Brazilian organic consumption was up 35% in 2015 to an estimated Euros 900M. The forecast for 2016 is for a growth of 30% in the organic market, taking the market to $1.5B by 2017 . High import duties and devaluation of currency are currently presenting challenges for UK exports.
Organic food production is growing at a rate of between 30 and 50 percent per year.
Consumer Preferences & Channels
The majority of organic products are fresh vegetables and fruit; however, there are a growing number of organic food processors that are involved with processing tea, coffee, mate tea, jams, oils, breakfast cereals and dairy products.
Consumer price difference between organic and conventional foods:
- Organic cereals cost up to 50 percent more than conventional cereals
- Organic fruits cost 20 to 40 percent more than conventional fruits
- Organic vegetables cost 20 to 40 percent more than conventional vegetables
66 % of the sales in the domestic market are done via supermarkets, 33% percent is via independents and specialized stores. Key players across grocery are Casino $24.7B Carrefour at $13B and Mundo Verde at 138.6M
Brazilian organic legislation is of the more restrictive type, for imported product it does not recognise existing certifications, and instead it requires all operators in the supply chain to be certified to the Brazilian regulation directly. This include all sub-ingredients, which must also be inspected to this standards.
This increases cost for non-domestic and supply chain is reliant significantly on operators.
The regulations were introduced in 2003 and significantly tightened in 2011. Two label systems exist domestically – Audit and PGS (Participatory). The third Social Control system has no seal or logo.
Sources & Links to Further Info
Ministry of Agriculture (MAPA) - http://www.agricultura.gov.br/
Apex Brazil - http://www.apexbrasil.com.br/home/index