- Manufacturers need to invest in research and development to create cost-effective, multifunctional products
SAO PAULO, Oct. 17, 2012 /PRNewswire/ -- The burgeoning middle class drives the increasingly innovative and expanding surfactants market in Brazil. Over the past few years, the growth rate of the personal and home care sectors has exceeded even the country's gross domestic product (GDP). With more women joining the workforce, the end-user base is expected to continue growing steadily, actively enhancing the prospects of this mature market.
New analysis from Frost & Sullivan (http://www.chemicals.frost.com), Analysis of the Brazilian Surfactants Market, finds that the market earned revenues of over $1.31 billion in 2011 and estimates this to reach $1.90 billion in 2018.
Between 2009 and 2011, about 10 million people joined the 'new middle class', which currently accounts for more than 55 percent of the total population in Brazil. Higher incomes, rising middle class purchasing power and an aging population that is increasingly concerned with health and beauty issues, have fuelled the adoption of surfactants in general, with personal care and household products being the most popular.
"Consumers demand additional utilities from these products, including cosmetic and health benefits," said Frost & Sullivan Industry Analyst Lisse de Oliveira. "This has encouraged the development of multifunctional surfactants, which have significantly added value to the market."
Though established companies dominate the personal care, detergent, and cleaning formulation sectors in Brazil, several small manufacturers produce and sell poor-quality products, affecting the whole surfactants value chain.
Without the burden of the high taxes usually imposed on regular companies, these informal producers distribute their minimally-packaged and unbranded products door-to-door or in small groceries. They gain an imprecise but considerable share of the market, reducing the potential sales of high-quality surfactants.
This highlights the urgent need for fiscals and the government to educate end-users on illegal commodities, and raise awareness on the ill-effects that the informal market can have on the economy.
"Fueled by increasing recognition in the market, popular brands and private labels that offer superior products at competitive prices will fare well, especially among the lower income class," noted Oliveira. "Therefore, companies should invest more in the research and development of new raw material solutions."
Offering products with better benefits and lower costs will enable participants to win market share, achieve high growth, and stay competitive.
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Analysis of the Brazilian Surfactants Market
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SOURCE Frost & Sullivan