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Ingredients & formulation

French company Gattefossé records 30% growth in Brazil with a focus on dermocosmetics and sun care products

The Brazilian subsidiary plans to build an R&D laboratory aimed at developing specific formulas for the Latin American market.

French manufacturer of specialty ingredients for the health and beauty industry, Gattefossé had been operating in over 60 countries – mainly in Europe and Asia – when it decided to replace its distribution network in Brazil for a full-fledged branch based in São Paulo. The US and Canada had their own subsidiaries; it was time to set foot in Latin America.

Amanda Pimentel, business manager at Gattefossé for South and Central (...)

Amanda Pimentel, business manager at Gattefossé for South and Central Americas - Larissa Reischl, technical support and marketing at Gattefossé Brazil

We wanted to increase our presence in Brazil and get closer to customers in and around the country, including neighbors such as Colombia, Peru, Argentina and Chile,” says Amanda Pimentel, business manager at Gattefossé for South and Central Americas. The company started as a family business in 1880, in the French city of Lyon, specializing in the development and supply of chemicals for the cosmetic and pharmaceutical industries. It now holds 13 subsidiaries branches, two production plants and three laboratories.

Gattefossé do Brasil is the youngest of all subsidiaries and has been showing promising results. “We’re evolving at a satisfactory rate. Last year we had a 30% growth in sales in the regions where we currently operate,” says Pimentel. She believes Brazil is still hardwired towards the mass market, “especially when it comes to hair care products” – but also experiencing a strong trend towards premiunisation, with more and more high-end products finding their way into the shelves.

We have clients with expertise and laboratories complying with the same standards as that of any first world country. They are technically very well structured and seek out innovative solutions for their products, going above and beyond ROI to focus on superior results,” says Pimentel. To supply this demand for premium ingredients, Gattefossé has added new products to their lineup. In April, the company launched Gatuline Renew, a retexturizing ingredient that claims to reactivate the cell renewal mechanism and restore the capacity of the skin to regenerate. “We have invested heavily on clinical tests that prove the power of this active ingredient,” she says.

Today, Gattefossé’s main clients in Brazil are manufacturers of dermocosmetics and beauty products with a high concentration of pharmacological components that penetrate into the deepest layers of the skin. This industry segment, halfway between pharmaceuticals and cosmetics, has been showing remarkable growth in the country, with YoY rates around 20% to 30%, according to IMS Health.

Within the cosmetics area, sun care is undoubtedly a huge market,” says Pimentel. Now the second-largest consumer of sun care products, Brazil is bound to generate R$ 4 billion is sales this year, according to market research firm Mintel, with a forecasted growth of 14% compared to 2015. “The industry has been investing continuously and heavily in sun care and we offer solutions such as emulsifiers and textures that present high stability and sensorial benefits,” she says.

Pimentel also points out the development of ingredients that stem from field studies, such as climate adaptation, and reveals that Gattefossé plans on establishing a lab dedicated to creating formulas specifically developed to the health and beauty markets in Latin America. But she doesn’t risk giving a date for the project’s completion, stating that the company’s strategy in Brazil is for the long-term.

Renata Martins

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