Fenchem expands into South America

By Simon Pitman

- Last updated on GMT

Fenchem expands into South America

Related tags South america Americas

China-based ingredients manufacturer Fenchem has announced its expansion into the South America market with the establishment of a new office in St. Pauls, Brazil.

The move will also include a warehouse facility, from which the company says it is able to guarantee fast delivery to customers in both the Brazil market and throughout the South American region.

The company said that the new office and facilities will enable it to make easier contact with existing and potential customers in the region, in turn helping it to promote its business growth with the increasing opportunities that are arising from fast market expansion.

The company said that it would be targeting the South American market with its broad portfolio of ingredients, with a particular focus on silicones, polyquternium series, as well as natural active ingredients such as Vitamin E, Arbutin and Niacinamide.

Chasing fast economic and industry growth

The company noted that recent economic growth had brought the South American region, and specifically Brazil, to the fore in the global market for cosmetics and personal care products.

Indeed, after a sustained period of more than ten years of double-digit growth, during which time it grew by 79% in the period 2006 - 2011, the Brazil market is currently the third biggest in the world and is predicted to reach a market value of $59bn by 2016.

However, in its press statement announcing its South American investment, Fenchem also noted the fact that one of the biggest challenges to penetrating the market is the regulatory environment.

South American regulatory challenges

Strict regulations remain in place to protect national businesses and industries, and this remains the case in Brazil, although in recent years there has been some relaxation to the bureaucratic process, which has seen cosmetic manufacturers such as Lush, The Body Shop, Korres and L’Occitane ramp up their presence there.

Fenchem established its dedicated cosmetics division back in 2010, and has since developed the business with a specific focus on botanical actives, while trying to increase the global footprint of its business.

Much of the company’s expansion has been derived from the massive growth of the domestic China market, but in recent year the company has broadened its footprint in Asia, with a specific focus on the Southeast Asia market.

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