What started in June as a protest to a BRL 20 cent raise in bus fares served as the spark for the massive flames of protest that engulfed Brazil this Summer. These protests were a manifestation of the growing disappointment in Brazil’s economic performance. Brazil saw GDP growth of 0.9% in 2012, the lowest of the BRICS, and a 0.8% contraction in industrial output.

Nonetheless, with its 190 million people forming one of the most appealing domestic markets in the world, the South American country is far from throwing the towel in the ring. In the last 10 years, somewhere around 30 to 40 million Brazilians have moved up to the middle class, with an income between $500 and $2,000 per month. This translates to new business opportunities.

This report makes the case for a strong future in Brazil’s chemical industry. Despite expensive raw materials and trade deficit of $29 billion in 2012 caused by the lack of high-margin specialty chemicals produced in the country, Brazil’s chemical sector remained the country’s fourth largest contributor to the economy in 2012, with sales of $153 billion.