Opportunities in Health Food Sector

An Expert's View about Sales in Brazil

Last updated: 23 Feb 2011

Health Food Sector in Brazil

Brazilian consumers are becoming increasingly interested in nutritious foods and beverages that fit into a healthy lifestyle. Because of this trend, large Brazilian retailers have invested to create private label brands to position their products as tasty and convenient but also healthy and nutritious. Grupo Pão de Açucar released its Taeq brand in 2006, Carrefour launched Viver in 2007 and Wal-Mart released Sentir Bem in 2009. These private labels include a wide-range of products that include light, diet, soy-based, organic and fortified foods and beverages.

Although Taeq, Viver and Sentir Bem are not now close to overtaking the leading positions of the many multinational players in the Brazilian market, the local brands are slowly winning market share from the long established international brands active in the health and fitness sector. (The leading international players in this sector in the Brazilian market include companies such as Dairy Partners Americas Brasil, Coca-Cola Indústrias, Cadbury Adams Brasil, Danone and Kraft Foods.)

Supermarkets accounted for the bulk of sales of health and fitness foods and beverages. However, health food specialty stores such as Mundo Verde, Universo Organico and others, are springing up in the industrialized southeast of Brazil, in cities such as Rio de Janeiro and Sao Paulo, and have been gaining share from the traditional grocery stores.

The heath food specialty stores in Brazil provide U.S. producers of health and fitness foods/beverages with an excellent opportunity to enter this market sector, which is already rapidly growing and will likely grow more quickly in the future. Small and medium-sized local companies such as Mãe Terra, Jasmine, Quinua and Vitao that produce health and fitness foods and beverages, have greatly increased their production and this higher than average growth has been driven by a rapidly growing portion of the Brazilian population that is becoming more health-conscious and a rapidly growing number of health food stores specialty stores that allowed the local producers to greatly increase their distribution.

 

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Posted: 26 January 2011, last updated 23 February 2011

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