The Brazilian Consumer Profile

An Expert's View about Sales in Brazil

Last updated: 31 May 2011

One of the greatest attractions of Brazil is the large pool of consumers. Brazil currently has a population of nearly 190 million, and is projected to reach 195 million by 2010. Moreover, Brazil is a young country, with a median age of around 28. This is relatively low compared with the average age of around 37 in the US, 44 in Japan and 41 in Hong Kong. About 50% of its population falls into the 15-45 age group, which has the highest purchasing power and the greatest willingness to spend.

Thanks to rising commodity prices and favourable fiscal and monetary policies by the Brazilian government, Brazilian households are earning higher incomes and spending more to improve their living standards. Over the period 2003-2007, the average gross income in Brazil increased by more than 124%. In addition, the “informal” economy is estimated to account for around 30% of the official GDP, though the Brazilian government adopted a new GDP methodology in March 2007 to take into account the contribution of the informal economic activities. Therefore, it is believed that the actual income level in Brazil is considerably higher than the aforesaid figures

On the whole, housing is estimated to account for 21% of household expenditure in Brazil. Together with the 16% share of the food, beverages and tobacco, Brazilian consumers are estimated to spend some 70% of their income on goods and services. With higher incomes, Brazil’s demand for goods and services has been increasing quite steadily in recent years. Major goods and services of household expenditure include transport, household goods and services, communications, leisure and recreation, clothing and footwear, health goods and medical services, and education.

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Posted: 30 May 2011, last updated 31 May 2011

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