticks and 13% are interested in other solid fragrance forms. There is also a white space for more customizable scent formulas based on consumers’ particular desires or are created using smart data.
Indeed, in Brazil, 20% of adults are interested in custom-blended or DNA-based scents, or would like to use an app/in-store tool that recommends fragrances.
Finally, there opportunities in mood-enhancement. In Brazil, 37% of adults are willing to try aromatherapeutic products to help manage their emotional and physical wellbeing.
Daniela Ferreira
Correspondent
danief@uol.com.br
Mobile: 55-11-993880867
Daniela Ferreira is a marketing and communication professional in the cosmetic market. She has a master’s degree in fashion from the University of São Paulo (USP). The study presented in the thesis, integrated product launching in fashion and perfume, mainly comprising marketing studies related to brand, product and consumer behavior. At present, she is lecturer on marketing issues. Her expertise comprises managing and launching products, communication planning and market studies for identifying new business opportunities.
On the world stage, the best seller brand is Arabian Oud (Arabian Oud Co) followed by Jo Malone London (Estée Lauder Cos Inc.), Chanel Nº 5 (Chanel SA), Malbec (Grupo Boticário) and Chanel Coco Mademoiselle (Chanel SA). Domestic brands are dominant in Brazil, with Malbec (Grupo Boticário) No. 1, followed by Natura Ekos (Natura & Co); Hinode (Larru´s Industria e Comércio de Cosméticos Ltda), Floratta (Grupo Boticário) and Natura Humor (Natura & Co), according to Euromonitor International.
Yet, in premium fragrances, Brazil represents only 1.4% of the global market, which reached $30.4 billion in 2018, according to Euromonitor—although the forecast is to rise 47% through 2023. Indeed, Segmenta, a Latin America marketing intelligence and research company, reports this selective fragrance market grew approximately 15% in value in South America (Argentina, Brazil, Chile and Peru) in 2018, heavily influenced by Brazil which represents nearly half of the region’s value sales. Latin America’s best-selling feminine lines (including flankers) in Latin America are: La vie est belle (Lancôme), 212 (Carolina Herrera), Good Girl (Carolina Herrera), J’adore (Dior) and Miss Dior (Christian Dior. The top five masculine lines are: 212 men (Carolina Herrera), One Million (Paco Rabanne), Invictus (Paco Rabanne), Azzaro Homme (Azzaro) and Sauvage (Christian Dior).
Market Drivers
A driver of feminine fragrances were new launches such as flanker Good Girl Légere (Carolina Herrera), L’Interdit (Givenchy) and Si Passione (Giorgio Armani). The feminine prestigious fragrance market is 1.5 times larger than the masculine in both units and values, but it grew slightly faster than feminine (15% vs. 14.5%, respectively), mainly due to two major trends that continue to support market development in the region: the new volume options and the opening of new points of sale. The brands bet on new size options for attracting and/or retaining new consumers. Market leader Puig pioneered large volume strategies (>126ml), especially for the male market. Iconic brands like Carolina Herrera and Paco Rabanne offer a 200ml version and always rank among the top-selling SKUs—six out of 10 masculine fragrances sold were over 126ml. For female fragrances, although available in larger volumes, they still have a small representation in the whole category (just 3% vs 16% for men). The online channel was also one of the drivers for the region’s growth—especially in Brazil, while in other countries (Argentina, Brazil, Chile e Peru) e-commerce did not exceed 7% of total sales; in Brazil it represented 16% of the market (Segmenta/2019).
What’s Happening?
According to Lucia Lisboa, VP-fine fragrance Latin America, Givaudan, premiumization is moving markets, as there were launches of more niche EDPs and experimental products in 2019. Splashes have also made a comeback. Volumetric reduction and miniatures, which democratized use and increased experimentation provided a lift. At the same time, there is growing demand for natural ingredients, vegan and plant-based storytelling. Furthermore, it has been seen a lot of investment in special editions and gift sets as companies have created exclusive departments in these areas.
Lisboa claims that innovation is at the heart of domestic perfumery gains, including elaborate storytelling, new ingredients and artificial intelligence. Pipelines are full with launches that are said to boost mood.
Regarding olfactory trends and opportunities, there is a growth of the chypre family, with notes that are more elaborate, modern, easier to use. The woody family is protagonist for both male and female perfumery. Fougere, which was predominantly male, but already widely used by women, now has more feminine nuances. Lisboa predicts that naturalness as well as social and environmental impact will be further explored. The artisan side, through sustainable and rare ingredients will be more evident.
Vollmens, a Brazilian fragrance house for small and medium-sized regional companies, predicts an increasing demand for safer and more effective products as natural phthalate-free fragrances and potential allergens, as well as the search for perfumes with free-from animal-derived products and also that do not harm the environment. Furthermore, the personalization concept also holds strong as people today want to feel “unique” and perfume can play an important role in fulfilling this desire.
According to Alessandra Tucci, founding director of perfumery school Paralela Escola Olfativa, the major perfume brands in Brazil are working on two fronts: social and environmental engagement. Natura uses recycled glass in perfume bottles and its Brazilian biodiversity programs impact 20 ingredients and 60,000 people. Furthermore, its positioning as Casa de Perfumaria do Brasil (Brazil’s Perfumery House) is a counterpoint to national preference for imported fragrances.
O Boticario traces multiple paths; its campaigns talk about the most sensitive and current issues: gender, new family models, the role of men and women. O Boticario is putting more emphasis on its sustainability efforts.
Tucci claims that with so much innovation, it is difficult to predict olfactory trends; each brand proposal and business model has its own logic. One thing’s for sure, there will be less emphasis on the gourmands and fruity notes that dominated the past decade. Some other highlights include:
- Lighter gourmands with less coffee, chocolate, caramel. It represents a search for transparency and light. The difference is in the delicate dose of sugar.
- Soft perfumes made from very simple formulations, with technological ingredients of great diffusion and persistence with a certain subtlety. These scents “finish” on skin or they can be combined with another perfume because they are more neutral and work as a primer, a foundation.
- Floral bouquets without a prominent flower will make room for greater olfactory identity. Notes include white, solar floral with transparent coconut notes or clean, green white florals.
- The return of citrus perfumes, the eau de cologne structures and floral lavenders.
O Boticario, Natura and Hinode are the biggest local players in the Brazilian fragrance market. Here’s a look at their recent launches. After two years of R&D, O Boticario launched 214 Golden Gardenia and 214 Musk & Cedro. Both contain rare floral materials. Botica 214 Golden Gardenia, for example, mixes amber with yellow gardenia, that’s a departure from typical white gardenia in compositions.
“This is a sophisticated flower, solar and sensual, but still little explored in perfumery,” explains Diego Costa, perfumery manager of O Boticário. “It was after an olfactory expedition to French Polynesia that we discovered this preciousness. The result is an enlightened and sensual combination.”
The second release, Botica 214 Musk & Cedro, combines notes of noble cedars with spicy Lao cinnamon nuances in contrast to the musk notes, which bring comfort to the fragrance, according to the company.
Malbec Vert combined fresh and woody nuances to compose the Malbec brand portfolio. In partnership with Firmenich, O Boticario joined the wine alcohol, the Malbec DNA, with the sensation of the frozen grapes of Ice Wine, wine obtained through a special harvest at temperatures of -8ºC.
Linda Felicidade (Linda Happiness), is said to use neuroscience to deliver “the smell of happiness.” O Boticario partnered with Givaudan to create hundreds of olfactory blends using statistical analysis.
Luna Rubi, Natura’s first spicy chypre deo parfum, is inspired by red, a color of femininity.
This Brazilian chypre is a new interpretation of this traditional olfactory family. Fruity notes increase in intensity with red flowers.
Ekos Alma was produced with a crop concept, in limited quantity, and brings the essential oil of priprioca root aged for 12 months in Amazonian wood.
New Essential Supreme combines ylang ylang and patchouli with the warmth and sensuality of Ishpink, known as Amazonian cinnamon, exclusive of Natura. Ishpink iscombined with almond in a sweet balm, with a warm and sensual aroma.
Hinode is a 30-year-old multilevel Brazilian company with about 600 products in its portfolio. It sells more than 9 million items a month in more than 450 franchises in Brazil.
According to Alessandro Rodrigues, VP-product development, the five-item Empire line is the best seller. Hinode relies on social networks and digital media to maintain relationships with each brand.
There are other opportunities, too. According to Mintel 33% of adults in Brazil are interested in in-shower fragrances; 14% are interested in fragrance sticks and 13% are interested in other solid fragrance forms. There is also a white space for more customizable scent formulas based on consumers’ particular desires or are created using smart data.
Indeed, in Brazil, 20% of adults are interested in custom-blended or DNA-based scents, or would like to use an app/in-store tool that recommends fragrances.
Finally, there opportunities in mood-enhancement. In Brazil, 37% of adults are willing to try aromatherapeutic products to help manage their emotional and physical wellbeing.
Daniela Ferreira
Correspondent
danief@uol.com.br
Mobile: 55-11-993880867
Daniela Ferreira is a marketing and communication professional in the cosmetic market. She has a master’s degree in fashion from the University of São Paulo (USP). The study presented in the thesis, integrated product launching in fashion and perfume, mainly comprising marketing studies related to brand, product and consumer behavior. At present, she is lecturer on marketing issues. Her expertise comprises managing and launching products, communication planning and market studies for identifying new business opportunities.
