Data published by the Monthly Trade Survey from the Brazilian Institute of Geography and Statistics (IBGE) shows that retail sales for the month grew by 1.4 percent compared to September, the highest month-on-month growth since June of this year.
However, the perfumery and cosmetics category outpaced this figure by far, recording month-on-month sales growth of 2.4 per cent, a figure that reinforces predictions that percentage growth for the category could be well into double figures in 2009.
Retail growth down to greater spending power
The IBGE attributes the break neck retail growth in Brazil to the fact that country’s population has achieved greater purchasing power through higher employment levels and more stable retail prices.
The figure shows that retail sales have grown by 5.1 percent in the year to date ending in October, a stark contrast to many of the developed global markets, where percentage decreases have been recorded into double figures.
Brazil has been leading the way in the global personal care market in recent years, posting annual growth that has beaten all other global markets for the past two years, according to industry association ABIHPEC.
Brazil cosmetics market leads the world
In 2008 the Brazilian Association of Toiletries, Perfumes & Cosmetics (Abihpec) said that the Brazil market grew at 8.6 percent in 2008 to reach BRL 21.2bn ($8.9bn), a figure that is currently only matched by the Chinese and Indian markets.
Although the figures was still industry-leading, growth was significantly down on the year 2007, when the market grew by 14 percent and was placed as the world's fourth largest market for personal care.
At the beginning of this year, the association’s president Joao Carlos Basilio said he believed that the global economic downturn may spell even greater opportunities for Brazilian personal care exports, as economic conditions are likely to improve the competitiveness of its exports.