Brazil's Retail Tissue And Hygiene Market Weakens As Economy Falls

Brazil's economic slowdown is forecast to adversely affect the retail tissue and hygiene market in the country. Inflation rose to more than 7 percent, much higher than the government's target of 4.5 percent, with the country's Central Bank expecting GDP to contract 1 percent in 2015. To curb inflation, the government raised interest rates to 12.75 percent; however, this could push the country into recession. Brazil is the world's fourth biggest retail tissue and hygiene market, providing emerging-market growth for makers, such as Kimberly-Clark and Procter & Gamble. With the economy weakening, however, Brazilian consumers are opting to buy products in bulk packaging from hypermarkets and cash-and-carry stores. Consumers, especially those from the middle class, are the biggest losers in Brazil's spiral down the economic drain.