Brazil natural food and drinks market size was valued at $7,829.1 million in 2021 and is projected to reach $16,546.5 million by 2031, registering a CAGR of 8.1% from 2022 to 2031.
Natural food and drinks are those that have undergone minimal processing and don't have any artificial additives, preservatives, or ingredients. In comparison to conventional food and drink products, they frequently use whole, nutrient-dense ingredients that are thought to be healthier and more sustainable.
The market for organic, plant-based, gluten-free, non-GMO, and functional food and drinks that are fortified with vitamins, minerals, and other nutrients encompasses a broad range of products in Brazil. Natural drinks such as milks made from plants, herbal teas, and fruit and vegetable juices are also included in the report.
The demand for natural, plant-based food and drinks is anticipated to rise as more individuals switch to plant-based diets for ethical, environmental, and health reasons. Customers have a greater concern with the ingredients that go into their food and drinks and are searching for products with simple, easily recognized ingredients and fewer additives and preservatives.
Market Dynamics
The rising desire for healthier and more environmentally friendly food options is one of the major factors driving Brazil natural food and drinks market. Consumers are becoming more and more interested in products that are both beneficial for their health and the environment, and they are even prepared to pay more for them. Younger consumers, who are more likely to seek out natural and organic food products, are particularly susceptible to this tendency.
Brazil natural food and drinks market is also being driven by technological developments that make it simpler for companies to create and distribute these products. For instance, improvements in plant-based protein technology are enabling businesses to produce meat substitutes that imitate the flavor and texture of real meat, while advancements in packaging and distribution are making it simpler for natural food and beverage products to reach consumers in remote or underserved areas.
An increase in disposable income raises the level of living. Due to restricted schedules and the numerous health issues caused by conventional foods, urbanization is growing, the working population is increasing, and there is a surge in demand for nutritious and high-quality food. Thus, the Brazil natural food and drinks market growth is driven by the increase in customer preference for natural foods and drinks to maintain a balanced diet. The rise of Brazil natural food and drinks market is also fueled by consumers' increased ability to purchase premium natural food and drinks due to the economy's development.
Customers also prefer to buy natural food and drinks from retailers, including supermarkets, hypermarkets, and retail stores, but the trend is shifting to online platforms. Brazil natural food and drinks market demand is being further boosted by consumers' growing preferences for nutrient-dense products in the health drink industry.
The market segment for online sources of natural food and drinks is anticipated to expand significantly over the next few years as a result of the rapid adoption of mobile devices, rising e-commerce sales, simple payment methods, and enticing discounts over brick-and-mortar establishments. A further factor driving the use of online sales is the rise in the working population, busy lifestyles, and hectic work schedules.
The COVID-19 pandemic caused a lockdown in the majority of countries. The lockdown was put in place to lessen communal transmission among the public, but it has caused some operational challenges for companies that produce natural food and drink products. Due to the farmers' and traders' limited mobility, fewer raw materials were given than normal. As a result, the processing capacity has been hampered by the decreased availability of raw materials, which has also caused prices to rise and the supply chain to become disrupted. Supply chain disruption limited the market's growth, but certain favorable results aided it throughout the COVID-19 outbreak.
A major trend propelling the expansion of the natural food and beverage market not only in Brazil but also internationally is the rise in health and wellness awareness. Customers are increasingly conscious of how their diet affects their overall health and are looking for natural foods and drinks that have positive health effects. This tendency is especially noticeable in Brazil, where rates of chronic diseases like obesity, diabetes, and heart disease are very high. Due to this, there is an increase in demand for natural foods and drinks with health advantages, such as those that are rich in protein, fiber, and antioxidants.
Many natural food and drink companies in Brazil are launching products that are especially made to cater to the needs of health-conscious consumers in an effort to cash in on this trend. This includes foods that are enriched with vitamins, minerals, and other nutrients as well as those that are low in sugar, salt, and fat. The demand for natural foods and drinks is thus being driven by Brazilian consumers' increased awareness of health and wellness, and this trend is expected to continue in the years to come. Hence, natural food and drink companies that can provide products that satisfy the expectations of consumers who are health-conscious are well-positioned to flourish in the Brazilian market.
Another significant trend fueling the expansion of the natural food and drinks sector in Brazil is the demand for products made from plants. Similar to many other nations, Brazil has experienced a boom in vegetarianism and veganism as more and more people choose to follow plant-based diets. Many issues, such as worries about animal welfare, environmental sustainability, and health, are driving this movement. Many consumers find plant-based products appealing since they are frequently promoted as being healthier and more environmentally friendly than their animal-based competitors.
Many natural food and drink manufacturers in Brazil are introducing new plant-based products to fulfill this demand, including meat alternatives, plant-based milks, and plant-based protein powders. In addition, several traditional Brazilian ingredients are already plant-based and are being marketed as such, like quinoa and acai. Hence, Brazil natural food and drinks industry is experiencing a major trend toward the demand for plant-based products, which is anticipated to continue in the future. Companies are well-positioned to flourish in Brazil natural food and drinks market if they are able to provide consumers with high-quality, plant-based products that fulfill their needs.
The market for natural food and drinks in Brazil is expanding as a result of another major trend that focuses on sustainability and environmentally friendly products. Brazilian customers are increasingly interested in products that are environmentally friendly and sustainable because they are worried about how their purchases will affect the environment. Concerns about climate change, deforestation, and water scarcity are a few of the factors driving this trend. Customers are becoming more interested in products that use ingredients obtained sustainably, are manufactured with eco-friendly practices, and are packaged with eco-friendly materials.
Several Brazilian manufacturers of natural food and drinks are introducing products that have received sustainability or eco-friendliness certification in order to satisfy this need. Among these are products created with organic or Fairtrade ingredients, as well as products with recyclable or biodegradable packaging. As a result, the Brazilian market for natural food and drinks is experiencing a significant trend that will probably continue to develop over the next several years: a need for sustainable and environmentally friendly products. Companies are well-positioned to prosper in this sector if they can provide high-quality, environmentally friendly products that satisfy the demands of environmentally concerned customers.
Segmental Overview
Accordi ng to Brazil natural food and drinks market analysis, the Brazil natural food and drinks market is segmented on the basis of product type, distribution channel, and packaging. By product type, the Brazil natural food and drinks market is classified into natural food and natural drinks. By distribution channel, the Brazil natural food and drinks market is divided supermarkets/hypermarkets, natural or health food store, convenience stores, online retails, and others. By packaging, it is bifurcated into packaged and bulk & loose quantity.
By Product Type
The natural drinks segment, as per product type, dominated Brazil natural food and drinks market in 2021 and is anticipated to maintain its dominance throughout the Brazil natural food and drinks market forecast period. Brazilian consumers are becoming more health conscious and are looking for natural drinks that offer important benefits including hydration, energy, and immunity support. Brazilian manufacturers of natural drinks are introducing innovative products including plant-based milks, probiotic drinks, and functional drinks.
By Product Type
Rise in demand for natural and healthy beverages among Brazilian consumers has been fueling the market for Natural Drinks to expand in recent years. There is a growth in health-consciousness among Brazilian consumers and they look for natural beverages that provide significant advantages including hydration, energy, and immunity support.
By Distribution Channel
The supermarkets/hypermarkets segment dominates Brazil natural food and drinks market. Due to the wide variety of food and drinks that are available under one roof, as well as the adequate parking and convenient operating hours, supermarkets and hypermarkets are becoming more popular. The popularity of supermarkets and hypermarkets is further boosted by increased urbanization, an increase in the population of working class people, and competitive pricing.
By Distribution Channel
Supermarket/hypermarket is gaining popularity due to the availability of broad range of food & beverages under a single roof, in addition to ample parking space and convenient operation timings. Consumers prefer to buy products that are on sale. Moreover, products are arranged nearby, which aids buyers for easy comparison among related products, thereby helping consumers to decide which product to buy.
By Packaging
The packaged segment exhibits the fastest growth in Brazil natural food and drinks market. Natural foods and drinks that are packaged have undergone minimum processing and lack additives, preservatives, and artificial ingredients. The flavor and nutritional value of the ingredients are frequently preserved by packaging. Consumers are becoming more concerned with their health and wellness and are looking for wholesome foods and drinks. Consumers can conveniently obtain the nutrients they require without having to cook food from scratch by purchasing packaged natural foods and drinks.
By Packaging
Natural food and beverage products that are Packaged are those that have undergone minimum processing and do not have any artificial flavors, colors, or preservatives. Natural ingredients including fruits, vegetables, nuts, and seeds are often used to manufacture these products, which are then Packaged for simplicity of use and convenience.
Competition Analysis
The major players analyzed for the Brazil natural food and drinks industry are Bunge Limited, Archer-Daniels-Midland Company, General Mills, Inc., Nestle S.A., Hortifruti Natural da Terra, Camil Alimento S.A, Mars Incorporated, Danone Inc., Lactalis Group, Vapza Alimentos S/A. Key players operating in the Brazil natural food and drinks market have adopted product launch, business expansion, and mergers & acquisitions as key strategies to expand their Brazil natural food and drinks market share, increase profitability, and remain competitive in the market.
Some Examples of Acquisition in the Market
- Bunge Limited acquired 33% share in Sinagro which is associated company UPL Ltd. It is mainly engaged in sales of range of agricultural products in Brazil. Bunge Limited is expected to expand its grain origination capabilities and its access to producers in Brazil with this acquisition.
- Archer-Daniels-Midland Company acquired Yerbalatina Phytoactives which is a Brazilian plant-based products manufacturer. Through this acquisition it is expected to expand its plant-based product portfolio and strengthen its business presence.
- Nestlé S.A. division Nestlé Health Science acquired Brazil based nutrition and health company Puravida to expand its presence in vitamins, mineral, herbal and natural products.
- Lactalis Group’s subsidiary Lactalis do Brazil acquired Itambé which is a Brazil based dairy company. With this acquisition it has expanded its portfolio in natural drinks product line and strengthened its business presence in Brazil.
Some Examples of Expansion in the Market
- Bunge Limited launched a new technological platform Vector which mainly focuses freight scheduling via mobile phone. With this launch it is anticipated to optimize its business operations for farmers and procurement of products.
- Nestlé S.A. announced investment of to expand overall industrial capacity in Brazil. It is anticipated to focus on increasing production output and is expected to introduce modern technologies and logistics initiatives strengthen its operations in South America under this expansion.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the current Brazil natural food and drinks market trends, estimations, and dynamics from 2022 to 2031 to assist to identify the prevailing Brazil natural food and drinks market opportunities.
- Major countries in each region are mapped according to the individual Brazil natural food and drinks market revenue.
- The region-wise and country-wise market conditions are comprehensively analyzed.
- This study evaluates the competitive landscape and the value chain analysis to understand the competitive environment across geographies.
- An in-depth analysis of Brazil natural food and drinks market segmentation is provided to assist the prevailing market opportunities.
Brazil Natural Food and Drinks Market Report Highlights
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Analyst Review
The perspectives of the leading CXOs in the Brazil natural food and drinks market are presented in this section. There is a rapid expansion of natural food and drinks market in Brazil due to rise in consumer demand for products that are healthier and more environmentally friendly. Brazilian consumers are health conscious and look for products that are natural, non-GMO, and additive- and preservative-free. This trend fuels the expansion of natural food and drink retailers and the introduction of natural products into conventional supermarkets and other retail outlets.
Several companies have initiated investments in this industry as they realize the potential of the market for natural food and drinks in Brazil. For instance, Danone, one of the biggest food and beverage companies in the world, is well-established in Brazil and has increased the number of natural and organic products it offers in the country.
The CXOs further added that the market for natural food and drinks in Brazil faces significant obstacles despite the development potential. Companies may find it challenging to manufacture and market natural products, for instance, due to the prohibitive cost of raw materials and the complexity of legislation. The COVID-19 pandemic has also affected consumer behavior and supply networks, which has caused uncertainty and market instability. It is anticipated that the market for natural food and drinks in Brazil would expand over the coming years due to customer demand and investments from enterprises in this industry.
Brazil natural food and drinks market size was valued at $7,829.1 million in 2021 and is projected to reach $16,546.5 million by 2031, registering a CAGR of 8.1% from 2022 to 2031.
The forecast period in the Brazil natural food and drinks market report is 2022 to 2031.
The base year calculated in the Brazil natural food and drinks market report is 2021.
The top companies analyzed for Brazil natural food and drinks market report are Bunge Limited, Archer-Daniels-Midland Company, General Mills, Inc., Nestle S.A., Hortifruti Natural da Terra, Camil Alimento S.A, Mars Incorporated, Danone Inc., Lactalis Group, Vapza Alimentos S/A.
The natural drinks segment is the most influential segment in the Brazil natural food and drinks market report.
The packaged natural food and drinks segment holds the maximum market share of the Brazil natural food and drinks market.
The company profile has been selected on the basis of revenue, product offerings, and market penetration.
The market value of the Brazil natural food and drinks market in 2021 was $7,829.1 million.
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