Restrictive Requirements for Imports

OTA estimates total organic market consumer sales of Brazil at about $100 million USD per year.

 

  • The total market size for organic packaged food and beverages in Brazil in 2015 is US$79.2mn, making it the 25th largest market in the world by value.
  • Per capita spending on organic packaged food and beverages in Brazil is US$0.40, which ranks as the 40th largest spending per capita in the world.
  • The largest company by sales in organic packaged food and beverages is Usina São Francisco SA, which maintains 16.5% of total sales. It is followed by Cooperativa dos Citricult and CIA Orgânica de Café.
  • Organic packaged food and beverages in Brazil will see strong year-on-year growth of close to 10% in 2015. This is much higher than the rest of the Latin America region, which will experience approximately 4% year-on-year growth in 2015.
  • Brazil maintains a market size for organic packaged food and beverages of US$79.2mn in 2015, which is 0.2% of global category sales.
  • Within the Latin America region, only Mexico surpasses Brazil in total value sales of organic packaged food and beverages.
  • Brazil will experience moderate forecast growth of sales of organic packaged food and beverages, at 7.8% from 2015–2020.

QUALITATIVE ANALYSIS

Quick Facts

  • The total market size for organic packaged food and beverages in Brazil in 2015 is US$79.2mn, making it the 25th largest market in the world by value.
  • Organic products surprisingly have a negative image in Brazil, where most consumers perceive them to taste bad.
  • The organic packaged food and beverage market is expected to remain a niche market for specialized domestic manufacturers. 

Market Trends

Competitive Landscape

  • The organic packaged food and beverage competitive landscape is relatively fragmented. Cia Brasileira de Distribuição, with its private label Taeq, is the leading company in organic packaged food, with a 7% value share in 2014.
  • Usina São Francisco ranked first within organic beverages, with a value share of 33% due to its wide product portfolio that includes chocolate-based flavored powder drinks, fresh ground coffee, and fruit/vegetable juice under the Native brand.

Prospects and Growth Opportunity

  • Organic packaged foods are considered unattractive and poor-tasting by many consumers, as are health and wellness varieties in general. This issue is challenging, but if companies are willing to invest heavily in advertising and education campaigns, they can reverse this misunderstanding.
  • Cia Brasileira de Distribuição is paying considerable attention to organic packaged food as a growth strategy and is expected to remain the largest manufacturer of organic packaged food for the near term. 
  • Organic beverages are expected to remain a niche area for domestic companies because multinationals tend to concentrate resources in the largest areas within health and wellness beverages, such as naturally healthy and fortified/functional beverages.
     

General Health & Wellness Trends

QUANTITATIVE ANALYSIS

Organic packaged food & beverage data

 

Data type

2012

2013

2014

2015

2016

2017

2018

CAGR
(12-15)

CAGR
(15-18)

 

 

 

 

 

 

 

 

 

 

Health & wellness products consumption

19,228.1

21,593.1

24,357.9

27,465.5

29,225.3

31,078.4

32,978.1

12.6%

6.3%

Organic packaged food and beverages consumption

47.2

58.0

68.0

79.2

86.1

93.3

100.4

18.8%

8.2%

Organic packaged food consumption

20.3

27.1

33.2

39.8

44.1

48.5

52.8

25.2%

9.9%

Organic beverages consumption

26.9

30.9

34.8

39.4

42.0

44.7

47.6

13.6%

6.5%

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

0.2%

0.3%

0.3%

0.3%

0.3%

0.3%

0.3%

-

-

 

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Economic & demographic data

 

Data type

2012

2013

2014

2015

2016

2017

2018

 

 

 

 

 

 

 

 

Total population

198.7

200.4

202.0

203.7

205.2

206.8

208.2

% Middle and upper class of total population

26.6%

26.5%

26.4%

26.4%

26.4%

26.3%

26.3%

% Population aged 65+

7.3%

7.5%

7.8%

8.0%

8.3%

8.6%

8.9%

% Population aged 0-14

24.5%

24.0%

23.6%

23.2%

22.7%

22.3%

21.8%

% Population with higher education degrees

9.3%

9.5%

9.7%

9.9%

10.0%

10.2%

10.4%

Average number of children per household

1.0

1.0

1.0

0.9

0.9

0.9

0.9

GDP per capita

7,269.5

7,973.3

8,458.9

8,706.6

8,366.4

8,335.5

8,463.8

Consumer expenditure per capita (US$)

4,340.1

4,776.8

5,129.0

5,380.6

5,220.4

5,267.0

5,343.7

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

685.6

750.0

800.5

834.5

804.2

805.6

811.2

 

Retailer & urban area data

 

Data category

Rank

Urban Area/retailer

Population 
(mns)

 

 

 

 

Top urban areas by population (2015)

1

São Paulo

20.9

Top urban areas by population (2015)

2

Rio de Janeiro

12.5

Top urban areas by population (2015)

3

Belo Horizonte

5.3

Top urban areas by population (2015)

4

Brasília

4.3

Top urban areas by population (2015)

5

Porto Alegre

4.1

Top grocery retailers by sales (2015)

1

Carrefour

-

Top grocery retailers by sales (2015)

2

Extra

-

Top grocery retailers by sales (2015)

3

Walmart Supercenter

-

Top grocery retailers by sales (2015)

4

Pão de Açúcar

-

Top grocery retailers by sales (2015)

5

Dia

-

USDA GATS data

Rank

2015

2014

2013

2012

1

Berries

Carrots

Carrots

Carrots

2

Grapefruit

-

Grapes

Cherries

3

Tomato Sauce

-

Onions

-

4

Coffee Roast

-

Tomato Sauce

-

Policy Information

Government Agency(s)/Competent Authority

Authorized Government Agency(s): 

Ministério da Agricultura, Pecuária e Abastecimento

Agency(s) Contact Information: 

Ministério da Agricultura, Pecuária e Abastecimento (MAPA)

Address: Esplanada dos Ministérios Bloco D - Anexo B -Térreo Caixa Postal 02432 CR-MAPA,
CEP: 70043-900, Brasília - DF
Telephone: 0800 704 1995
Fax: (+55) 0XX61 3218-2401
Web
Organic Agriculture Portal

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard: 

The legal framework for organic foods in Brazil may be found under Ministério da Agricultura, Pecuária e Abastecimento (MAPA):
Instrucao Normativa n° 7, May 17, 1999;
Lei n° 10.831, December 23, 2003; (in Portuguese)
Decreto n° 6323 of December 27, 2007;  (.pdf in English) and
Instrucao Normativa n° 16 of June 11, 2004.

Legislation for rules for organic cotton products can be found in Instrução Normativa nº 23 (in Portuguese), published in the Diário Oficial da União - Seção 1, June 2, 2011, page 30.

Brazilian Organic Laws as of July 2016:

Decree No. 6,913 - 2009
Phytosanitary Products with Approved Use for Organic Agriculture (.pdf in English)
 
Joint Normative Instruction No. 1 - 2011
Phytosanitary Products Approved for use in Organic Agriculture (.pdf in English)
 
Joint Normative Instruction  No. 2 - 2011
Reference Specifications of Phytosanitary Products Approved for Use in Organic
Agriculture (.pdf in English)
 
Joint Normative Instruction MAPA-MMA  No. 17 - 2009
Products from Organic Sustainable Extractivism (.pdf in English)
 
Joint Normative Instruction MAPA-MS  No. 18 - 2009
Processing, Storage and Transport of Organic Products (.pdf in English)
 
Interministerial Normative Instruction MAPA-MS No. 24 - 2011
Food Additives in  Plant and Animal Origin Organic Products Processing (.pdf in English)
 
Interministerial Normative Instruction MAPA-MPA No. 28 - 2011
Organic Aquaculture Production Systems (.pdf in English) 
 
Normative Instruction No. 19 - 2009
Organic Quality Control and Information Mechanisms (.pdf in English)
 
Normative Instruction No. 23 - 2011
Technical Regulation for Organic Textiles Derived from Cotton (.pdf in English)
 
Normative Instruction No. 37,  2011  
Edible Mushroom Production in Organic Production Systems (.pdf in English)
 
Normative Instruction No. 38 - 2011  
Seed and Seedling Production in Organic Production Systems (.pdf in English)
 
Normative Instruction No. 46 - 2011
Organic Systems of Animal and Plant Production (.pdf in English)
 
Normative Instruction No. 50 - 2009  
Official Seal of the Brazilian Organic Conformity Assessment (.pdf in English)
 
Normative Instruction No. 54 - 2008  
Structure, Composition and Responsibilities of the Organic Production Commissions (.pdf in English)

Instrução Normativa Nº 13, de 28 de maio de 2015 (CPOrg e STPOrg) (.pdf in Portuguese): Establishes the structure, the composition and the Thematic Subcommittee Assignments for Organic Production (STPOrg), Structure, Composition and Duties of Committees of Organic Production in the Federation Units (CPOrg-UF), and the guidelines for preparation of their internal regulations.

Date of Implementation: 

2003

Regulation and/or Standard Scope: 

The regulations contain the standards for production, classification, processing, packaging, importation, distribution, identification, and certification of the quality of organic products, of both animal and plant origin.

The decree allows family farmers to make direct sales to consumers provided they have a registration with the regulatory body. In the event of a direct sale, no certification is needed = Participatory Guarantee System (PGS). Textile products from organic cotton were added in June 2011.

Imported Products Requirements

Imported Products: 

The system of evaluation of organic products' conformity changed January 1, 2011. From this date, all organic products sold in Brazil, including those imported, must be certified by an organization registered at the Federal Agency INMETRO (Accreditation Body approved by the Brazilian government) and the Ministry of Agriculture (MAPA). All operators interested in exporting to the Brazilian market should therefore ensure that as of the 1st of January 2011 their Certification Body has received this registration both at the INMETRO agency and at the Brazilian Ministry of Agriculture.

Certification and Accreditation

Certification: 

Producers must choose one of these methods in order to sell organic products:
- Obtain certification by a body of Organic Conformity Assessment (CABs) accredited by the Ministry of Agriculture, Livestock and Supply - MAPA; or
- Register with MAPA to conduct direct sales without certification (primarily for those in the participant guarantee system). Only organic products that will be sold directly to the consumer will not need third-party certification.

A list of accredited certifiers is available online as part of the National Register.

Accreditation Method: 

Government

Accreditation: 

Ministério da Agricultura, Pecuária e Abastecimento
Certification and Accreditation information

Additional Information

Additional Information: 

USDA's GAIN Report Market Fact Sheet (2016)
USDA's GAIN Report Brazil Food and Agricultural Import Regulations and Standards - Narrative (2017)
USDA's GAIN Report Brazil Exporter Guide (2016)
USDA's GAIN Report Brazil Retail Foods (2016)

Definitions

Review definitions of terminology included in this website.