OPPORTUNITIES IN THE BRAZIL FOOD & BEVERAGE MARKET
As the exclusive trade fair for the food and beverage industry in Brazil, ANUFOOD Brazil – powered by Anuga – has established itself as an effective global platform for product launches, new business development and the showcasing of new and innovative products for interested, engaged and qualified F&B buyers and importers.
The Brazilian Economy
The IMF projects economic growth of 3.7% for Brazil in 2021.
Half of Brazil’s population is considered middle class and approximately 16 million are at the top of the social pyramid, the very wealthy consumers.
The Brazilian Institute of Geography and Statistics (IBGE) considers that 69 million households exist in Brazil.
In April 2021, the overall production capacity utilization rate in Brazil reached 82.3%.
F&B Industry in Brazil
The food retail sector saw total revenue of BRL 378.3 billion (US$96 billion) in 2019 – The largest in Latam and the 5th largest in the world.
The F&B industry in Brazil achieved growth of 6.7% in 2019 and 12.8% in 2020. It now accounts for 10.5% of the country’s total GDP.
In 2020, 75% of the F&B industry’s production was consumed internally and 25% was destined for exportation.
Brazil is the world’s 2nd largest exporter of manufactured food & beverage (total volume).
The organics market in Brazil increased its total sales volume by 30% in 2020.
Brazil is the 4th largest consumer of pasta in the world (total volume), and the product can be found in 99.3% of the Brazilian households.
F&B Channels in Brazil - Retail
Brazil has 91,000+ supermarkets (POPs) that are visited daily by over 28 million consumers.
The top 5 supermarket chains in Brazil represent a total revenue of over USD 40 billion. *All 5 supermarket chains visited ANUFOOD Brazil 2020.
Retail channels represent 70% of the total F&B volume in Brazil.
Foodservice represents approximately 30% of the total F&B revenue.
By the year 2025, the retail sales in the packaged food market in Brazil are expected to reach US$117.5 billion, a growth rate of 32.5%.
The five largest food retail chains in Brazil increased their sales by a total of BRL 27.3 billion in 2020 (US$ 5.25 billion).
Supermarket Expansion Tendency: Brazil has gained an additional 1,600 stores (POPs) since 2019.
14 of Brazil’s fastest growing top 20 supermarket chains visited ANUFOOD Brazil 2020.
F&B Channels in Brazil – Food Service
Catering companies in Brazil serve 13 million meals per day and generated a total revenue of over USD$ 5 billion annually (2018).
There are 1.3 million food service operators across Brazil. 73% have only one location.
Brazil has over 31,000 establishments in the hotel industry, offering over 2.4 million beds throughout the country.
F&B Industry Facts – Beverages in Brazil
Brazil is 3rd ranked worldwide in beer production and consumption (behind the USA and China) – Beer sales increased by 20% in Brazil in 2020.
Brazil is the 3rd largest market for alcoholic beverage consumption (behind the USA and China).
Alcoholic beverage consumption increased by 40% in 2020.
Wine sales increased by 29.2% in volume in 2020 – approximately 39% of the wine consumed in Brazil is imported.
Importation of super premium beers increased by 34.2% in the first half of 2020.
Brazil currently has over 1,400 beer manufacturers.
Brazil is the 10th largest consumer of vodka, which is the 5th most consumed alcoholic beverage in the country.
F&B Industry Facts – Importation
Brazil is the 2nd largest importer of olives and olive oil in the world.
Brazil imported 641,000 tons of seafood in 2019 – representing 32% of the total seafood consumption in the country.
Brazil was the 3rd largest importer of Norwegian cod fish in 2020
Top Countries for Seafood Imports
1) Chile; 2) China; 3) Vietnam; 4) Norway; 5) Argentina; and 6) Portugal.
Brazil’s 2019 imports of consumer-oriented food products amounted to US$4 billion.
Agricultural imports reached US$10 billion in 2016.
Retailers have repeatedly told us that imported products are a key differentiator for their stores – Retailers import direct more and more in Brazil.
Brazil Retail Benchmarking Study 2021
Preferences & Priorities – Food & Beverage
Study conducted by Koelnmesse Brazil
65% of the food retailers indicated that imported products are “very important” or “important” for the financial success of their business
72% of the food retailers indicated that wine is “very important” or “important” for the financial success of their business.
98% of the food retailers indicated that healthy food is “very important” or “important” for the financial success of their business.
78% of the food retailers indicated that organic products are “very important” or “important” for the financial success of their business.
87% of the food retailers indicated that “free” products (gluten-free, sugar-free, etc) are “very important” or “important” for the financial success of their business.
77% of the food retailers indicated that F&B products with functional ingredients are “very important” or “important” for the financial success of their business.
75% of the food retailers indicated that they constantly search for new products to include in their stores, to keep up with the latest consumer trends.