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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 17.1% in 2021, followed by Nestle SA and CIA Orgânica de Café with shares of 4.1% and 2.3% respectively. 
  • While Brazil only ranks 43rd globally for per capita spend on organic packaged food and beverages (US$ 0.38 in 2021), the market is set for solid forecast CAGR of 6.6% 2021-26.

 

  • The market for organic products in Brazil recorded a value of US$81 million in 2021, representing 0.1% of the global market value with a per capita consumption of US$0.38. 
  • 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 6.6% for the period 2021-2026.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Retail value sales of organic packaged food and beverages in Brazil grew by 9.5% in 2021 to US$81.0 million. 
  • Growth in organic packaged food was fuelled by organic edible oil, which accounted for almost half the market in 2021 and recorded a 16.4% expansion over 2020-2021.
  • Organic beverages displayed 10% retail current value growth in 2021, reaching US$34.1 million.
Market Trends
  • Organic packaged food and beverages mainly cater to high-income groups in Brazil, due to high associated costs. Affluent consumers were able to continue with their home-based routines and many pandemic-driven eating habits remained. Products such as organic olive oil and honey, typically consumed at home, have therefore continued to witness positive performances in 2021. Resulting from the ongoing quarantine scenario, higher-income consumers started to introduce organic options into their daily diets, as the value of this claim carried not only a sustainability aspect but also a premiumisation element. Middle-income consumers of organic beverages traded down to standard products during the Covid-19 pandemic when rising inflation led to higher prices.
  • The pandemic also accelerated the health and wellness trend in Brazil. More affluent consumers, the target audience of organic food producers, increased their purchases of organic products in an effort to eat healthier and boost their immune systems. Brands that launched organic lines during the pandemic were able to capture increasing demand for clean labels and lack of chemicals or pesticides. Moreover, the idea of buying a product providing better remuneration to local producers acquired special attention due to the economic scenario in the country. Dengo, a Brazilian chocolate brand focused on certified sourcing and organic and sustainable cultivation, developed a clear communication regarding its efforts to ensure cocoa producers are well valued, an increasing concern amongst more aware consumers, in addition to an evident trend for local provenance.
Competitive Landscape
  • Nestlé Brasil Ltda was the leading player in organic packaged food in 2021, with a retail value share of 7.1%, followed by Cia Brasileira de, with a retail value share of 5.4% in 2021. Driven by an increasing trend towards the end of the review period, certified organic labels have been appearing for the first time in many food categories in Brazil. The premiumisation movement around organic entered the portfolio of major companies such as Nestlé. Since the start of the pandemic, the growing interest in daily consumed foods such as oatmeal has consequently benefited the sales of organic variants as well, which are now included in the company’s portfolio. Nestlé’s powdered milk brand Leite Ninho, also saw the introduction of an organic line, a pioneer as a mainstream brand in the national market.
  • Usina São Francisco SA continued to dominate in organic beverages, with a 40.7% retail value share in 2021, followed by CIA Orgânica de Café, with a retail value share of 5.6%. Usina São Francisco SA’s brand Native, has consolidated its presence in diverse organic products ranging from juice to sugar and grains and has been able to develop its brand so that consumers associate it with clean labels, high quality and organic. Moreover, the increasing presence of online sales and the role played by specialised marketplaces such as Zona Cerealista has contributed to expanding awareness of the benefits of organic products as detailed information on product sourcing and the manufacturer are more easily accessed by consumers.
  • Many Brazilian consumers get confused when it comes to differentiating between natural and organic products, which creates competition between these two categories. However, it often means lower sales for organic products since their price point is often higher than natural products. The confusion comes as consumers perceive organic as being a categorisation within natural products, even though organic is related to production and natural is related to the process. This lack of understanding also hampers the development of organic beverages and organic packaged food, as natural products such as bread and biscuits are traded at lower unit prices, enabling low- to mid-income consumers to access them. The scenario for organic packaged food is considerably different in terms of penetration due to the higher price points of these products and the still not fully developed appeal this claim has on Brazilian consumers. However, local sweet biscuit brands such as Jasmine and Mãe Terra Cookies Orgânicos are introducing new formats and flavours to their organic lines and gaining penetration amongst higher-income consumers, including parents searching for more balanced options for their children. Over the forecast period, as other brands of sweet biscuits enter the category, reinforcing brand communication and providing improving flavour will be key factors for organic brands.
Prospects And Growth Opportunity
  • Against the backdrop of an improving economic climate, organic packaged food and beverages is forecast to exhibit a robust 6.8% CAGR over the period 2022-25. Organic packaged food is forecast to exhibit a CAGR of 8.0% over 2022-25, as consumer awareness for organic packaged food increases and consumers increasingly look for healthier options in general. The full understanding of what constitutes an organic product, and its benefits is yet to reach broader levels, even amongst more affluent consumers, as these products are still misread as simply natural. With many large companies opting to engage in organic certification, the label is expected to become more commonly found in packaged food brands over the forecast period, representing an opportunity for premiumisation. However, certified organic products, especially new variants, are expected to remain largely inaccessible to middle- and low- income consumers due to their considerably higher prices.
  • Organic beverages, and health and wellness products in general, are dependent on how trends develop and how they fit into new lifestyles, with this being the main driver for the increasing popularity of this category. Those searching for a healthier life, especially the younger generation, who often have higher than average incomes, are the main audience for organic beverages. However, although lifestyle changes are part of what is going to dictate the trajectory of the category, its potential will also be dictated by economic shifts in Brazil and the subsequent development of the middle class, population growth and increases in income and employment.
  • Over the forecast period, the productivity of organic agriculture in Brazil is expected to accelerate with the consolidation of distribution chains from rural areas towards urban centres. Improvements in tech-based tools to facilitate the required tracking for organic products is set to contribute to increasing investment. Blockchain methodologies for logistics and AI algorithms that enable producers to plan and optimise their resources are some examples of how further investments might allow them to reduce costs for organic products. Delivery of organic baskets with fresh products has grown considerably in the country during the pandemic, leveraged by subscription services and the facilitation of home delivery. Online players such as Raízs are increasingly including packaged organic food options on their platforms, including rice and bread, amongst others. Over the forecast period, the further penetration of e-commerce within organic packaged food will be central to brands consolidating their appeal amongst a wider range of consumers.
General Health And Wellness Trends
  • Health and wellness has been an ongoing trend in Brazil, with sales rising from US$17,032.9 million in 2018 to US$20,571.7 million in 2021, recording a robust 6.5% CAGR over the period. Sales are set to rise further to US$21,775.1 million in 2022 and US$25,359.1 million in 2025, recording a 5.2% CAGR over 2022-2025. Both health and wellness beverages and packaged food are expected to continue their growth trend in both retail volume and current value terms over the forecast period, driven by changing consumer lifestyles and increased health awareness, due to the Covid-19 pandemic. The impact of macroeconomic hard drivers is also significant, as health and wellness products often sell for a higher price. 
  • Even though sales of these products are dependent on lifestyles, they are also dependent on economic performance to fully gain scale. Income recovery for Brazilian consumers in the forecast period will be a major factor dictating industry expansion. Although remaining at higher price points, some health and wellness categories are set to improve their price parity with regular lines, as is the case for zero lactose yoghurt and whole-grain bread, as industry upscaling allows cost decreases in the coming years. Packaging shortages will also play a part, as these will define how much and how quickly the category can expand, especially in health and wellness beverages. 
  • Brazilian authorities have approved new labelling legislation stating that any food or beverage products with high levels of sugar, saturated fat, and sodium must include alerts on the front panel of packaging. This change will be implemented from October 2022 and will influence the industry, opening up opportunities for brands to reposition or strengthen their claims. The expectation is that the new labelling will decrease the volume of standard products consumed, as has been seen in Chile and Australia, giving a window for health and wellness products to work their brand strategies and develop consumer loyalty as well as expand to new consumer groups.
General Economics And Demographic Landscape

Economy: 

  • Over 2021-2040, the Brazilian economy is forecast to expand by an average annual real rate of 2.3%, which is below the regional average.
  • In 2020, inflation remained below the central bank’s target of 4.0%, but is likely to increase gradually and settle around 3.8% by 2025.
  • Public debt surged from 87.7% in 2019 to 97.0% of GDP in 2020 and is anticipated to remain at record-high levels over the medium term.

 

Population demographics: 

  • Brazil has been witnessing slowing population growth, standing at 212.7 million in 2021, and forecast to stand at 215.8 million in 2025.
  • The slow population growth is mainly driven by falling fertility rates and net migration. The pandemic also left a huge dent in Brazil’s economy, as the poverty issue worsened, and the income inequality disparity widened. 
  • The median age in 2020 was recorded at an all-time high 33.5. This is further expected to increase to 35.6 years by 2025 and 45.1 years by 2050. Life expectancy in Brazil has risen to 74.4 years of age, higher than the average for developing nations, while fertility rates have dropped significantly, below the natural replacement rate at 1.78 children per woman.

 

Income & expenditure: 

  • Per capita gross income in Brazil is forecast to increase by 53.5% in real terms over 2021-2040.
  • Over the 2020-2030 period, Brazil is projected to drop by two positions and rank 17th out of 84 countries in Euromonitor International’s Wealth Index.
  • Income inequality in Brazil is estimated to increase over the long term and remain extremely high by global standards and even higher than that of its neighbouring countries. As per the latest data from the World Bank, as of 2019, Brazil has a Gini coefficient of 53.4. The Gini coefficient is a measure of statistical dispersion intended to represent income inequality or wealth inequality within a nation or a social group. A higher Gini index indicates greater inequality. The latest reported Gini coefficients of Brazil’s neighbouring countries in 2019 are 42.9 in Argentina, 45.7 in Paraguay, 41.6 in Bolivia, 41.5 in Peru and 51.3 in Colombia.

 

Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

CAGR
(18-21)

CAGR
(22-25)

Health & wellness products consumption [1]

USD million

17,032.9

18,224.5

19,182.7

20,571.7

21,775.1

22,951.1

24,123.1

25,359.1

6.5%

5.2%

Organic packaged food and beverages consumption

USD million

56.2

63.7

74.0

81.0

86.3

92.3

98.5

105.0

13.0%

6.8%

Organic packaged food consumption

USD million

28.9

34.3

43.0

46.9

50.2

54.2

58.6

63.3

17.5%

8.0%

Organic beverages consumption

USD million

27.3

29.5

31.0

34.1

36.1

38.1

40.0

41.7

7.7%

4.9%

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

%

0.3%

0.3%

0.4%

0.4%

0.4%

0.4%

0.4%

0.4%

10.1%

0.0%

 

[1] Health and Wellness Definition: 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 The above definition and more can be referenced from the definitions table at the end of the report.

Economic And Demographic Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

Total population

million

208.5

210.1

211.8

212.7

213.5

214.4

215.1

215.8

% Middle and upper class of total population

%

32.1

32.3

32.2

32.3

32.4

32.4

32.5

32.5

% Population aged 65+

%

6.2

6.3

6.3

6.4

6.5

6.6

6.7

6.8

% Population aged 0-14

%

5.6

5.5

5.4

5.4

5.3

5.2

5.1

5.0

% Population with higher education degrees

%

11.5

11.7

11.9

12.0

12.1

12.2

12.3

12.4

Average number of children per household

children

0.5

0.5

0.5

0.5

0.5

0.5

0.5

0.5

GDP per capita

USD per capita

13,408.3

13,721.3

12,864.2

13,766.8

14,220.9

14,478.0

14,671.7

14,813.8

Consumer expenditure per capita (US$)

USD per capita

7,046.4

7,152.7

6,648.0

7,075.2

7,383.6

7,517.3

7,624.1

7,713.8

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

USD per capita

923.6

934.4

995.1

969.8

1001.7

1011.6

1018.7

1025.8

 

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2021)

1

São Paulo

21.7

Top cities by population (2021)

2

Rio de Janeiro

13.1

Top cities by population (2021)

3

Belo Horizonte

6.1

Top cities by population (2021)

4

Brasília

4.4

Top cities by population (2021)

5

Porto Alegre

4.4

 

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2021)

1

Carrefour SA

Top grocery retailers by sales (2021)

2

Casino Guichard-Perrachon SA

Top grocery retailers by sales (2021)

3

Cencosud SA

Top grocery retailers by sales (2021)

4

Supermercados BH Comércio de Alimentos Ltda

Top grocery retailers by sales (2021)

5

Cia Zaffari Comércio e Indústria

 

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$)

2021

Brazil

1

Organic Cherries Fresh

125,338

2021

Brazil

2

Organic Peach/Nectarine Fresh

82,720

2021

Brazil

3

Organic Carrots Fr/Ch

30,000

2021

Brazil

4

Organic Coffee Roast Not Decaf

4,193

2021

Brazil

Total

Total Organics*

242,251

2020

Brazil

1

Organic Carrots Fr/Ch

652,554

2020

Brazil

2

Organic Tomato Sauce Ex Ketchup

27,530

2020

Brazil

3

Organic Peach/Nectarine Fresh

20,640

2020

Brazil

4

Organic Cherry Tomato Fr/Ch

13,068

2020

Brazil

5

Organic Cherries Fresh

8,820

2020

Brazil

Total

Total Organics*

722,612

2019

Brazil

1

Organic Carrots Fr/Ch

2,203,529

2019

Brazil

2

Organic Peach/Nectarine 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

 

Note : Total organics is the sum of all exports to a country within a 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 2018 – 2021 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 2018-2021 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's Plant-Based Food Trends (2020)
USDA's GAIN Report Brazil Food Processing Ingredients (2021) 
USDA's GAIN Report Market Fact Sheet (2016)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Export Certificate Report (2022)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2022)
USDA's GAIN Report Brazil Exporter Guide (2021)
USDA's GAIN Report Brazil Retail Foods (2021)
USDA's GAIN Report Brazil Food Service - Hotel Restaurant Institutional (2021)