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Could Brazil Become a Premium Fragrance Market in the Future?

March 22nd, 2013

While Brazil is the world’s biggest fragrance market , and is expected to have the strongest absolute growth from 2011-2016, it is highly mass-dominated (over 90% of sales). The high import tax for fragrances, at over 40%, as well as the increase in disposable incomes for travelling, are pushing consumers into buying premium fragrances while abroad rather than in Brazil. In fact, the average price for premium fragrances in Brazil is more than double
that of the US, at over US$100 per 50ml. Click to Tweet!

While there are undoubtedly difficult challenges for premium fragrance brands to overcome in order to get a strong foothold in Brazil’s fragrance loving-market, Sephora’s presence is sure to shake up the field. As the use of
fragrances is deeply embedded in the country, Brazil is forecast to not only have the highest volume per capita in 2016, but also to be the third highest spending country in per capita terms, behind only the Netherlands and
Switzerland.

This creates a good opportunity for premium fragrances, which are facing a more challenging environment than other premium categories, due to a combination of cash-strapped consumers in developed markets and limited
inclination for fragrances in Asia Pacific.

Brazils high spend per capita shows premium potential

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