Value Chain Definition on the Consumer Home Care Goods in Brazil.

The value chain of the Consumer Home Care Goods industry in Brazil is a complex network of interconnected activities that transform raw materials into finished products, making them available to final consumers for use in their homes. This chain involves multiple steps, each with distinct activities, segments, and players. Understanding this value chain is crucial for analyzing the industry's dynamics, identifying key actors, and evaluating its economic significance in the Brazilian market.

Value Chain outline

The value chain for Consumer Home Care Goods in Brazil can be broadly outlined in the following steps:

1. Raw Material Sourcing and Production: This initial step involves the extraction, processing, and production of the fundamental materials required to manufacture home care products.
2. Manufacturing and Formulation: This step encompasses the industrial processes where raw materials are combined and transformed into finished consumer home care goods.
3. Packaging Production: A crucial parallel step involving the manufacturing of containers and wrapping materials for the finished products.
4. Distribution and Logistics: This involves the movement, storage, and transportation of finished goods from manufacturing plants to various points of sale.
5. Retail and Sales: The stage where products are offered and sold to individual consumers.
6. Consumption: The final stage where consumers purchase and utilize the home care products in their households.

Identification and description of each step in the value chain.

1. Raw Material Sourcing and Production

• Identification and description of segments for each step of the value chain: This step involves various segments based on the type of raw material. Key categories include chemical inputs (surfactants, builders, enzymes, fragrances, colorants, disinfectants, etc.) and natural resources (plant-based oils, minerals).
• List of types of players in each segment:
  • Chemical Manufacturers/Suppliers (local and international).
  • Producers of Natural Ingredients.
  • Mining Companies (for minerals like clays or abrasives).
  • Agricultural Producers (for plant-based inputs).
• Detailed description of the main activities within each segment:
  • Chemical Inputs: Research and development of new chemicals; large-scale synthesis and production of various chemical compounds used in cleaning formulations; quality control of chemical properties; packaging and transportation of chemicals to manufacturing plants.
  • Natural Ingredients: Cultivation or extraction of natural resources; processing and purification of natural materials for industrial use; ensuring sustainability in sourcing.
  • Minerals: Extraction of minerals; processing and refining minerals to meet purity standards for product formulations.
• List examples of key players with detailed profiles:
  • Basequímica: A company with over three decades of experience in the transport and storage of chemical raw materials, serving the cleaning products industry in Brazil. They emphasize efficient logistics and a qualified team to meet industrial demands across the country.
  • Barbarex: A distributor of chemical products for cleaning, strategically located in the Campinas region of São Paulo, facilitating distribution across Brazil. They supply various chemicals needed for cleaning product formulations.
  • Mundial Química do Brasil: Focused on providing high-quality products for cleaning, hygiene, and disinfection for over 40 years. They highlight quality, certifications, and cost reduction through their products.
  • Silver Chemical: A factory of chemical products for cleaning, serving various regions in Brazil.

2. Manufacturing and Formulation

• Identification and description of segments for each step of the value chain: Segments within manufacturing are often defined by the type of home care product manufactured, such as:
  • Laundry Care (detergents, softeners, bleach).
  • Surface Care (multipurpose cleaners, disinfectants, floor cleaners).
  • Dishwashing (manual and automatic dish soap).
  • Toilet Care.
  • Air Fresheners and Insecticides.
  • Specialty Cleaners.
• List of types of players in each segment:
  • Multinational Corporations with local manufacturing facilities.
  • Large National Companies.
  • Medium and Small-sized Local Manufacturers.
  • Contract Manufacturers (producing for other brands).
• Detailed description of the main activities within each segment:
  • Research and development of new product formulations and improving existing ones.
  • Sourcing and quality control of raw materials.
  • Mixing and chemical processing of ingredients according to formulations.
  • Production line management and automation.
  • Quality control of finished products to ensure efficacy and safety.
  • Packaging of products into various containers.
  • Inventory management of finished goods.
  • Adherence to regulatory standards (ANVISA, ABNT).
• List examples of key players with detailed profiles:
  • Unilever Brasil: A major multinational player with a significant presence in the Brazilian home care market, offering a wide range of products across different segments. Known for brands like Omo, Comfort, and Brilhante.
  • Procter & Gamble (P&G) Brasil: Another multinational giant with a dedicated "Cuidados com o Lar" (Home Care) business unit. They market popular brands such as Ariel, Downy, and Mr. Clean (Mr. Músculo in Brazil).
  • Bombril: A traditional Brazilian company known for steel wool and expanding its portfolio to various cleaning products.
  • Ypê: A prominent Brazilian manufacturer offering a diverse range of home care products, including detergents, softeners, and cleaning fluids.
  • Flora: A Brazilian company that owns popular home care brands like Minuano, Assim, and Brisa. They conduct research on consumer habits and adapt their product offerings.

3. Packaging Production

• Identification and description of segments for each step of the value chain: This step focuses on the production of various packaging types essential for home care goods, including:
  • Plastic Bottles and Containers (HDPE, PET).
  • Flexible Packaging (pouches, films).
  • Labels and Sleeves.
  • Closures (caps, pumps).
  • Cardboard Boxes and Corrugated Packaging for transport.
• List of types of players in each segment:
  • Plastic Packaging Manufacturers (Blow Molding, Injection Molding).
  • Label and Printing Companies.
  • Closure Manufacturers.
  • Cardboard and Paper Packaging Manufacturers.
• Detailed description of the main activities within each segment:
  • Designing and developing packaging solutions that are functional, visually appealing, and meet safety and environmental standards.
  • Sourcing raw materials (plastic resins, paper, ink).
  • Manufacturing packaging components using various processes (e.g., blow molding for bottles, injection molding for caps).
  • Printing labels and applying them to packaging.
  • Quality control of packaging integrity, size, and labeling.
  • Delivering packaging materials to the manufacturing plants.
• List examples of key players with detailed profiles:
  • Proplast Embalagens: Specializes in developing plastic packaging for hygiene and cleaning, among other sectors, offering blow molded and injected solutions across Brazil. They focus on innovation and quality, providing services like in-mold labeling.
  • Saviplast: An industry specializing in plastic packaging since 1982, known for blow molding processes and serving the domissanitários (cleaning products) market in addition to others. They emphasize technology, quality, and punctuality in delivery.
  • IGP Indústria de Garrafas Pet: A company focused on the manufacturing of PET bottles, relevant for certain types of cleaning product packaging.
  • Soffiare Embalagens Plásticas: Acts as a thermoplastic transformer in the blow molding packaging market, serving the domissanitários sector with exclusive projects and a focus on quality and environmental responsibility (recycling residues).

4. Distribution and Logistics

• Identification and description of segments for each step of the value chain: This step involves moving products from factories to points of sale and includes various channels:
  • Wholesale Distribution (selling in bulk to retailers).
  • Retail Distribution Centers (managed by large retail chains).
  • Specialized Home Care Distributors.
  • Logistics Operators (providing transportation and warehousing services).
  • E-commerce Fulfillment Centers.
• List of types of players in each segment:
  • Wholesalers and Atacadistas.
  • Large Retail Chains with their own distribution networks.
  • Third-Party Logistics (3PL) Providers.
  • Specialized Distributors for specific product categories or regions.
• Detailed description of the main activities within each segment:
  • Receiving finished goods from manufacturers.
  • Warehousing and inventory management.
  • Order picking and fulfillment for retailers.
  • Transportation of goods via road, rail, or other means across the country.
  • Managing logistics to ensure timely and efficient delivery.
  • Breaking down large shipments into smaller quantities for retailers (in wholesale).
• List examples of key players with detailed profiles:
  • Barbarex distribuidora: As mentioned earlier, also acts as a distributor of chemical products for cleaning to various regions in Brazil.
  • Mundial Distribuidora: Distributes cleaning products in wholesale and retail, serving several cities and regions in Brazil. They offer a wide variety of products and equipment.
  • Terra Brasil Limpeza: Focused on the distribution and trade of hygiene and cleaning products and materials for retail, serving service providers, businesses, and condominiums.
  • Nobre Cestas: An atacado (wholesale) supermarket that includes a wide selection of cleaning products in its offerings, emphasizing quality and low prices.
  • Br Supply: A corporate supplies company offering solutions in hygiene, cleaning, and other categories, serving the corporate market. Their focus is on providing multiple solutions for businesses.
  • Onixlimp: A distributor of professional cleaning products and utensils, including brands like SC Johnson, serving the entire Brazil.

5. Retail and Sales

• Identification and description of segments for each step of the value chain: This step involves the various channels through which consumers purchase home care goods:
  • Supermarkets and Hypermarkets.
  • Atacarejos (Hybrid wholesale/retail).
  • Neighborhood Markets and Smaller Grocery Stores.
  • Specialized Cleaning Product Stores.
  • Pharmacies (for certain hygiene-focused products).
  • E-commerce Platforms (retail websites, marketplaces).
  • Direct Sales.
• List of types of players in each segment:
  • Large Retail Chains (e.g., Grupo Carrefour, GPA, Assaí, Atacadão).
  • Regional Supermarket Chains.
  • Independent Grocery Stores.
  • Online Retailers.
  • Franchises (some specialized cleaning stores).
• Detailed description of the main activities within each segment:
  • Purchasing products from manufacturers or distributors.
  • Managing store inventory and stock rotation.
  • Product placement and merchandising on shelves (gondolas).
  • Pricing and running promotions to attract customers.
  • Providing customer service.
  • Operating online sales platforms and managing deliveries (in e-commerce).
• List examples of key players with detailed profiles:
  • Large Supermarket Chains: While not exclusively home care players, major supermarket chains like Carrefour Brasil, GPA (Pão de Açúcar, Extra), Assaí Atacadista, and Atacadão are key points of sale for consumer home care goods, representing a significant portion of retail sales. Atacarejos, in particular, have seen growth in the cleaning product segment.
  • Neighborhood Markets: Smaller, local markets play a role in providing convenient access to essential home care products.
  • E-commerce Platforms: Various online retailers and marketplaces offer home care products, reflecting the growing trend of online shopping.

6. Consumption

• Identification and description of segments for each step of the value chain: This step involves the final consumers and their diverse needs and behaviors related to using home care products. Segments can be based on:
  • Household Size and Composition.
  • Income Levels (influencing choice between economy, mid-range, and premium products).
  • Specific Cleaning Needs (e.g., pet owners, families with children, individuals with allergies).
  • Preferences (e.g., scent preferences, demand for sustainability, desire for practicality/multifonctionality).
  • Geographic Location (influencing product suitability and availability).
• List of types of players in each segment:
  • Individual Households.
  • Small Businesses (consuming products for their own cleaning needs).
• Detailed description of the main activities within each segment:
  • Identifying cleaning needs and desired product attributes.
  • Making purchasing decisions based on factors like price, brand, efficacy, and personal preferences.
  • Using products according to instructions for cleaning and hygiene tasks.
  • Disposing of product packaging and waste.
  • Providing feedback (directly or indirectly through purchasing patterns) to retailers and manufacturers.
• List examples of key players with detailed profiles:
  • Brazilian Households: Represent the vast majority of consumers, with diverse purchasing habits and preferences influenced by income, regional factors, and lifestyle. Recent trends show a continued focus on hygiene post-pandemic and a sensitivity to price, leading to exploration of different brands and product formats. There's also a growing interest in practicality and multi-functional products.

Show estimates of volumes and sizes of each step in the value chain.

Providing exact volume and size estimates for each specific step of the value chain (e.g., the total market value of just the chemical inputs used by the home care industry, or the revenue generated solely by home care distributors) is challenging with publicly available data, which often focuses on the overall market or retail sales.

However, the available data provides a strong indication of the overall industry size and key areas of value:

• Overall Market Size (reflecting manufacturing output value and retail sales value): The Brazilian home care goods market (saneantes) is the 4th largest globally.
  • In 2023, the sector's revenue reached US$ 7.5 billion, an increase from US$ 7 billion in 2022. This also corresponds to approximately R$ 38.5 billion annually.
  • Projections suggest continued growth, with the market expected to reach US$ 9.3 billion by 2027/2028, a projected growth of around 35% from current levels.
• Production Volume: The production of cleaning products in Brazil grew by 5.6% in 2023. Certain categories saw notable growth in production, such as bathroom cleaners (+10.6%), laundry detergents (+4.4%), multi-purpose cleaners (+4.1%), disinfectants (+4%), and softeners (+0.9%).
• Retail Sales: The value of the overall market is largely reflected in retail sales. The cleaning products basket represents about 6% of consumer spending. While physical stores (supermarkets, neighborhood markets) still account for the majority of purchases (83% in a 2023 survey), e-commerce is a growing channel. Atacarejos are also becoming increasingly important for home care purchases.
• Informal Market: The informal market for household cleaning products represents a significant portion, estimated at 11% of the domestic cleaning market and 17% of the professional cleaning market in 2023. This impacts the formal market's overall volume and value.

It is important to note that the US dollar figures are influenced by currency exchange rates. The R$ 38.5 billion figure provides a value in local currency, more reflective of the internal market size in Brazil.

Estimating the precise value or volume handled at the raw material sourcing or distribution steps specifically for the home care industry is difficult without dedicated studies focusing on the economics of each stage of the supply chain. The overall market value captures the culmination of value addition across these steps.

Value Chain Summary Table

Value Chain Step	Main Activities	Segments (Examples)	Types of Players (Examples)	Key Players Mentioned (Examples)	Estimated Volume/Size (Based on available data)
Raw Material Sourcing	Extraction, processing, production of inputs; Quality control; Transportation.	Chemical Inputs, Natural Ingredients, Minerals.	Chemical Manufacturers/Suppliers, Natural Ingredient Producers.	Basequímica, Barbarex, Mundial Química do Brasil, Silver Chemical.	Contributes to the final product cost/value; specific market size for home care raw materials not clearly quantified in available data.
Manufacturing & Formulation	R&D, Sourcing, Mixing, Production, Quality Control, Packaging, Inventory.	Laundry Care, Surface Care, Dishwashing, Toilet Care, Air Care, Specialty Cleaners.	Multinational Corporations, National Companies, Local Manufacturers.	Unilever Brasil, P&G Brasil, Bombril, Ypê, Flora (Minuano, Assim, Brisa).	Production grew 5.6% in 2023. Value reflected in overall market size (US$ 7.5 billion in 2023).
Packaging Production	Design, Material Sourcing, Manufacturing (bottles, labels), Quality Control.	Plastic Packaging (bottles, films), Labels, Closures, Cardboard.	Plastic Packaging Manufacturers, Label Companies.	Proplast Embalagens, Saviplast, IGP, Soffiare.	Contributes to product cost/value; specific market size for home care packaging not clearly quantified in available data.
Distribution & Logistics	Movement, Storage, Transportation, Order Fulfillment, Inventory Management.	Wholesale, Retail Distribution Centers, Specialized Distributors, Logistics Operators.	Wholesalers, Retail Chains (with own logistics), 3PL Providers, Specialized Distributors.	Barbarex (distributor), Mundial Distribuidora, Terra Brasil Limpeza, Nobre Cestas, Br Supply, Onixlimp.	Facilitates product flow; costs embedded in retail prices; specific market size for home care distribution services not clearly quantified.
Retail & Sales	Purchasing from distributors, Inventory, Merchandising, Pricing, Sales, E-commerce.	Supermarkets/Hypermarkets, Atacarejos, Neighborhood Markets, E-commerce, Pharmacies.	Large Retail Chains, Independent Stores, Online Retailers, Franchises.	Carrefour Brasil, GPA, Assaí, Atacadão (as sales points); various online retailers.	Represents the point of final sales value. Overall market value US$ 7.5 billion in 2023, projected US$ 9.3 billion by 2027/2028.
Consumption	Identifying needs, Purchasing, Product usage, Waste Disposal.	Households (by income, size, needs), Small Businesses.	Individual Consumers, Small Business Owners.	Brazilian Households.	Consumers spend ~6% of their budget on cleaning products. Driving force behind market demand and trends.

Examples of Main Players

Here are profiles of a few key players across different steps of the value chain, based on the available information:

• Unilever Brasil (Manufacturing): A major multinational consumer goods company with a strong presence in the Brazilian home care market. They operate local manufacturing facilities and have a vast portfolio of well-known brands like Omo (laundry detergent), Comfort (fabric softener), and Cif (surface cleaner). Unilever invests in R&D to develop new formulations and adapt products to local consumer needs and preferences.
• Procter & Gamble (P&G) Brasil (Manufacturing): Another global leader in consumer goods, P&G has a dedicated Home Care business unit in Brazil. They are responsible for popular brands such as Ariel (laundry detergent), Downy (fabric softener), and Mr. Clean (Mr. Músculo - multi-purpose cleaner). P&G focuses on brand building, product innovation, and extensive distribution networks.
• Ypê (Manufacturing): A significant national player in the Brazilian home care market. Ypê offers a wide range of cleaning products, including detergents, soaps, softeners, and disinfectants. As a strong national brand, Ypê has widespread recognition and distribution across the country, competing directly with multinational corporations.
• Basequímica (Raw Material Sourcing/Supply): This company plays a vital role in supplying chemical raw materials to the cleaning products industry in Brazil. With extensive experience in transportation and storage, Basequímica supports manufacturers by ensuring the availability and efficient delivery of necessary chemical inputs.
• Mundial Distribuidora (Distribution): Operates in the distribution of cleaning products, serving both the wholesale and retail sectors across various regions in Brazil. They act as an intermediary, connecting manufacturers to numerous points of sale and ensuring product availability for retailers and, in some cases, direct consumers.
• Proplast Embalagens (Packaging Production): Specializes in the manufacturing of plastic packaging specifically for the hygiene and cleaning sector in Brazil. They provide essential packaging solutions like bottles and containers to manufacturers, focusing on quality, innovation, and customization.

Volumes and Sizes

The Brazilian Consumer Home Care Goods market is substantial and holds the position of the 4th largest globally.

• In 2023, the sector's total revenue reached US$ 7.5 billion. This represents a growth of 5.6% in production compared to 2022.
• In local currency, the annual value of the sector is approximately R$ 38.5 billion.
• Future projections indicate continued expansion, with the market expected to grow by around 35% and reach approximately US$ 9.3 billion by 2027/2028.
• While specific volume data for each product category across the entire value chain is not readily available, the market size figures highlight the overall economic activity driven by manufacturing and retail sales.
• Retail sales are a major component of the market value. The cleaning products basket accounts for approximately 6% of household expenditures in Brazil.
• Supermarkets and hypermarkets are the primary retail channels, but atacarejos are gaining market share for cleaning products purchases.
• The informal market, while decreasing, still represents a notable portion of the domestic cleaning sector (11%), impacting the formal market's overall volume and value.

Market share data for individual companies at a granular level across all segments and steps of the value chain is typically found in proprietary market research reports and was not exhaustively available in the searched public sources. However, companies like Unilever and P&G are generally understood to hold significant market shares in various home care categories in Brazil.

References

• Anuário ABIPLA 2024: setor de produtos de limpeza cresce 5,6%. https://abipla.org.br/anuario-abipla-2024-setor-de-produtos-de-limpeza-cre