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Markets & trends

Sales of sunscreen products set to expand by 14% in 2015

Unique packaging, multi-functional make-up and products that combine protection and tanning are among the highlights of the category.

The greater awareness customers now have of the risk of exposing their skin to the sun, combined with the unwanted long-term effects of sun exposure, such as wrinkles, blotches and premature ageing, is giving the Brazilian sunscreen market a boost.

Market research firm Mintel expects the Brazilian market to have a turnover of R$2.5 billion in 2015 – 14% higher than the previous year – and estimates that sales will rise to R$3.5 billion by 2018. Figures from the Brazilian Association of the Cosmetic, Toiletry and Fragrance Industry (ABIHPEC) show that Brazil accounts for around 20% of consumption of sunscreen products in the world and 82% in Latin America.

Luciana Ignez, market analyst at Nielsen

Luciana Ignez, market analyst at Nielsen

Another contributory factor to the expansion of the market is the fall in prices as a result of taxes levied on the category being cut or eliminated. “We are persuading the authorities of the benefits of reducing taxes so the population at large can have greater access to the product,” says João Carlos Basilio, president of ABIHPEC. One example is in Rio de Janeiro where, in 2014, the state government cut the price of sunscreens with a Sun Protection Factor (SPF) equal to or above 30 by including them in the “basket” of basic items regarded as necessary to satisfy the needs of households by cutting the value-added tax duty (ICMS) from 18% to 7%. The Manufactured Products Tax (IPI) on sunscreen products, which soared to 77% in the 1990s, is now zero.

Although sunscreen items have enjoyed average annual growth of around 20% over the last 13 years, according to Euromonitor, there is still plenty of room for expansion. “Only 23.4% of Brazilian households purchased sunscreens last year and the sales volume was low, at just around 200 milliliters per household,” says Nielsen market analyst Luciana Ignez.

The industry has its eye on this potential and is pinning its hopes on new products to buoy up sales after the summer period has ended. “The fastest-growing segment is protection (SPF > 15). Items with SPF < 15, which had a market share of 8.9% in 2012, fell to 6.6% in 2014. Products which combine protection and tanning have also given outstanding performances,” Ignez added.

Tatiana Ponce, marketing director of BDF Nivea, said the idea that tanned skin is synonymous with beauty and health is still strong in Brazilian culture. “Protection is key for Brazilians who expose themselves to the sun, but getting a tan is still very important.” The Protect & Bronze (BDF Nivea), Efeito Dourado (Cenoura & Bronze) and Sundown Gold (J&J) ranges claim to offer protection from the harmful effects of the sun as well as providing a long-lasting, healthy tan.

Tatiana Ponce, marketing director at BDF Nivea

Tatiana Ponce, marketing director at BDF Nivea

In terms of packaging, figures from Nielsen show that sprays and aerosols are among the fastest-growing categories. Their share of the segment has jumped from 3.2% to 5.7% over the last two years. “Although lotions still hold the largest market share, differentiated and practical packaging and application models have been attracting more customers,” says Ponce, who gave the Nivea Sun Protect & Fresh line as an example. The fast-absorption aerosol spray used in the SPF 30 and 50 versions contains menthol and gives the skin a refreshing feeling.

Multi-use make-up is also following the main market trends. “Over 60% of make-up products already have a built-in sun protection factor,” says Basilio. Studies commissioned by ABIHPEC with Mintel show that 63% of the customers consulted use make-up with sunscreen protection. The same percentage use facial moisturizers with SPF.

Sunscreen products are expected to maintain their level of growth and follow the trend towards larger packaging and rising consumption of higher SPF,” says Ignez. To encourage the use of the product, a bill going through the Brazilian Senate includes the item in the list of medicaments within the government´s Popular Drugstore program (Farmácia Popular). Should the bill be approved, it will reduce the cost of the product to the end consumer even further.

Fernanda Bonifacio

Portfolio

© 2015 - Brazil Beauty News - www.brazilbeautynews.com

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