Brazilian Food Industry Expands in 2020

According to the Brazilian Food Processing Association (ABIA), the food and beverages sector registered annual sales of $152 billion (R$789 billion) in 2020. The industry grew 12.7 percent in nominal terms and 3.3 percent in real terms compared to the previous year. This outstanding result can be attributed to the expressive growth of 16.2 percent in the retail sector and an increase of 11.4 percent in sales to foreign markets. However, the food service sector has dropped by 24.3 percent due to the social distance measures adopted to combat the COVID-19 pandemic. The social distance measures made Brazilians change their habits, which contributed to a higher consumption at home, and thus increasing sales in retail stores.

The COVID-19 pandemic accelerated Brazilian consumers’ trend towards a healthier lifestyle. Companies in Brazil, following international trends, will keep looking to launch products with immunity-boosting benefits. The plant-based products will also see continued growth in the country, with a higher number of products being launched every year. In addition, there is a growing demand for ingredients that allow manufacturers to have products with a “clean” label (with claims like natural, organic, and gluten-free) and clear label (with information about the sourcing of ingredients, the manufacturing process, and more transparency about the ingredients). Therefore, although consumers continue to be price-sensitive and more careful with food purchases, premium products and ingredients with competitive prices, more differentiation, and perceived added-value still have a competitive advantage. Click here to read the full report.

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