• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

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.

Top 5 Cities By Population

Top 5 Grocery Retailers By Sales

Top 5 Export Commodities To Brazil

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

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.

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:

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

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 (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 (2020)
USDA's GAIN Report Brazil Food Service - Hotel Restaurant Institutional (2020)