Pricing Strategy as Opportunity in the Anionic Surfactants Market in Brazil, Finds Frost & Sullivan

Dec. 16, 2010 - PRLog -- SAO PAULO – 15 December 2010 – Brazil surfactants market is large, diverse, and growing, as anionic surfactants has been assuming a high importance in key applications, such as agrochemicals formulations, pharmaceutical, oil drilling, and the traditional shampoos and detergents industries. The anionic surfactants business was classified as totally regional, as the diluted products were not competitively imported in Brazil. However, with the advent of new manufacturers exporting or willing to export to Brazil at competitive prices, the anionic surfactants business is facing a strong international competition.

In Brazil, the anionic surfactants market is reaching a mature stage, with growth rates being driven by the sustained development of end-user segments, mainly by personal care (shampoos) and household products (detergents). Sulfonated surfactants are the most representative in volumes in the Brazilian anionic surfactants market, accounting for 74.6% of the total market volume, estimated in 298,613 MT in 2010. The most widely used product is LAS (Linear Alykylbenzene Sulfonate).

The total anionic surfactants market in Brazil generated revenues of US$788.3 million in 2010, which represented an increase of 5.8% when compared to the previous year. This can be attributed to the significant growth that the personal care sector has been presenting in Brazil, even considering the economic downturn from late 2008. In 2017, the market is expected to be valued at US$1,110.1 million, by growing at a CAGR of 5.1% from 2010 to 2017. By then, the personal care sector, a strong driver in the anionic surfactant market, is likely to approach maturity in Brazil, with reduction and stabilization of its growth rates.

The Brazilian surfactants market in general is seen as a promising business opportunity for both local and global companies. “After conducting this research, main drivers for this market can be ranked as follows: growth of end-users sectors, customers focusing on emerging markets, growing use of liquid detergents, shift from petrochemical derivatives to renewable-sourced surfactants, local availability of raw materials”, explains Alessandra Lancellotti, Frost & Sullivan Team Leader for the CMF practice in Latin America.

The most critical factor for end users in the purchase process is the price level. For personal care and household market participants, raw material prices must be affordable as these industries are constantly pressured by narrowing margins. Product delivery is also important, since the detergent industries produce large volumes and the retail chain must be supplied in accurate timing.

Product portfolio is also pointed as an important criterion in the purchasing process for anionic surfactants. Mostly for personal care product formulators, a wide range of goods is important as they are always researching new formulations that can provide better performance to end users. On the other hand, support services and competitive packaging were rated as less important criteria in the purchasing process.


If you are interested in more information on this study, please send an e-mail to Tatiana Brull, at tatiana.brull@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.

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Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's research and consulting services empower clients to generate, evaluate, and implement effective growth strategies.