Economics

Tissue and Hygiene in Brazil

Tissues and hygiene registers positive growth in 2014 despite economic downturn

Despite the economic downturn of 2014, tissues and hygiene registered steady value growth of 10%. The value growth was marginally lower in comparison with 2013, but still showed the industry´s capability to renew itself and to focus more effectively on Brazilian consumer demands. The industry was mainly pushed by toilet paper, incontinence and sanitary protection, having those a strong correlation with value adding products and overall consumption sophistication.


Brazilian consumers look for quality, but are unwilling to overspend

The fact that Brazilian consumption of tissue and hygiene is becoming more sophisticated is clear to the market nowadays, but there is a question over whether local consumers are ready to spend much more on such products. The perceived quality enhancement is bringing results to manufacturers, but to establish the right price for tissue products is a turning point to succeed locally, such as to attract and increase the fidelity of a brand. Extra benefits and features to products are a driver, but planning is essential.


Bigger packages gain in importance in order to increase the access of specific products to the consumer

Despite sophistication, cost-benefit was an important sales factor in 2014. The rise in income levels over the review period was lower than previous years, and the political and macro-economic scenario remained fairly uncertain. Yet, a significant proportion of consumers had already incorporated more sophisticated products into their daily lives, and they were not willing to take a step back to using simpler products. Selling bigger packages means a lower price per unit and an increase in sales, which results in money savings and also helps to offset the higher cost of specific value products, benefiting both consumer and manufacturer.


With better discount possibilities, supermarkets and hypermarkets gain in importance over the review period

Since tissue and hygiene is also gaining in scale, larger channels tend to benefit from this specific trend due to better storage capacity and higher discount possibilities. This is where a gain in importance from supermarkets and hypermarkets is evidenced, together with Cash & Carry stores (wholesalers). Despite the channel diversification over the retailing universe in Brazil, the economic uncertainties are encouraging consumers to go shopping fewer times per month in comparison with 2013, although the average ticket is growing.


Enhanced technology and extra demand for sophistication are expected to drive sales for tissue and hygiene over the forecast period

Manufacturers ought to invest in new fibres and enhanced raw materials to develop new tissue and hygiene to the Brazil. New absorbing technologies and research and development for incontinence and nappies/diapers are also gaining space, and are expected to drive the growth for the market over the forecast period.  


Source: Euromonitor

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