Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- Challenges
- Seen as non-essential, the category suffers with the economic insecurity
- Health concerns and high incidence of obesity and diabetes impose challenges
- Opportunities
- Search for indulgence and emotional well-being brings opportunities
- Health concerns can boost more healthful alternatives in the category
- Consumption as a snack between meals can also be an opportunity
- What we think
The Market – What You Need to Know
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- Economic situation and health concerns affect the category
Market Drivers
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- Inflation rate drops
- Unemployment rate still high
- Aging population
- 60% of Brazil’s adult population is overweight
- Increase in hypertension and diabetes incidence
- Government plans to reduce sugar consumption
- Change in labels includes allergenic and lactose content
Key Players – What You Need to Know
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- Arcor teaches consumers to prepare sweets and desserts
- Fast food restaurants invest in unusual flavor combinations
- Nestlé reduces sugar content without affecting flavor
Marketing Campaigns and Actions
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- Arcor teaches consumers to prepare sweets and desserts
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- Figure 1: Arcor Brazil's 'Magical Recipes' campaign, October 2017
- Fast-food restaurants invest in unusual flavor combinations
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- Figure 2: ‘Chocofritas’ – Burger King
- Figure 3: Sundae Bacon – Burger King
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- Figure 4: Cheese Bread with Nutella – McDonald's
- Cacau Show invests in business models, expanding marketing options
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- Figure 5: Business Models – Cacau Show
- Nestlé reduces the sugar content without affecting flavor
Who’s Innovating?
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- Sweets and desserts for consumption on-the-go appeal to Brazilians
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- Figure 6: New product launches with "on-the-go" claim, top countries and Brazil, percentage of the total number of sweets and desserts* new product launches, January 2015-December 2017
- Brazilians seek sweets and desserts with functional/nutritional benefits
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- Figure 7: New product launches with “functional/nutritional benefits”*, top 5 countries, percentage of the total number of sweets desserts** new product launches plus Brazil, January 2015-December 2017
The Consumer – What You Need to Know
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- Investing in bakery desserts, cakes, and sweet pies represents opportunities for supermarkets’ private labels
- Consumption of sweets/desserts as a snack appeals to students
- More healthful alternatives can attract Brazilians
- Indulgent pleasure is very important for the category
- Semi-ready products can boost consumption among younger women
Purchase Habits
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- Investing in bakery desserts, cakes, and sweet pies represents opportunities for supermarkets’ private labels
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- Figure 8: Purchase habits, type of sweet/dessert per sales channel, January 2018
- Premium ingredients can attract AB consumers to specialty stores
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- Figure 9: Purchase habits, type of sweet/dessert per sales channel, January 2018
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- Figure 10: Ofner's 'Festival de Brigadeiro' campaign
- Sweet drinks associated with well-known brands can appeal to men
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- Figure 11: Purchase habits in restaurants when having a meal, by age and gender, January 2018
Factors of Choice
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- Special offers and promotions can be important to launch new flavors
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- Figure 12: Factors of choice, January 2018
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- Figure 13: 'Doughnuts, popcorn, action!' – Krispy Kreme and Cinemex
- More healthful options in individual packages can attract those aged 35+
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- Figure 14: Factors of choice, by age, January 2018
- Consumption of sweets/desserts as a snack appeal to students
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- Figure 15: Factors of choice, satisfies hunger, by working situation, January 2018
Consumption Habits
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- More healthful alternatives can appeal to Brazilians
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- Figure 16: Consumption habits, January 2018
- Teaching easy sweet/dessert recipes can be an opportunity
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- Figure 17: “Cook This Page” - IKEA
- Figure 18: 'Cook This Page' – IKEA
- Offering small-sized portions of sweets and desserts can help specialty stores to overcome the price barrier and appeal to those aged 16-34
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- Figure 19: Consumption habits, by age, January 2018
Behaviors toward Desserts and Sweets
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- Indulgent pleasure is still very important for the category
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- Figure 20: Behaviors toward desserts and sweets, January 2018
- Associating desserts/sweets with emotional well-being
- Special editions and seasonal products can appeal to AB consumers
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- Figure 21: Behaviors toward desserts and sweets, by socioeconomic group, January 2018
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- Figure 22: Zombie Frappucino – Starbucks
- Figure 23: Unicorn Frappucino – Starbucks
Interest in Innovation
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- Investing in international sweets/desserts can be an opportunity
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- Figure 24: Interest in innovation, January 2018
- Brazilians want sweets/desserts with typical Brazilian flavors
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- Figure 25: Interest in innovation, by type of dessert purchased in the last six months, January 2018
- Semi-ready products can boost consumption among younger women
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- Figure 26: Interest in innovation, by gender and age, January 2018
Appendix – Abbreviations
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- Abbreviations
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