Table of Contents
Executive Summary
-
- Economy
- Brazil’s economy risks ‘technical recession’ in 2019
- Population is divided about the country’s future when it comes to the prices of products and services
- Brazilians are optimistic about their future financial situation, but recovering pre-recession levels of consumption is unlikely
- New rules are expected to facilitate the access to credit for consumers with good payment history and can heat the market
- Food and drinks
- Food and drinks that offer physical and emotional benefits should grow in Brazil
- Restaurants have the challenge of attracting consumers in a scenario of insecurity, expansion of delivery services and high prices
- Concerns over sustainability should impact the market of food and drinks
- Beverage sector can invest in products positioned for different consumer segments
- Beauty and personal care
- Natural ingredients should be even more present in products’ formulations
- Technology becomes indispensable for beauty brands to get closer to their customers
- Premium beauty and personal care products have the opportunity to increase their presence in the North region
- Demography
- Pension reform may boost financial services for the elderly
- What we think
Brazil Today – What You Need to Know
-
- Brazil’s economy risks “technical recession” in 2019
- Approximately seven out of 10 Brazilians won’t contribute to the pension system in 2060
The Economy
-
- Brazil’s economy risks “technical recession” in 2019
-
- Figure 1: Brazil’s GDP variation by quarter
- Unemployment rate remains high and increases the number of informal workers
-
- Figure 2: Informal workers aged 14+ (excluding domestic workers) – Brazil, 2013-18
- One of the main inflation drivers in 2018, truck drivers’ strike may have a new episode in 2019
-
- Figure 3: Extended National Consumer Price Index – Variation accumulated in 2018
The Population
-
- Educational levels have been rising in Brazil and may increase the purchasing power of the population in the future
-
- Figure 4: Distribution of people aged 14+ by level of education – Brazil, 2016-17
-
- Figure 5: Average hourly earnings in the main job by level of education – Brazil, 2017
- Approximately seven out of 10 Brazilians won’t contribute to the pension system in 2060
Categories Overview – Food: In-home and Out-of-home
-
- What you need to know
- What we think
- Highlights
- Brazilians see food as a way of improving their physical and emotional wellbeing
- Brazilians have been more interested in alternatives to animal meat
-
- Figure 6: Environmental impact: Beyond Burger vs. animal meat hamburger
- Diversification can further expand delivery services
-
- Figure 7: Taco Bell’s Party Packs
- Interaction between brands and categories brings innovative textures and flavors to the market
-
- Figure 8: Kit Kat Burrito
- Challenges
- Despite health concerns, Brazilians find it difficult to keep healthy habits
-
- Figure 9: Desrotulando app
- New nutritional labeling rules and agreements aimed at reducing sugar and sodium levels impose the challenge of maintaining the flavor for indulgent categories
-
- Figure 10: Models of nutritional labeling being evaluated by Anvisa
-
- Figure 11: Arcor campaign
- Restaurants have the challenge of attracting consumers in a scenario of insecurity, expansion of delivery services and high prices
-
- Figure 12: Namakura.ke dishes and cocktails
- The future
- Concerns over sustainability should impact the market when it comes to food waste
-
- Figure 13: The Surplus Food Karma app
- Figure 14: Wasteless Sell More
- After delivery services, “grab-and-go” format seems to be the next step when offering convenience to consumers
-
- Figure 15: Burger King Express
-
- Figure 16: Zaitt store in São Paulo
- Figure 17: Ofner To Go Mustard Baguette
- As Brazilians are living longer, brands and companies can stimulate the consumption of healthy food and drinks focused on prevention and long-term benefits
- Key consumer findings
Categories Overview – Non-alcoholic Drinks
-
- What you need to know
- What we think
- Highlights
- Industry focuses on functional benefits to boost consumption of non-alcoholic drinks
- Drinks with high content of protein stand out in the national market
-
- Figure 18: Launches of non-alcoholic drinks* with high-protein content – Worldwide, 2014-18
- Categories seen as less healthy have invested in seasonal drinks and limited editions to retain customers
- Challenges
- Agreement aimed at reducing sugar content brings challenges to the sector
-
- Figure 19: Sprite campaign
-
- Figure 20: Coca-Cola campaign
- Brands and companies need to be more transparent about ingredients, origins and production methods
-
- Figure 21: Tetra Pak app
- Ban on plastic straws is contributing to change the consumer behavior toward sustainability
-
- Figure 22: Água da Pedra campaign
- The future
- Organic drinks should gain space as discussions about pesticides grow
- Healthy drinks aimed at children can have a boom in the coming years
- Visual aspect will be increasingly valued in the drinks sector
-
- Figure 23: Gold Brew Nitro campaign
- Figure 24: Batch Organics cup
- Key consumer findings
Categories Overview – Alcoholic Drinks at Home and On-premise
-
- What you need to know
- What we think
- Highlights
- Brands are investing in extensions to other categories and licensing to attract new audiences
- Craft beer brands acquired by major manufacturers are investing in immersive experiences to keep their value
-
- Figure 25: Colorado’s Bar do Urso
- Figure 26: Colorado’s products
- Growing consumption of alcoholic drinks among women is an opportunity for the market
-
- Figure 27: Percentage of women aged 18+ who have consumed four or more doses of alcoholic drinks on a single occasion in the previous month, by age – Brazil, 2013-17
-
- Figure 28: Beer campaign
- Figure 29: Cervejaria Feminista’s beers
- Challenges
- Economic instability and low purchasing power of the population affect the price of alcoholic drinks
-
- Figure 30: Purchase behavior in past 12 months – Brazil, March 2019
-
- Figure 31: Extended National Consumer Price Index – Variation accumulated in 2018 – Specific sectors
- Aging population represents a barrier to the consumption of alcoholic drinks
- The future
- Segmenting alcoholic drinks for different consumption occasions at home is an opportunity for the sector
- Consumers have an interest in becoming experts in their favorite alcoholic drinks
-
- Figure 32: Eisenbahn reality show
- Key consumer findings
Categories Overview – Health and Wellbeing
-
- What you need to know
- What we think
- Highlights
- Technology becomes indispensable for brands to get closer to their customers
-
- Figure 33: Sense.ly chatbot
- Figure 34: Florence chatbot
- Mobile phones can become the main device to purchase products
- Aging population brings many opportunities to the market
- Challenges
- Beauty and personal care products should focus on sustainability
-
- Figure 35: Angle Razor, UK
- Natural ingredients should be even more present in products’ formulations
- The future
- Products that protect the skin against external aggressors will stand out
- Updating social media and thinking about the visual aspect of the products should become part of the routine of all companies of the segment
-
- Figure 36: Charlotte Tilbury, London
- Key consumer findings
Categories Overview – Personal Finance
-
- What you need to know
- What we think
- Highlights
- New rules are expected to facilitate the access to credit for consumers with good payment history and can heat the market
- Traffic jams and fuel’s price may be contributing to increase the demand for transport alternatives
-
- Figure 37: Bike Itaú
-
- Figure 38: Yellow bikes
- Figure 39: Movida bikes
- Education spending freeze can encourage private companies that operate in the sector of distance learning
-
- Figure 40: Cruzeiro do Sul University distance graduation fees
- Figure 41: Anhanguera University fee
- Figure 42: Uninove distance learning fee
- High number of “app drivers” transforms Brazil’s automotive market
-
- Figure 43: Uber partnership with car rental companies
-
- Figure 44: Localiza Driver
- Challenges
- High dollar imposes barriers to the purchase of imported products
-
- Figure 45: Average R$/US$ commercial exchange rate (sales value), January 2013-January 2019
-
- Figure 46: PayPal prepaid card
- The future
- Cashless payments should become more present in the market
-
- Figure 47: Itaú partnership with Apple Pay
- Key consumer findings
The Consumer – What You Need to Know
-
- Brazilians aged 45-54 are more likely to feel their financial situation is much worse
- Millennials are more confident their financial situation will improve in the short term, which can boost premium products
- Brazilians are afraid of losing their social security rights
- Brazilians are still little engaged with initiatives that involve brands
- Brazilians hold consumption of nonessential food back to avoid changing brands and categories
- Premium beauty and personal care products have the opportunity to increase their presence in the North region
Current Financial Situation
-
- Almost a third of Brazilians feel their financial situation is worse
-
- Figure 48: Current financial situation, by type of situation – Brazil, March 2019
- Brazilians aged 45-54 are more likely to feel their financial situation is much worse
-
- Figure 49: Current financial situation, by age – Brazil, March 2019
-
- Figure 50: Santander Duo account
- Figure 51: SumUp solution
Financial Situation over the Next 12 Months
-
- Brazilians are optimistic about their personal finances but worried about the stagnation of the purchasing power
-
- Figure 52: Financial situation over the next 12 months – Brazil, March 2019
-
- Figure 53: Kimberly Clark campaign
- Millennials are more confident their financial situation will improve in the short term, which can boost premium products
-
- Figure 54: Financial situation over next 12 months, by generation – Brazil, March 2019
Expectations about the Country’s Situation
-
- Brazilians are afraid of losing their social security rights
-
- Figure 55: Expectations about the country’s situation – Brazil, March 2019
-
- Figure 56: One Reverse Mortgage calculator
- Population is divided about the country’s future when it comes to the prices of products and services
-
- Figure 57: Expectations about the country’s situation – Brazil, March 2019
-
- Figure 58: Bike Itaú campaign
- Young men believe average salaries will improve in the coming years
-
- Figure 59: Expectations about the country’s situation, by gender and age – Brazil, March 2019
Behaviors toward Relationship with Brands
-
- Brazilians are still little engaged in initiatives that involve brands
-
- Figure 60: Behaviors toward relationship with brands – Brazil, March 2019
-
- Figure 61: AMA water
- Figure 62: AMA partnership with Rappi
- Complaining about a brand on social media is a behavior present in all generations
-
- Figure 63: Behaviors toward relationship with brands, by generation – Brazil, March 2019
-
- Figure 64: Nubank NuCommunity
- Figure 65: Nubank comparison
- Brands need to think how C12 and DE consumers access their content
-
- Figure 66: Behaviors toward relationship with brands, by socioeconomic group – Brazil, March 2019
-
- Figure 67: Differences between Uber and Uber Lite apps
Purchase Behavior in Past 12 Months
-
- Consumers prioritize price when buying primary food products
-
- Figure 68: Purchase behavior in past 12 months – Brazil, March 2019
- Brazilians hold consumption of nonessential food back to avoid changing brands and categories
-
- Figure 69: Purchase behavior in past 12 months – Brazil, March 2019
-
- Figure 70: Bacio di Latte loyalty program
- Consumers whose financial situation has improved have purchased from a brand they haven’t bought in a long time
-
- Figure 71: Purchase behavior in past 12 months, by current financial situation – Brazil, March 2019
-
- Figure 72: Omo unboxing action
Purchase Behavior over the Next 12 Months
-
- One in every four Brazilians doesn’t plan to purchase non-alcoholic drinks over the next year
-
- Figure 73: Purchase behavior over next 12 months – Brazil, March 2019
- Premium beauty and personal care products have the opportunity to increase their presence in the North region
-
- Figure 74: Purchase behavior over next 12 months, by region – Brazil, March 2019
- Households with children plan to replace cleaning products with cheaper alternatives
-
- Figure 75: Purchase behavior over next 12 months, by children in the household – Brazil, March 2019
Appendix – Abbreviations
-
- Abbreviations
Appendix – Market Size
-
- In-home food
-
- Figure 76: Retail sales in value, 2013-18
- Out-of-home food
-
- Figure 77: Retail sales in value, 2013-18
- Non-alcoholic drinks
-
- Figure 78: Retail sales in value, 2013-18
- In-home alcoholic drinks
-
- Figure 79: Retail sales in value, 2013-18
- Out-of-home alcoholic drinks
-
- Figure 80: Retail sales in value, 2013-18
- Beauty and personal care
-
- Figure 81: Retail sales in value, 2013-18
- OTCs and pharmaceuticals
-
- Figure 82: Retail sales in value, 2013-18
- Household care
-
- Figure 83: Retail sales in value, 2013-18
- Home and garden
-
- Figure 84: Retail sales in value, 2013-18
- Clothing and accessories
-
- Figure 85: Retail sales in value, 2013-18
- Transport
-
- Figure 86: Retail sales in value, 2013-18
- Vacations
-
- Figure 87: Retail sales in value, 2013-18
- Technology and communications
-
- Figure 88: Retail sales in value, 2013-18
- Leisure and entertainment
-
- Figure 89: Retail sales in value, 2013-18
- Personal finance and housing
-
- Figure 90: Retail sales in value, 2013-18
- Miscellaneous items
-
- Figure 91: Retail sales in value, 2013-18
Back to top