Economic review

Recession hurts Brazil's cosmetics industry

2017-05-27 14:33:00 (Beijing Time)         CGTN

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Nathalia Penteado tells the reporter she has switched to cheaper cosmetics products.(CGTN photo)

Brazil's cosmetics industry was once one of the fastest growing sectors in the world. However, it's getting a bit of a black eye these days. Revenue dropped last year as a recession hit the country, which has resulted in consumers buying less and looking for cheaper products.

For a fashion consultant like Nathalia Penteado, cosmetic products play an essential role in her sales revenue every month, which take a considerable chunk out of her budget. But as recession persists in Brazil and her clients spend less, she has made some adjustments to her buying habits.

The recession has hit the Brazilian domestic market for beauty and personal hygiene products. According to the industries' association, revenue dropped by six percent last year, compared to 2015.

The president of the Cosmetics and Personal Hygiene Industry Association says when consumer demand dropped, companies had less to invest. To compensate, companies are trying to invest more in exporting their products.

This year was the second straight year of decline in the Brazilian cosmetics industry, and as the recession continues, companies won't rule out the same could happen in 2017.