As the second-largest fragrance market in the world, Brazil will make its debut at the ScentXplore International Niche Fragrance Convention, represented by independent brands AMYI, CONDÉ PARFUM, LENVIE, PARUM SÃO PAULO, and VIKING. In this article, we’ll explore the evolution of Brazilian perfumery, from its ancestral roots to its rise in both mainstream and niche markets. The founders of these five brands share their insights on the current market landscape, how they set themselves apart, and the challenges and opportunities they foresee. The sixth edition of ScentXplore will take place at Chelsea Industrial, New York City, from December 5th to 7th, 2024.
A BRIEF HISTORY OF BRAZILIAN PERFUMERY
Brazilian perfumery has roots that trace back to indigenous peoples who used oils from flowers, herbs, and resins, abundant in the rivers and biodiversity in the North and Northeast regions of the country, for rituals and personal care. When the Portuguese colonizers arrived in 1500, a fusion of European and indigenous practices emerged, giving rise to new perfuming customs that have shaped consumer behavior over the centuries.
In the 20th century, the first commercial fragrances appeared, led by Seiva de Alfazema (1947), a so-called lavender water, produced by Phebo, founded in 1930. After decades limited to light eaux de cologne and scented hygiene products, Brazilians were introduced to Rastro by Aparício Basílio da Silva in 1965, considered the first perfume to meet the standards of coveted European perfumery. In the late 1970s, two companies, O Boticário and Natura, launched their first fragrances, and have since competed side by side, accounting for about 50% of the market in sales volume. In 2004, Phebo was acquired by Granado, founded in 1870, coming third. In a bold move, Natura acquired Avon Products, Inc. in 2020.
THE UNIQUE ASPECTS OF THE BRAZILIAN MARKET
According to ABIHPEC (Brazilian Association of the Personal Hygiene, Perfumery, and Cosmetics Industry), 78% of Brazil’s 215 million people wear fragrance. Euromonitor International estimates that the domestic fragrance market totals $6.8 billion, ranking it second only to the U.S. market, which is valued at $8.7 billion. France, Germany, and the United Kingdom combined account for $8.9 billion. But it’s not just ancestral habits that make Brazilians avid fragrance consumers…
The Brazilian tax system plays a crucial role, allowing fragrances to be classified by manufacturers as personal hygiene items, thereby reducing the excise tax rate from 42% (for fine fragrances) to 7%, provided they contain a deodorizing component in their formulation. To avoid association with functional products, the industry typically abbreviates the term “desodorante colônia” to “deo-colônia.” This is how perfume (eau de toilette) is known by Brazilians – an item considered as essential as food and entertainment.
However, over time, this deo-colônia system has created a perception that domestic products are not only inferior in quality to foreign ones but don’t even belong in the same category. When a domestic eau de toilette costs R$150, but a foreign designer fragrance at the same concentration is priced at R$750, it makes one wonder.
THE LATE RISE OF BRAZILIAN NICHE PERFUMERY
Since the mid-2010s, the Brazilian fragrance industry has been investing in eaux de parfum and exclusive lines, both priced at two or three times the cost of deo-colônias, respectively. This shift was intended to elevate the perception of quality and capture a share of the market dominated by foreign brands, which account for about 10% of sales volume. This trend coincides with the recent emergence of local niche perfumery, often called “perfumaria autoral” – while there’s no direct translation, the term captures a blend of artistic, independent, and authentic perfumery. It’s fair to say that, until ten years ago, niche perfumery was practically nonexistent in Brazil.
Brazilian niche brands take a similar approach to most of their foreign counterparts: authenticity, focus on the scent, high-quality ingredients, greater creative freedom, less advertising, smaller batches, simpler packaging, and no gender distinctions. However, these brands face a significant challenge when pricing their products, usually halfway between domestic eaux de parfum and imported mainstream designer fragrances. This strategy reveals an unavoidable reality behind their delayed rise: many domestic fragrance consumers prefer to save up for European or American fragrances, while those who already purchase these tend to overlook local niche perfumery in favor of international niche brands, which already account for one-third of the prestige sales in the country. Education is often seen as a way to overcome this barrier.
WHAT DO THE BRAZILIAN EXHIBITORS SAY
Larissa Mota, co-founder & creative director, AMYI
Larissa Mota, co-founder and creative director of Amyi, points out that since Amyi’s launch in 2019, the market for artistic perfumery in Brazil has been growing rapidly, doubling the pace of the mass perfume industry – data from Euromonitor predicts the premium segment will grow by 89% by 2027. Larissa explains that while niche perfumery is part of artistic perfumery, not all artistic perfumes are niche. Artistic perfumery focuses on originality and creativity, while niche perfumery emphasizes high-quality ingredients and bold compositions.
According to the co-founder of the first Brazilian brand to be a finalist at The Art and Olfaction Awards, Amyi’s philosophy is to offer fragrances crafted with creative freedom, using rare and noble ingredients, many of which are new to Brazil. One of Amyi’s key differentiators is the “Amyi Experience,” which offers a guided perfume testing, helping to break the stigma that “a good perfume is an imported one.” The brand values Brazilian identity, reflected in the talent and creativity of Brazilian perfumers. “There are more astronauts in the world than perfumers, and 10% of them are Brazilian!” Larissa states.
“A movement has begun, and with the building of a strong high-end perfume segment in Brazil, we believe the great opportunity is to win over the noses of perfume lovers worldwide. The international market is premium, and to this day, the rest of the world knows very little about Brazilian perfumes. Amyi was born to change that. Our dream is to be the most recognized Brazilian perfume brand in the world,” concludes Larissa, who will be representing the brand at ScentXplore.
Fábio Condé, founder & perfumer, CONDÉ PARFUM
Fábio Condé, founder and perfumer of CONDÉ PARFUM, describes the Brazilian niche perfumery market as promising, despite being a relatively new industry. He highlights the richness of raw materials and the creativity of the Brazilian people as key ingredients for success. “The philosophy of Condé Parfum is to bring high-quality perfumery with international standards, affordable prices for Brazilians, and most importantly, original fragrances. A truly independent perfumery that seeks to innovate and offer new olfactory experiences to the consumer,” says Condé.
According to Condé, the main challenge for Brazilian niche brands is proving that national perfumery has the same quality as international brands, in the face of a culture that tends to value foreign products more. Additionally, the domestic market struggles with a lack of proper materials and machinery, as well as a high tax burden. However, Condé is optimistic and foresees significant recognition in the next 10 years, both in Brazil and abroad. “Perfume lovers are always open to new brands. And Brazil has that ‘je ne sais quoi’ of being exotic, which we can use to our advantage.”
To convince consumers to invest in national fragrances, Condé believes it’s necessary to highlight the brand’s recognition abroad and educate the public about the quality of its products, with top-tier ingredients, skilled professionals, and impeccable customer service. “It’s a slow process, like the work of an ant, as we’re gradually earning the trust of consumers. They need this knowledge to feel confident investing their money,” wraps up the founder and perfumer.
Fábio Ottaiano, founder, LENVIE
Fábio Ottaiano, founder of LENVIE, sees the niche perfumery market in Brazil as an emerging sector with great growth potential. “My initial assessment is that it’s still in its early stages in Brazil. It’s a new market, with few players, and still developing.” Fábio highlights that the country, with its passion for perfumes, has both the quality and creativity needed to drive this segment forward. However, he acknowledges the need to improve distribution and market understanding of niche perfumery.
Fábio emphasizes that creative artistry is at the heart of the brand. “The main philosophy at Lenvie is artistic creation. For us, artistic creation means working more freely, without always being guided by market research or trends in advance.” Lenvie values freedom in its fragrance development process, allowing the creative team to decide what to launch instead of following market trends. Fábio believes this approach results in high-quality products and distinctive fragrances, showcasing the brand’s expertise in the industry.
According to Fábio, one of the main challenges for a local niche perfume brand is reeducating the consumer. “I see that Brazilians are very interested, curious, and indeed appreciate Brazilian perfumery. I feel more and more – looking at Lenvie –that the perception of national industry and creation has changed significantly. There’s a much greater focus on local work nowadays. We’re starting to see a wave of recognition and respect for the artistic work of Brazilian perfumery, which is still in its early stages but has plenty of room to grow,” he concludes.
Eduardo Santos, founder, PARUM SÃO PAULO
Eduardo Santos, founder of PARUM SÃO PAULO, sees niche perfumery as an evolving sector in Brazil, where the shift from a market dominated by mass-produced and imported products is creating space for new ideas. “Brazil is a unique country and forges its own paths, and perfumery is no different.” Eduardo notes that while natural perfumery has a historical presence in the country, the arrival of world-class raw materials is enabling the rise of a new wave of niche perfumery.
Parum’s philosophy is centered on small-batch production and creating products that establish personal connections with customers. Eduardo explains: “Parum is a Latin word used to describe something in small quantity, somewhat insufficient, which alludes to the size of the batches we produce in fine perfumery.” The brand stands out for its use of natural essential oils and its independent approach, far from large corporations, offering a more personalized and intimate service.
Eduardo sees the main challenge for niche brands as the need to stand out in a saturated market and face issues related to entrepreneurship. “The problems are generally tied to entrepreneurship, as the country is not prepared to support small businesses.” Eduardo believes there will be an increase in the number and consolidation of niche brands in the coming years, with the potential for success outside Brazil as awareness of the quality and exclusivity of Brazilian perfumery grows.
Leonardo Fioretti, founder, VIKING
Leonardo Fioretti, founder of VIKING, sees Brazilian niche perfumery as promising. “For some years now, we’ve seen a few brands take on the challenge of bringing projects that blend Brazilian personality and culture with trends in high-end perfumery. This distinctive approach has been a good start in opening consumers’ minds to new possibilities. And the growth of this niche shows that it truly deserves attention,” says Leonardo. Despite lingering prejudice against national perfumery, he believes in its great potential, both domestically and internationally.
This market holds vast potential, especially because, in this niche status, brands can work more freely with their creations and explore various possibilities. According to Leonardo, “When we see an idea or a more established, bold, and distinctive proposal in the perfumery segment, it grabs the public’s attention and, consequently, that of big brands, which, due to their wide reach, aren’t able to take as many risks. They often create sub-brands or follow smaller brands until it becomes safe to operate in that segment.”
Leonardo identifies educating the public and breaking down prejudices about national perfumery as the biggest challenge for niche brands. However, he sees this creative freedom as a major opportunity. “The most important factor is the ability to educate consumers about the depth of perfumery and the characteristics that truly differentiate one product from another, breaking down established biases. From there, we can build a narrative and sell the status that the fragrance delivers to them,” Leonardo wraps up.
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