Restrictive Requirements for Imports

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Quick Stats

Quick Stats

Organics Dashboard From Passport

  • Usina São Francisco SA leads the organic packaged food and beverages in Brazil with a share of 18.2% in 2019, followed by CIA Orgânica de Café and Otsuka Holdings Co Ltd with a share of 2.8% and 1.9% respectively.
  • Currently, the key consumer group of organic products is high-income individuals. A significant factor for this low customer base is the current economic scenario, higher unit price items of organic products accompanied by recovering consumer expenditure. However, sales are expected to increase in the short and long term in line with the predicted economic growth and due to an anticipated increase in consumer awareness.

  • The market for organic products in Brazil recorded a value of US$89 million in 2019, representing 0.1% of the global market value with a per capita consumption of US$0.42.
  • However a recovering economy, increasing disposable income and an increase in initiatives to inform consumers about the health benefits of organic products are all expected to be key driving factors boosting growth in the coming years, with organic packaged food and beverages expected to record a CAGR of 4.1% for the period 2019-2024.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic beverages category is a niche in Brazil due to the products' high unit prices. The high unit price is a critical factor in lowering the demand among the price-sensitive Brazilian consumers. Another crucial impediment is the low level of consumer awareness and consequently, several negative perceptions about the category.
  • Despite high prices, organic packaged food and beverages in Brazil recorded a value of US$89.0mn in 2019, registering a YoY current value growth of 7% for the period 2018-2019. Demand is driven by consumers' interest in choosing natural and sustainable food options.
Market Trends
  • Organic baby food recorded strong retail value growth of 48% in 2019. Parents, particularly from high-income households, are increasingly concerned about the nutritional benefits and the presence of pesticides and contaminants in their children’s food, thus prefer the organic varieties and willing to pay higher prices for good quality choices.
  • Organic beverages in Brazil recorded current retail value growth of 8.0% in 2019, reaching US$42.5mn. Of all organic beverage categories, organic tea was the most dynamic with 13% current value growth in 2019.
  • The lack of awareness on organic beverages and their positive effects on the body, along with a price increase of 7% in 2019 are significant drivers of the relatively low demand in Brazil.
Competitive Landscape
  • Native from Usina São Francisco SA continued to retain its leadership position with nearly 40% of retail value sales of organic beverages in 2019 and recorded growth of 2.4% between 2018-2019. The broad portfolio, long brand history of pioneering innovation and active social media efforts led to the brand witnessing higher growth than all other organic beverage brands combined in 2019.
  • Regional and small players control the organic beverages market holding more than half of the total sales (50.7%) in 2019. However, recently, those brands have been threatened by the growth of popular local brands such as Native, which have scalable production and costs and the trust of the target audience. Moreover, the entry of large companies such as Nestlé SA, which invested in organic beverages in 2019, launching its new product Ninho Orgânico (organic milk powder), presents further challenges in the market.
  • Organic packaged food sales in Brazil are fragmented, with the leader Taeq, a private label owned and sold by Cia Brasileira de Distribuição SA accounting for just a mid-single-digit share of 5.2%. As Taeq is a private label, this allows CBD, the retailer, to offer competitive price points compared to smaller local brands, which is beneficial and encouraging for the price-sensitive Brazilian consumers.
Prospects And Growth Opportunity
  • Brazilian consumers are still not fully aware of the difference between organic and non-organic beverages. As a result, the health benefits of organic drinks are mostly unknown among the general public, most often confused with natural products or free from genetically modified organisms (GMO). While organic beverages are expected to continue to grow, substantial growth would require massive investment in consumers’ education and communication campaigns to draw attention to their benefits.
  • Brazilian organic packaged food manufacturer Mãe Terra released several organic snacks in 2019 under the lines NuPoca and NuChips. The new launches were promoted in August on Instagram by one of the company's brand ambassadors, Sergio Marone. Other celebrities endorsing the brand include the nutritionist Bela Gil and actor Paulo Vilhena. Before these launches, at the beginning of 2019, the company produced a short video called "we need to talk about organics". Such initiatives could help build awareness and educate consumers on a large scale, which, in turn, would raise demand.
  • With the economic recovery underway, price-sensitive consumers prefer to pick the cheapest option, which in some categories such as UHT milk, is one-third the price of organic UHT milk. A similar pattern is noticed among other categories, with the organic alternative mostly more than double the price, which presents an opportunity for companies with economies of scale that can offer products at a competitive price.
General Health And Wellness Trends
  • A predominant problem is the current low level of consumer education on the benefits and added value of organic packaged foods and beverages, which are often confused with free from GMO products.
  • While awareness on the importance and benefits of organic products is low, consumers in Brazil are becoming increasingly conscious of their food consumption; however, they are still more focused on the use of the most economically viable variant of the product. Nonetheless, among parents from high-income households, demand is high for organic baby food, which provides children with the most natural option possible.
General Economics And Demographic Landscape

Economy:

  • Brazil’s economy is expected to have substantial growth in 2020, with real GDP expected to increase by 2.1% in 2020, post gains of 1.0% in 2019. The approval of the pension reform and progress on the structural policy has helped restore consumer confidence and support investment.
  • A low rate of inflation and easier access to funds in individual unemployment insurance accounts are expected to lead to stronger consumption. Private final consumption witnessed gains of 1.9% in 2019, with an increase of 2.6% forecasted for 2020.
  • Over the coming years, the recovery is expected to continue, with real GDP growth rising slightly to 2.3% in 2021, and annual growth of real GDP averaging around 2.4% in 2023-2027.
     

Population demographics:

  • The population of Brazil reached 211 million in 2019, increasing by 36.3 million since 2000. Additionally, there has also been an increase in the median age to 33.1 years in 2019, which is 7.8 years higher than the median age in 2000.
  • The country is witnessing an increasing ageing trend, with the proportion of the population over the age of 65, nearly doubling between 2000 and 2019, reaching 19.5 million. However, this group accounts for 9.3% of the population, which is a relatively small portion compared to most other countries.
  • The ageing trend is expected to continue, with the share of the population over the age of 65 years, reaching 13.6% of the total population by 2030.
     

Income & expenditure:

  • In 2019, Brazil’s savings were 11.6% of disposable income. This ratio is expected to dip to 11.5% in 2020. A low savings rate has led to Brazil becoming primarily dependent on international capital inflows.
  • Consumer expenditure per capita amounted to US$5,474 in 2019, with a predicted increase of 1.8% in 2020. The fastest growth during the period 2019-2030 is expected to be in health goods, medical services and education.
  • For the period 2020-2030, total consumer expenditure is expected to grow at an average annual rate of 2.6%, increasing by a cumulative value of 29.7% during that period. By 2020, total consumer expenditure will represent 62.7% of GDP.

 

Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

CAGR
(16-19)

CAGR
(20-22)

Health & wellness products consumption

USD million

22,351.8

23,875.7

25,667.3

27,726.4

29,430.2

31,116.4

32,869.7

7.4%

5.7%

Organic packaged food and beverages consumption

USD million

72.2

77.0

82.7

89.0

92.7

96.7

101.0

7.2%

4.4%

Organic packaged food consumption

USD million

37.4

40.3

43.4

46.6

48.7

51.0

53.5

7.6%

4.8%

Organic beverages consumption

USD million

34.7

36.7

39.3

42.5

44.0

45.7

47.5

7.0%

3.9%

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

%

0.3%

0.3%

0.3%

0.3%

0.3%

0.3%

0.3%

-

-

Economic And Demographic Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

Total population

million

206.2

207.8

209.5

211.0

212.6

214.0

215.4

% Middle and upper class of total population

%

23.1

23.2

23.2

23.3

23.3

23.4

23.4

% Population aged 65+

%

8.3%

8.6%

8.9%

9.3%

9.6%

9.9%

10.3%

% Population aged 0-14

%

22.0%

21.6%

21.3%

21.0%

20.7%

20.4%

20.2%

% Population with higher education degrees

%

11.1

11.3

11.5

11.7

11.9

12.0

12.1

Average number of children per household

children

0.9

0.8

0.8

0.8

0.8

0.8

0.8

GDP per capita

USD per capita

7,710.8

8,031.9

8,339.4

8,718.8

8,852.2

8,993.1

9,143.3

Consumer expenditure per capita (US$)

USD per capita

4,789.7

5,009.4

5,220.0

5,478.5

5,574.1

5,679.7

5,795.0

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

USD per capita

793.4

799.3

794.1

834.1

838.3

852.6

870.1

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2019)

1

São Paulo

21.6

Top cities by population (2019)

2

Rio de Janeiro

13.0

Top cities by population (2019)

3

Belo Horizonte

6.0

Top cities by population (2019)

4

Brasília

4.4

Top cities by population (2019)

5

Porto Alegre

4.4

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2019)

1

Casino Guichard-Perrachon SA

Top grocery retailers by sales (2019)

2

Wal-Mart Brasil Ltda

Top grocery retailers by sales (2019)

3

Carrefour SA

Top grocery retailers by sales (2019)

4

Cencosud SA

Top grocery retailers by sales (2019)

5

Supermercados BH Comércio de Alimentos Ltda

United States Department Of Agriculture Global Agricultural Trade System Data

Top 5 Export Commodities To Brazil

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2019

Brazil

1

Organic Carrots Fr/Ch

2,203,529

2019

Brazil

2

Organic Peach/Nectarin Fresh

144,129

2019

Brazil

3

Organic Cherries Fresh

25,975

2019

Brazil

4

Organic Cherry Tomato Fr/Ch

3,000

2019

Brazil

5

Organic Celery Fr/Ch

3,000

2019

Brazil

Total

Total Organics*

2,379,633

2018

Brazil

1

Organic Carrots Fr/Ch

2,378,648

2018

Brazil

2

Organic Peach/Nectarin Fresh

148,600

2018

Brazil

Total

Total Organics*

2,527,248

2017

Brazil

1

Organic Carrots Fr/Ch

2,311,368

2017

Brazil

2

Organic Pears Fresh

210,097

2017

Brazil

3

Organic Peach/Nectarin Fresh

57,440

2017

Brazil

4

Organic Apples Fresh

21,999

2017

Brazil

5

Organic Tomato Sauce Ex Ketchp

18,216

2017

Brazil

Total

Total Organics*

2,619,120

2016

Brazil

1

Organic Carrots Fr/Ch

1,643,796

2016

Brazil

2

Organic Onion Sets Fr/Ch

18,700

2016

Brazil

3

Organic Asparagus Fr/Ch

11,780

2016

Brazil

4

Organic Coffee Roast Not Decaf

7,095

2016

Brazil

Total

Total Organics*

1,681,371


Note : Total organics is the sum of all exports in a particular year 

 

Definitions

Definitions

Term

Definition

Health and Wellness

Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products.

Organic packaged foods and beverages

This category includes packaged food & beverages that are certified organic by an approved certification body. Organic production is based on:

• A system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers.
• Organic food & beverages are minimally processed without artificial ingredients, preservatives or irradiation.
• The use of GMOs (Genetically Modified Organism) is prohibited. “Certified Organic” means the item has been grown according to strict uniform standards that are verified by independent state or private organizations.
• Depending on the country, such products are called ‘organic’, ‘biological’ or ‘ecological’: For organic products to be included under Euromonitor definitions, the organic aspect needs to form part of positioning/marketing of the product. This is an aggregation of organic baby food, bakery, confectionery, dairy, ice cream, oils and fats, ready meals, rice, sauces, dressings and condiments, snack bars, soups, spreads, sweet and savory snacks and other organic food.

Note that fresh food products or individual ingredients are not included in this definition.

Compound annual growth rate (CAGR)

The compound annual growth rate (CAGR) is the average annual growth rate over a specified period of time. For instance, the CAGR consumption of from 2016 – 2019 will be the average growth rates across these three years.

USDA GATS data clarification

The data presented in table 2.4 represents the dollar values of the top 5 organic commodities as well as of the total organic exports of the trade partner for the period 2016-2019 as per the United States Department of Agriculture’s Global Agricultural Trade System, a database consisting of international agricultural, fish, forest and textile products trade statistics dating from the inception of the Harmonized coding system in 1989 to present.

Policy Information

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 March 2017 are compiled in English:

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. 460 - 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

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

USDA's GAIN Report Market Access Brief for Organic Products (2019)
USDA's GAIN Report Brazil Food Processing Ingredients (2020) 
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 Food and Agricultural Import Regulations and Standards Export Certificate Report (2020)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2020)
USDA's GAIN Report Brazil Exporter Guide (2020)
USDA's GAIN Report Brazil Retail Foods (2019)
USDA's GAIN Report Brazil Food Service - Hotel Restaurant Institutional (2019)