• The total market size for organic packaged food and beverages in Brazil in 2017 is US$86.6mn, making it the 24th largest market in the world by value.
• Despite Brazil’s challenging economic situation, sales or organic products continue to grow, driven by consumers’ increasing interest in healthy and sustainable products.
• Sales growth will continue in coming years, but the organic packaged food and beverage market is expected to remain a niche market for specialized domestic and regional manufacturers.

• Organic packaged food and beverages are growing in popularity but remain niche and are dominated by regional and specialized players.
• Baby food was the fastest growing organic packaged food category in 2017, and tea posted the strongest growth among organic beverages.
• Distribution challenges are major hurdles impeding the development of organic packaged foods in Brazil, as many manufacturers struggle to source certain ingredients and forgo using third-party suppliers.

• The organic packaged food landscape is highly fragmented. Apis Vida Indústria e Comércio de Produtos Farmacéuticos Ltda is the leader in packaged food, with a 3.3% value share in 2017, due to the popularity of its organic honey.
• Usina São Francisco ranked first within organic beverages, with a value share of 36.9% due to its wide product portfolio that includes chocolate-based flavored powder drinks, fresh ground coffee, and fruit/vegetable juice under the Native brand.

• Organic packaged food and beverage sales are projected to post low-to-moderate annual growth through 2022, driven by increasing health- and environmental-consciousness but constrained by Brazil’s weak economy.
• In the face of inflation and high production and distribution costs, manufacturers will struggle to keep unit prices at affordable levels for many Brazilian consumers.
• Organic edible oil is projected to record the fastest sales growth rate among organic packaged food through 2022, and organic tea is projected to be the fastest growing organic beverage category during the same time period.

• Convenience is increasingly important to Brazilian consumers, and health and wellness product manufacturers address this trend by offering nutritious ready meals and snack options.
• After years of consumers demanding products with imported “super food” ingredients like cranberries and blueberries, locally grown Brazilian ingredients like jabuticaba, acai, guaraná and yerba mate are becoming more popular in health and wellness products.
• Consumers’ increasing health consciousness is driving increased demand for products that are positioned as reduced-sugar, low-calorie, “free from” and organic.

Economy:

• After several challenging years, Brazil’s economy experienced a feeble recover in 2017, and annual real GDP growth is projected to be 2.0% in the medium term.
• The gradual economic improvement is beginning to attract domestic and foreign investors, particularly those interested in investing in improving Brazil’s obsolete infrastructure, which is encouraged by the government.
• Brazil’s double-digit unemployment level will fall slowly during the medium term as real GDP grows and investment accelerates.

Population demographics: 

• In 2017 the Brazilian population reached 209 million—an increase of 34 million since 2000.
• Brazil’s fertility rate has been falling rapidly but it is still 1.7 children born per female.
• Demographers expect the aging process to accelerate in the future, with the share of those over 65 years reaching 13.6% of total population by 2030.

Income & expenditure: 

• Household spending in Brazil exhibits a sharp North-South divide. The Norte and Nordeste regions are the poorest, with average household expenditure around half that registered in the Sudeste and Sul regions. Brazil also has one of the most inequitable distributions of income in the region.
• Brazil accounts for more than a third of the region’s entire consumer market.