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Ecuador Increases Cosmetics Production

Ecuador’s industry and productivity department signed an agreement with Procosméticos in a bid to increase local beauty and cosmetic product production with an eye on substituting imports and boosting exports. The agreement commits the beauty industry in the country to increase production to $54.6 million in 2014 and $64.9 million in 2015. It also establishes a 25% reduction in imports.

One of the main goals is to boost profits in this area of Ecuador's industry. To follow through with the commitment, companies ahd special dispensation for the first trimester of 2014 in order to import products subject to the new regulations RTE INEN 093 and RTE INEN 088. Companies were allowed to import quantities equivalent to historic averages in 2012 and 2013, and the agreement also specifies the commitment of Avon, Belcorp, Quala and Yanbal to use the 100% Ecuadorian alcohol to produce fragrances in the country.

Imported beauty products are included on Ecuador’s foreign trade resolution on a list of products that has to fulfill INEN quality requirements to be commercialized in the country. The regulations mean that, to be sold in Ecuador, these products must list ingredients and must be free of microbiological pollution and bacteria that could cause skin damage.
Peruvian Beauty Exports Increase

Peru’s beauty products exports are expected to rise by 10–12% this year, with growth falling back to 2012 values. The Peruvian Cosmetic and Hygiene Committee (Copecoh) of the Trade Chamber from Lima (CCL) has estimated total exports will rise to $160 million.

Committee president Ángel Acevedo told Peruvian magazine Gestión to expect a rise of 12% in the first semester and a lower increase in the second. The aim remains to hit a figure of $3.5 billion by 2017, although Acevedo recognized the speed of growth had slowed down. The industry saw exports grow by 23% in 2011 and 43% in 2013. He put the deceleration down to import restrictions and the renewed priority given to local industry in countries like Argentina, Bolivia and Ecuador.

Acevedo also highlighted the importance of the beauty and cosmetics sector to the national economy and said Copecoh was turning its attention to Europe in the search for new export markets, with all the quality requirements that may imply.