26
Cosmetics and Toiletries April 2014
Cosmetics and Toiletries April 2014
Colombian Exports
Cosmetics and Toiletries
Key Points
Main Destinations
Main Products
INDEX
Investment Opportunities
Opportunities
*Non mining segment does not include green coffee.
The non-mining segment* composed 24% of total Colombian exports in 2012. This represents a 2,3% growth over previous year for 2013.
COLOMBIAN EXPORTS
Source: DANE –MinCIT, Elaboration by Proexport
-
10.000
20.000
30.000
40.000
50.000
60.000
70.000
2010 2011 2012 2013
27.849
43.412 45.870 44.233
11.864
13.503 14.255 14.589
Total colombian exportsFOB USD (millions)
Mining segment Non mining segment
MANUFACTURED EXPORTS 8.361 Million USD
Represents 14% of total exports
57% of non mining exports of the country
MANUFACTURED EXPORTS
Source: DANE –MinCIT, Elaboration by Proexport
Exports by sector
Manufactured 57%
Agribusiness 33%
Apparel
accesories products 9%
Services 1%
The subsector of cosmetics and toiletries exported 916,1 million USD in 2013, exhibiting a growth of 6% over 2012.
COSMETICS AND TOILETRIES EXPORTS
Source: DANE –MinCIT, Elaboration Proexport. NB: Absorbent values are included.
0
200
400
600
800
1000
2010 2011 2012 2013
688,4830,5 864,5 916,1
Cosmetics and toiletries exports FOB USD (millions)
US$ 233,7 26%
US$ 197,8 21,6%
US$ 146,2 16%
US$ 59,9 6,5%
US$ 38 4,1%
US$ 240,7 26,3% TOTAL US$ 916,1
Ecuador
Peru
Venezuela
Mexico
Brazil
Others
Ecuador, Peru, Venezuela, Mexico and Brazil were the main cosmetics and toiletries export destinations in 2013 and share 74,2% of total exports.
US$ million % share
Source: DANE –MinCIT, Elaboration Proexport
COSMETICS AND TOILETRIES EXPORTS
MAIN EXPORT PRODUCTS
0
50.000.000
100.000.000
150.000.000
200.000.000
250.000.000
20122013
The products which increased exports compared to 2012 were: Soaps 23.3%, Perfumes 15,6%, Shampoos for hair 14,1% and Cleaning Products 13,5%
COLOMBIAN OFFER
There are 322 Companies exporting cosmetics and toiletries to 61 countries. Quality and Innovative products like: -Make up -Personal Care Products specially moisturizing, facial care, anti-ageing, firming, gels, moisturizing - Cosmetics with natural ingredients - Products for spas and salons
The cosmetics and toiletries production is one of the sixteen government priority sectors. Thanks to the Productive Transformation Program, the government and the private sector work together in order to achieve the recognition of Colombia in 2032 as a global leader in the production and exports of cosmetics, toiletries and high quality absorbents (based on natural ingredients). Colombia is considered as one of the countries with the highest flower diversity in the planet. Diverse in natural wealth, Colombia has 10% of the natural protected areas of South America.
To support their productive processes, Colombian companies have quality international certifications, such as ISO 9001, INVIMA certifications, BPM and its logistic processes and BASC certifications.
KEY POINTS
VISION FOR THE COLOMBIAN COSMETIC SECTOR
In 2032 Colombia will be recognized as a global leader in production and exportation of cosmetics, household cleaning products and high quality absorbents based on natural ingredients.
Costs and production agility
Quality, beneficial properties an inclusion
of traditional ingredients
Standing in production and
marketing
Sector size
X5 15, 4 thousand million USD Market
Exports
X7 27% of national production is being exported
2007 2009-2012 2013-2019 2020-2032
Incomes Billion USD
3.3 5.1 7.4 15.4
Employment Thousand of employees
24.0 27.1 32.6 46.7
Exports Billon USD
0.6 0.8 1.2 4.2
Focus on Regional Market
Strengthen Regional Leader
Outstand Global Market
High quality products and competitive prices
Value added products orientated to selective consumers.
Differentiate products for costumers looking for natural ingredients and packaging
VISION FOR THE COLOMBIAN COSMETIC SECTOR
Investment Opportunities in Cosmetics and Toiletries
March 2014
Colombia, a strategic partner for investment in cosmetics and toiletries
Installation of research, development and innovation centers.
Establishment of logistic centers and distribution hubs.
Production plants.
Colombia offers a thriving and stable economy that grew 4.3% during 2013, a committed government that supports the private sector and a strong sector
with clear openings for foreign investors.
What does a cosmetic company need to research, produce and supply in the regional market?
Biological diversity and variety of climatic zones. Appropriate legislation, incentives and public support for the sector.
Strategic geographic location. Preferential access to foreign markets. Domestic market growth and a high number of potential consumers. Skilled labor force.
Colombia, an ideal destination for investment in cosmetics and toiletries
• One of the priority areas of the Government and the private sector in Colombia. • Important market growth. • The female labor market is the highest in Latin America.
Leader in biodiversity • Most diverse country per square meter (plants, mammals and birds). • Second largest country in the world with floristic diversity. • Located in the tropics - significant diversity of climatic zones.
Appropriate legislation for the implementation of research and development: • Protection of the intellectual property in accordance with international standards. • Government incentives for the creation and implementation of I+D+i.
Colombia as an ideal export platform: • Trade balance is in surplus for the sector. • 13 free trade agreement, access to more than 2,000 consumers for the sector.
Many multinationals in cosmetics and toiletries have found in Colombia an optimum site to develop their Research and Development projects in the region.
Colombia is the second most diverse country per square meter
9.372
17.144
26.071
51.220
56.215
Argentina
Perú
México
Colombia
Brasil
0,6%
2,1%
3,1%
3,9%
8,6%
México
Argentina
Perú
Brasil
Colombia
Number of plant species known, 2007 Protected areas, % Area Total 2007
With more than 56,000 known plant varieties, of which 18,000 are endemic, Colombia has the second highest biodiversity in the world, according to Earth Trends. It is also home to 8.6% of the nature reserves
and protected areas in South America.
Fuente: Earth Trends
Some of the plants in existence in Colombia with a high potential for sustainable use are: Ipecacuana, Tolu balsam, borojó, gualanday, muña, indigo, achiote, arazá, and seje. For example, asaí, seje, and indigo can be used as colorants, and thus respond to the high demand for finished cosmetics in Europe.
Regional opportunities for investment in R + D + i
Bogotá D.C. R&D centers as a source of industry support: Biotechnology center and CIDBIO bio-industry Network of Universities and Centers generating R+D, such as la Universidad Nacional Largest aromatic and medicinal plant producing region in the country
Medellín / Antioquia Genomic sequencing centers (Colciencias- U. Antioquia) – Biontropic Seed Biofactory for reproduction of plants through biotechnology -Antioquia Technology Park University network with research groups for the cosmetic, agriculture, and pharmaceutics sectors such as the Universidad de Antioquia, the Engineering School of Antioquia, and EAFIT.
Cali / Valle del Cauca R&D centers as a source of industry support: CIAT Network of Universities and Centers generating R+D, such as INBIOTECH
Coffee Triangle Development of National Observatory of Biodiversity project Colciencias Bioinformation Center (under construction) Center for Biodiversity Research and Study (Centro de Investigación y Estudios en Biodiversidad - CIGREB) Network of Universities focusing on biotechnology Permanent Free Trade Zone with availability for establishing biotechnology-based companies producing natural ingredients
Large multinationals have found in Colombia a strategic location to establish their distribution and logistic centers, to
supply both local and international markets…
A competitive location with easy access to markets around the globe
United States
Mexico
Brazil Peru
Ecuador Over 800 weekly direct international flights.
More than 4.500 weekly domestic flights.
Less than 6 hours to the main capital cities in Latin America.
More than 20 different airlines operating in Colombia.
New York 5H35M
Miami 3H00M Caracas
1H20M
Lima 3H00M
Sao Paulo 5H45M
Mexico City 4H45M
Santiago Chile 5H00M
Buenos Aires 6H15M
Los Angeles 8H20M
Toronto 6H05M
Quito 1H30M
Chile Argentina
Canada
Madrid Paris
Frankfurt
Barcelona
Santa Marta Port (Magdalena) Cargo Movement: 6.9 Tons – 23% 8 of the total national movement.146 scheduled shipping routes. Specializing in bulk and refrigerated cargo.
TCBuen Buenaventura Container Terminal (Valle del Cauca), in operation since 2010.
Export logistics capacity with access to two oceans
Cartagena Port (Bolívar) Cargo Movement 2011: 2.8 Million Tons – 8 of the total national movement. 1.424 scheduled shipping routes. 5-time winner of the Prize for the Most Competitive Port in the Caribbean.
Barranquilla Port (Atlántico) Cargo Movement: 4.2 million Tons – 12% of the total national movement. 529 scheduled shipping routes. Multi-purpose Port: 2 docks capable of handling all cargo types.
Buenaventura Port (Valle del Cauca) Main port on the Pacific. (Moves more than 34% of the country's trade) Cargo Movement 2011: 10.1 Million tons. 732 scheduled shipping routes.
Atlantic Ocean Pacific Ocean
Given the local conditions, leading companies have set up their production plants for cosmetics and toiletries in
Colombia.
Competitive work force
•Colombia has the longest workday in the region
•Number of graduates related to the industry
Country Work day Night shift Colombia 6 a.m. to 10 p.m. 10 p.m. to 6 a.m. Mexico 6 a.m. to 8 p.m. 8 p.m. to 6 a.m. Argentina 6 a.m. to 9 p.m. 9 p.m. to 6 a.m. Costa Rica 5 a.m. to 7 p.m. 7 p.m. to 5 a.m. Ecuador 6 a.m. to 7 p.m. 7 p.m. to 6 a.m.
Program No. Graduates 2001-2012 Industrial Engineering and related 69,825 Sociology, social work and related 20,057 Biology, microbiology and related 14,000 Chemical engineering and related 10,037 Chemistry and related 8,787 Agricultural engineering, forestry and related 4,598 Anthropology, liberal arts 2,986 Agronomy and related 7,685 Total 137,975
Source: Colombia - Law 50 of 1990 and Law 789 of 2002. Mexico - Federal Labor Act (1969). Costa Rica: Law 2 of 1943. Ecuador - Labor Code 2005. Argentina: Act 11,544 (1933) and Act 20,744 (1976) Ministry of National Education – Educational Labor Observatory
High domestic consumer market: higher female labor force participation in Latin America
44,29 43,2 42,9 40,6 38,23 38,15
27
Perú Brasil Colombia Chile México Venezuela Argentina
Women in directive positions %, 2013
Source: IMD World Competitiveness Yearbook 2011, OIT 2012
Latin American female population has been exploring in depth the labor market in recent years, and women are staying at home less and less. Colombia is the second country with the highest female labor participation rate within the region.
Regional Opportunities for investment projects in production plants
Medellín/Antioquia: Skilled labor – More than 22 thousand graduates between 2001 and 2012 in careers related to the industry. More than 65 packaging companies. Cali/Valle del Cauca:
Skilled labor – Approximately 14 thousand graduates in the past decade in careers related to the industry. More than 45 packaging companies.
Bogotá D.C.: Skilled labor – More than 52 thousand graduates between 2001 and 2012 in careers related to the industry. More than 200 packaging companies. Companies of Natural Ingredients for cosmetics: •BIORYZ Biovegetal, •Labfarve, •Esko Laboratories, •Tropic Oil, •Neyber Ltd
