International
Markets
Bureau
MARKET ANALYSIS REPORT | JUNE 2010
Health and Wellness Trends
In Brazil
Health and Wellness
In Brazil
EXECUTIVE SUMMARY
INSIDE THIS ISSUE
Market Data
3
Economic trends
4
Consumer trends
4
Brazil is a Portuguese-speaking giant in an otherwise Spanishspeaking continent. In the last decade, the country has
engaged in social and economic reforms, and established a
closer relationship with its neighbours and beyond. As an
emerging economy, Brazil is a federation of 26 states and
home to an estimated 190 million people (2009) (0-14 years,
27.1%; 15-64 years; 67.2%; and 65 years and over; 5.7%).
Health and Wellness Trends
5
Retail Trends
5
Fortified/Functional Foods
6
Better-For-You Foods
7
Brazil is characterized by a population with increasing
purchase power and an appetite for innovative, safe, and highquality food products. Therefore, despite being a major
competitor for Canada, Brazil’s status as an emerging market
makes it a target for the expansion of Canadian agricultural
trade and businesses.
Nutraceuticals
8
Vitamins
8
Fresh and Natural Foods
9
Distribution Channels
9
Companies
10
New Products
10
Annex “A” Definitions
12
Brazil is the world's fifth-largest, and Latin America’s largest,
economy. It is also the largest country in South America with
the greatest population, highest Gross Domestic Product
(GDP), and the most trade in South America.
As an emerging economy, Brazil is home to a relatively large
group of people who can be categorized as wealthy, an
extremely large group of people who live in poverty and a very
small, but growing, middle class. As incomes have increased,
the consumption of food has risen among all income groups.
Brazilian consumer interest in the relationship between diet
and health has increased the demand for information about
functional foods. An aging population and rising interest in
attaining wellness through diet are among the factors fuelling
this interest.
Brazil is regarded as the engine that leads South American
trade and many feel that it is a leading democracy on the
South American continent. Despite the immensity of its
territory, both people and material wealth are mainly
concentrated along the Atlantic coast in the east of the
country, with the two largest cities, São Paulo and Rio de Janeiro, accounting for 17% of the national population.
“
The desire to attain wellness
through diet is among the factors
fuelling Brazilian interest in safe,
high quality food products.
”
The definition used for the health and wellness categories in this
paper are grouped in annex “A“ at the end of this report and are
ones used by Euromonitor International and Mintel, as they are
widely recognized and accepted.
Source: Planet Retail LTD
PAGE 2
MARKET DATA
Brazil Health and Wellness Market Retail Sales US$ Million
2004
2005
2006
2007
2008
2009
1159.2
1340.6
1472.5
1639.0
1769.3
1927.7
11,282.6
12,448.3
14,148.7
15,858.5
17,535.1
19,806.6
Health and Wellness Nutritionals
Health and Wellness Food and Beverage
Source: Euromonitor International: Health and Wellness
Brazil Food and Beverage Market Sales US$ Million
2004
2005
2006
2007
2008
2009
Organic Food and Beverages
30.4
37.4
42.4
48.9
55.9
59.2
Fortified/Functional Food and
Beverages
3334.6
3797.3
4035.9
4644.0
5357.3
5632.8
Better for you Food and Beverages
2778.0
3103.6
3470.4
4168.5
4941.0
5303.1
Source: Euromonitor International: Health and Wellness
Brazil Nutritionals Market Sales US$ Millions
2004
2005
2006
2007
2008
2009
Vitamins and dietary supplements
649.5
729.5
799.1
866.6
950.4
1028.0
Herbal/traditional products
262.5
306.6
348.6
401.0
419.8
454.5
Slimming products
167.2
220.2
236.7
258.6
297.4
329.6
Sports nutrition
53.6
58.3
61.9
66.5
73.6
80.7
Source: Euromonitor International: Health and Wellness
PAGE 3
ECONOMIC TRENDS
Brazil's economy outweighs that of all other South American countries and is expanding its presence in world markets,
thanks to large and well-developed agricultural, mining, manufacturing, and service sectors.
As mentioned in the executive summary of this report, Brazil is regarded as the driving force behind South American trade,
and as the leading democracy of the continent. Despite its substantial size, Brazil’s population is primarily concentrated
along the east coast. São Paulo and Rio de Janeiro, the country’s two largest cities, account for a combined 17% of the
total population, and subsequently, house the majority of Brazil’s material wealth.
With an aging population, Brazil's spending and consumption habits are becoming
more in line with what is being observed in North America, thanks to the higher
disposable incomes of this segment of the population. The improved economic conditions and increased industrialization in poorer regions of the country is positively
affecting a range of economic sectors, such as travel and tourism, leisure, dining
out and convenience foods, transport, healthcare, functional foods, personal hygiene and cleaning, and financial services.
This transformation has translated into the growth of health and wellness foods
offered in supermarkets and pharmacies. This is more prevalent in family-oriented
neighbourhoods, as people migrate to suburban areas in the quest for the
conveniences of modern urban life.
Brazilian cities by number of
inhabitants (2005)
1. São Paulo
2. Rio de Janeiro
3. Belo Horizonte
4. Porto Alegre
5. Recife
6. Brasília
7. Salvador
8. Fortaleza
9. Curitiba
10. Campinas
11. Belém
12. Goiânia
13. Manaus
19,037,487
11,570,524
5,391,284
3,978,263
3,599,181
3,454,961
3,350,523
3,349,826
3,141,366
2,633,938
2,042,530
1,897,961
1,644,690
CONSUMER TRENDS
Brazilians have a relatively healthy diet which consists largely of fresh food. In light of international trends, Brazilians have
become more likely to purchase low-fat or fat-free products. Consumption of organic foods, however, has not developed as
quickly. This is primarily due to low incomes among the majority of Brazil’s consumer base.
Today, Brazilians tend to eat an average of three meals a day, whereas in the past, the average was four meals a day. This
key change in Brazilian consumption is a sign of the times. Westernization of eating habits is becoming more prevalent
among Brazilians. Over the past decade, packaged foods, such as dairy products, have become increasingly popular in
major centres, for a society that is generally eating food with higher nutritional value than previous generations.
Eating outside the home is becoming more common. On a per
capita basis, 3.7% of the GDP is spent on food, drinks and snacks
prepared in food and drink outlets. People living in the urban areas
of Brazil spend significantly more on eating outside the home than
those living in rural areas.
Source: Planet Retail LTD
PAGE 4
HEALTH AND WELLNESS TRENDS
Major areas of opportunity in Brazil’s health and wellness sector are emerging in cereals and oilseeds. Innovative actions
taken by food processors are leading to new uses of cereals in health and wellness products, particularly in the baked
goods and breakfast cereals sector. In the oilseed sector, innovation is taking place in spreadable fats, where oilseeds are
being used to improve the health content of butter and margarine.
Fruit juice is a major market in Brazil and is poised for strong growth over the medium term as consumers shift from homesqueezed juices to ready-to-drink juices. This shift has been occurring over the past five years and is expected to continue
over the next five.
Organic products are not very popular yet in Brazil and make up a tiny fraction of total food sales. It is generally believed
that organic products are too expensive for the average consumer.
Frozen yogurt offers an excellent opportunity for companies wishing to innovate in the Brazilian market. Yogurts,
particularly pro-biotic yogurts, have been growing quickly in popularity. Ice cream has also been very popular. These two
trends indicate that the currently untapped frozen yogurt market could be highly successful, if marketed as a great tasting
and healthy alternative to ice cream.
RETAIL TRENDS
Health and wellness products (especially functional foods) have performed well globally, even in light of the economic
downturn, as consumers seek out healthier lifestyles. Companies that have invested in innovative products have experienced stronger sales as a result.
Hypermarkets and supermarkets are very popular outlets for purchasing food in urban areas, especially among upper and
middle-income earners. Smaller stores are more popular among low-income earners. However, large chains such as WalMart and Carrefour have been aggressively seeking to expand into this segment of the market, as characterized by the
purchase of regional chains and independent stores to gain access to the market.
The use of genetically modified ingredients is heavily regulated in Brazil, however, the use of these ingredients are still
widespread in processed food due to the difficulty of testing for genetic modification after production. Products that consist
of more than 1% genetically modified ingredients are required to bear a special label that indicates genetic modification.
This practice is rarely observed in Brazil.
Source: Planet Retail LTD
PAGE 5
Brazil: Top Five Retailers 2009
Company
Number of
outlets
Sales area (sq. ft.)
Average sales
area (sq. ft.)
Banner sales 2009
(USD millions)
Market
share (%)
1,089
19,170,223
17,604
14,737
8.8
Carrefour
590
15,856,693
26,876
13,686
8.2
Wal-Mart
379
20,665,061
54,525
10,881
6.5
478
6,381,104
13,350
5,959
3.6
69
5,251,701
76,112
3,023
1.8
2,605
67,324,782
48,286
29.0
Other
118,418
71.0
Total
166,704
100.0
Casino
Lojas-Americanas
SHV-Makro
Subtotal
Source: Planet Retail
FORTIFIED/FUNCTIONAL FOODS
Functional and fortified foods make up the biggest portion of the Brazilian health and wellness market, having grown 8% in
2008 with sales in excess of US $4 billion (Euromonitor). If we add functional beverages, this figure rises above US $5 billion,
taking into consideration energy drinks, which grew by 26%.
Generally, fortified/functional food is perceived by health-conscious Brazilian consumers to be helpful in addressing specific
health conditions such as high blood pressure, heart disease, high cholesterol, digestive health, women’s health,
osteoporosis, stress, and fatigue.
Dairy products dominate the sector, representing 59% of all functional food sales. A key growth driver is the aging population
and, thus, a rising number of consumers with health concerns related to weight or intestinal health, among others. Probiotic
yogurts are particularly successful in Brazil, as the two leading brands in the Brazilian market also happen to be probiotic
brands. These yogurts have sold well on health claims, in particular that the product will help prevent slow intestinal transit, a
major health issue among Brazilians. Probiotic yogurt was the most dynamic food category, growing by 26% with Dairy
Partners Americas Brasil and Danone leading 31% and 11% of the fortified functional foods category, respectively.
Skin-friendly beauty foods are also highly popular, fortified with ingredients such as vitamin E, collagen, ceramide and
hyaluronic acid.
An important trend is the introduction of fortified rice. Companies have begun using soy products to fortify rice with
nutrients and offering it as a premium health product.
PAGE 6
Sports drinks are becoming more popular among the middle class, alongside spreading consumer
awareness of the need to replace water, electrolytes and other minerals during strenuous physical
activity.
The breakfast cereal market offers many opportunities as well. The market is driven by growth in high
fibre products such as Muesli, which is the strongest sub-sector of this market. Kellogg Brasil & Cia has
led the market in innovation and market share.
Functional foods also reflect a tremendous amount of new product development and creativity. An example of this is
fortified/functional confectionery, which had a market value of US$ 560 million in 2004 (Euromonitor), and represented 10%
of all confectionery sales.
Baked goods in Brazil are undergoing a period of innovation specifically related to the fortification of food with nutrients.
Innovation is especially important in the baked goods market due to the highly competitive nature of the sector.
Functional foods must be registered in Brazil. Companies must also demonstrate that their claims are accurate, products
are safe and that quality-control procedures are in place.
BETTER-FOR-YOU FOODS
The chilled and frozen processed meat markets are currently shifting toward premium and light products. While most
premiumization in this segment is focused on improving flavour, light products are aimed at reducing fat content to meet
consumer demand for healthier foods.
Companies have been introducing healthier versions of traditional foods, such as salgadinhos. In the past, these were
deep-fried finger foods, but innovative producers have introduced oven-baked versions, which are perceived as healthy
alternatives.
In the breakfast cereal segment of the market, companies are starting to offer low-fat and sugar-free versions of high-fibre
cereals, in order to capture market share.
An under-serviced area of the baked goods market in Brazil is better-for-you cakes. Reduced fat and sugar cakes are a
rarity, but may quickly become popular in Brazil, due to concerns regarding the caloric content of such foods.
Consumers are also searching for alternatives to trans-fat and cholesterol-laden oils and fats. However, consumers in this
market do not seem to distinguish between so-called good and bad cholesterols. This may be due to a lack of information.
As a result, spreadable fats and oils, such as margarine and butter, have been experiencing declining sales, due to
consumer beliefs that these products will raise cholesterol and trans-fat intake.
According to a Datamonitor report on Brazilian market trends, the Brazilian population exhibits similar consumption patterns
to the rest of the world. The better-for-you domestic sector will experience soaring consumption growth. Light diets with lowcalorie labels are becoming mainstream, and will increase at the same rate as observed elsewhere. Fresh food items, fruits,
yogurts, bars, appetizers and in-home meals will undergo a double digit growth.
PAGE 7
NUTRACEUTICALS
Much of the growth potential for nutraceutical foods is a result of changing demographics, as Brazil has
undergone a shift in eating habits in the past few decades.
Brazil is experiencing the same overweight/obesity epidemic observed in North America and elsewhere, especially in urban
areas, where body image is highly important. In addition, the aging population is concerned about the increased risk of
diseases like diabetes, heart disease and cancer. As a result, healthy lifestyles, including diet, are becoming part of
mainstream awareness. One example of this awareness is the emergence of light food restaurants, which offer healthy and
convenient foods and snacks. These light food restaurants are beginning to take serious market share from fast food
restaurants.
Also of note is the steadily growing diet category in Brazil. The market for slimming products should reach US$ 550 million
by the end of the decade.
The nutraceuticals and functional food industries in Brazil are roughly divided into two major industry sectors: the over-thecounter (OTC) market, and the health and wellness food market. Neither market is believed to have reached
maturity, which indicates there is good potential for future growth.
The OTC market was affected by the overall economy as well as efforts by the government to institute price controls.
Consumption also retracted slightly, indicating the lack of consumer interest in what are often considered superfluous
purchases.
Pharmacies are still the primary means of distributing OTC products, both through pharmacy chains and independent
retailers. However, owners of independent pharmacies will often form alliances with other independents and use their
purchasing power to get better bargains.
VITAMINS
Vitamins continued to show double-digit growth in 2008, with an increase of 11% in value terms.
Multivitamins account for the bulk of vitamin sales, and drove the strong performance of this
sector.
The dynamic growth of multivitamins has attracted more investment from pharmaceutical
companies, which have extended their portfolios of vitamins with products targeted specifically to
a segment of the population.
Vitamin C is the most popular single vitamin, as it is associated with prevention of colds and flu. In
the winter season, between May and July, manufacturers make significant investments in
advertising on television, and in magazines to promote their brands, backed by claims that added
minerals or glucose contribute to fortify the body.
Child-specific vitamins are not popular in Brazil. Instead of giving child-specific vitamins, parents
prefer to provide their children with fortified foods, which are rich in vitamins and minerals.
Products that have an antioxidant action, combat free radicals, and slow the signs of aging, such
as vitamin E, lycopene and grape seed extract, are an important area to explore since Brazilians
tend to be concerned about their appearance.
PAGE 8
FRESH AND NATURAL FOODS
There is a vast market for fresh food and foods that have natural health benefits. In 2008, Brazilians
consumed 171 million tonnes of fresh food.
Most Brazilians cannot afford to pay a premium for organic food. Consequently, the market for organic food is very limited.
Although this sub-sector has grown quickly from 2004 to 2009, this is largely attributable to the growing affluence of
consumers in major urban centres.
Specialty cheese is only in demand by a small, affluent part of the population. Brazilians generally cannot afford to
purchase specialty cheeses. The focus is on cheaper, more generic types of cheese.
A trend in the Brazilian chocolate confectionery market is the move away from milk chocolate to dark chocolate. Part of
this shift is due to the perceived health benefits of eating a more natural health product. However, this trend has been
limited mainly to wealthier Brazilians who can afford to pay a premium for dark chocolate.
Fruit and vegetable juice is a major market in Brazil, accounting for nearly US $2 billion dollars in retail sales alone. The
majority of juices that are sold are classified as nectars. A nectar contains between 25% and 99% juice, and contains pulp.
Juices, which are classified as 100% pure juice, are not as popular because they are expensive. The main consumer segment of 100% juice is women over the age of 50. Finally, fruit drinks (less than 25% juice) are the fastest growing
segment of the fruit and vegetable market. These products are consumed for their great taste.
DISTRIBUTION CHANNELS
As identified by Euromonitor, supermarkets and in particular hypermarkets, have become more and more important in the
distribution channels. Brazilian hypermarkets make around 80% of sales of Health and Wellness Food and Beverages .
Brazil. Retail Sales of Health and Wellness Food and
Beverages, by Distribution Channel.
US$ million
2004
2005
2006
2007
11250.4
12400.0
14047.6
15783.2
10882.8
11929.4
13478.2
15118.3
Discounters
287.8
364.5
435.1
504.0
Small Grocery Retailers
46.6
63.2
79.9
95.3
Convenience Stores
-
-
-
-
Independent Small
Grocers
Forecourt Retailers
38.9
53.5
67.5
79.8
7.7
9.8
12.4
15.5
Other store-based retailing
33.2
42.9
54.3
65.6
Other Grocery Retailers
27.6
35.9
45.6
55.6
Non-Grocery Retailers
5.5
7.0
8.7
10.0
32.1
48.4
61.7
75.2
Vending
-
-
-
-
Homes shopping
-
-
-
-
Internet Retailing
32.1
48.4
61.7
75.2
-
-
-
-
11282.5
12448.4
14109.3
15858.4
Store-Based Retailing
Supermarkets/Hypermarkets
Non-Store Retailing
Direct Selling
Total
Source: Planet Retail LTD
Source: Euromonitor
PAGE 9
COMPANIES
Major companies have begun to focus on and advertise the nutritional content of their products, as
Brazilians become more aware of international trends toward
proper nutrition.
In the beverage aisles, Kraft and Nestlé are the big two,
accounting for more than 64% of cold and hot functional drinks
in 2007.
Activia (Danone) arrived in Brazil in 2004, and today it is the
leading brand within the country’s sector of fresh dairy products,
with 14% market share.
The soy drinks market is expected to double in size in Latin
America. Brazil is currently the largest consumer of soy drinks
in Latin America and is expected to continue to be one of the
largest markets over the next five years. AdeS (owned by
Unilever) is currently the leading brand in Brazil, and it
competes by marketing itself as a fruit juice rather than as a soy
drink.
Brazil- Company Shares (by Global Brand
Owner)
Retail Sales US$ in millions
2005
2006
2007
Nestlé SA
1337.7
1392.1
Cadbury
Schweppes Plc
735.2
Coca-Cola Co, The
Danone, Groupe
Year-onYear Growth
(%)
05/06
06/07
1468.7
4.1
5.5
851.3
885.9
15.8
4.1
616.2
460.5
646.9
-25.3
40.5
360.7
419.5
554.2
16.3
32.1
PepsiCo Inc
264.9
331.0
472.3
24.9
42.7
Kraft Foods Inc
325.8
363.3
466.5
11.5
28.4
Perdigão
Agroindustrial SA
4.5
197.1
256.6
4307
30.2
Yakult Honsha Co
Ltd
178.3
183.6
242.2
3.0
31.9
Edson de Queiróz,
Grupo
190.2
195.9
200.8
3.0
2.5
Unilever Group
197.7
211.8
185.5
7.1
-12.4
Source: Euromonitor
NEW PRODUCTS
Number of New Functional Product Introductions - Brazil, 2009
Source: Mintel
PAGE 10
The following are some samples of new products introduced in Brazilian Market in 2009 :
Product Description
Verde Campo Bio+ Yogurte Bebível Semi Desnatado (Semi-Skimmed Yogurt Drink) is available in
an Orange, Carrot and Honey flavour, and is enriched with Bifidobacteria for intestinal regularity, fibre
for digestion, and a mixture of cereals. This product is free from added sugar and is retailed in a 500
gram bottle
Company: Verde Campo
Source: Mintel GNPD
Product Description
Dicel Farinha de Trigo Integral (Wholemeal Wheatflour) is rich in fibre. This
product is available in a 500 gram pack. Also available is Farinha de Linhaça
(Linseed Flour), which is designed to be added to cakes, breads, granolas,
pastries, biscuits and smoothies. This product is said to be rich in omega 3,
fibres, proteins and minerals. According to the manufacturer, this product also
aids the digestive system and reduces cholesterol. The easily-absorbed flour is
free from gluten and is available in a 150 gram pack.
Company: Indústria e Logística Westhonklauss Constante
Source: Mintel GNPD
Product Description
Redubio Shake Diet offers Pó para Preparo de Bebida para Redução de Peso (Weight
Loss Shake). This is a low-fat meal replacement powder with no sugar or trans fat.
This gluten-free product claims to be nutritionally complete with protein, vitamins,
minerals and fibre. It also contains ingredients rich in soluble and insoluble fibre, to
help maintain good intestinal transit and control hunger. The easy and quick-toprepare shake features a chocolate flavour, and is retailed in a 420 gram pack, which
can yield up to 14 servings.
Company: CIMED
Source: Mintel GNPD
Product Description
Sanavita Sanakids Pó para Preparo de Bebida Enriquecida Sabor Chocolate (Chocolate
Drink Mix) is enriched with 19 vitamins and minerals, and is said to be the only product
with soya, oat, inulin and milk proteins. It claims to contain fewer calories and less sugar
than similar products. It also claims to help the intellectual and physical development of
children. This product contains no trans fat or artificial colourings, and retails in a 450
gram recyclable pack.
Source: Mintel GNPD
PAGE 11
ANNEX "A" DEFINITIONS
This report analyzes the market for health and wellness food and beverages in Brazil. For the purposes of this study,
the market has been defined as follows:

Functional Foods—Items to which health ingredients have been added. These functional foods and beverages should
have a specific physiological function and/or are enhanced with added ingredients not normally found in the product,
providing health benefits beyond their nutritional value. The categories covered in this segment are: added calcium,
functional digestive, functional immune system, functional bone health, and vitamin/mineral fortified.
Better-For-You Foods—This category includes packaged food and beverage products where the amount of a
substance considered to be less healthy (fat, sugar, salt, carbohydrates) has been actively reduced during production.
To qualify for inclusion in this category, the “less healthy” element of the food stuff needs to have been actively removed
or substituted during processing. This should form part of the positioning/marketing of the product. Products which are
naturally free of fat/sugar/carbohydrates are not included. The categories covered in this segment are: low/no/reduced
fat, low/no/reduced sugar, low/no/reduced sodium, low/no/reduced glycemic, and no/low/reduced cholesterol.
Nutraceuticals—Natural substances are found in foods that have medicinal properties to treat or prevent certain
diseases. These natural substances can be added to the diet by increasing consumption of certain foods, or can be
taken as nutritional supplements. Products typically claim to prevent chronic diseases, improve health, delay the aging
process, and increase life expectancy. The categories covered in this segment are: vitamins, sports products, herbal
supplements, and meal replacement /slimming products.
Organic—Products that are certified organic by an approved certification body. Depending on the country, such
products are called “organic,” “biological” or “ecological”.
The usage of the above categories is taken from both Euromonitor International and Mintel. These groupings represent
globally accepted classification and product identification for the purpose of data collection.
PAGE 12
The Government of Canada has prepared this report based on primary and
secondary sources of information. Although every effort has been made to
ensure that the information is accurate, Agriculture and Agri-Food Canada
assumes no liability for any actions taken based on the information
contained herein.
Health and Wellness Trends in Brazil
© Her Majesty the Queen in Right of Canada, 2010
ISSN 1920-6593 Market Analysis Report
AAFC No. 11222E
Photo Credits
All Photographs reproduced in this publication are used by permission of
the rights holders.
All images, unless otherwise noted, are copyright
Her Majesty the Queen in Right of Canada.
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please contact:
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