Brazil Country Profile

USDA’s Agricultural Trade Office (ATO) in Sao Paulo, hereinafter referred to as “Post,” and Food Export’s In-Market Representative report that Brazil, being the largest economy in Latin America, is a major importer of agricultural products from the world and the largest importer of South America, with the United States being Brazil’s second-largest trading partner for all foreign-trade products.

In 2022, exports of overall U.S. agricultural goods to Brazil increased 40% from January to November, reaching US$912 million, while processed food registered a 16% growth, amounting to almost $219 million in the same period. Brazil is also one of the largest economies in the world with its Gross Domestic Product (GDP) having increased by 3.1% in 2022 (estimate) compared to the previous year. Despite the COVID-19 measures, the industry recovered from the impact and returned to the production levels of before the crisis.

Additional Market Data

Advantages

Importers of high-value products are constantly searching for unique/innovative items.
The positive overall perception of U.S. beverages, food, and cuisine, and their high quality and diversity.
The food processing, retail, and HRI sectors are growing in the country.
Consumers are investing more time eating at home and developing cooking skills, being more willing to look for better-quality food and cooking ingredients.
Brazil follows international food trends and keeps looking to launch innovative products with high-added value.
A major producer of animal protein, there are good prospects in animal feed, with special ingredients.

FAS Sao Paulo suggests that when approaching the Brazilian market, exporters should be aware that most imported foods and beverages are not priced competitively compared to locally produced products. The Brazilian food industry is well developed and major multinational companies have a consolidated presence in the market, making the sector highly competitive. A common mistake U.S. Company’s make is assuming that products that fit well in other Latin American countries will fit well in the Brazil market. In general terms, a product imported from the United States or Europe reaches 3-5 times the Ex-Works (EXW) price at retail. U.S. exporters should bear in mind that when an imported product reaches supermarket shelves it will fit in the premium price category. For this reason, premium attributes must be recognized by consumers.

The Brazilian retail sector is pivotal in the food distribution system, capturing about 80% of food and beverage flows, besides being one of the major employers of the country and being available in various formats, such as neighborhood stores, supermarkets, hypermarkets, cash-and-carry, and e-commerce.

According to the Brazilian Supermarket Association (ABRAS), the retail sector accounted for over US$110 billion in 2021, and reports continued growth in 2022 post-pandemic. With modern technologies, advanced management capacity, and higher levels of investment to improve efficiency, the food retail sector has been turning into a highly attractive segment with intensive competition. In addition, supermarkets are the main channel for imported American products, with the main food products being processed products, alcoholic beverages, condiments and sauces, dairy products, food preparations, meat products, nuts, and sweets and snacks.

Despite part of the population perceiving U.S. foods as overprocessed and unhealthy, in general, Brazilian importers and consumers have a positive perception of American foods, emphasizing the quality of the products. In the 2021/2022 fiscal year (July/June), Brazil imported over $260 million of consumer-oriented products from the U.S. and over US$4 billion from the world, with the U.S. being its fifth major supplier, with a 5% market share and offering room to grow in share.

Top product prospects include beer, wine, distilled spirits, breakfast, bakery, condiments and sauces, chocolate and confectionery, dairy products, fresh fruit, juices, meat products, processed fruits, and vegetables, ready-to-eat/grab and go, seafood, soup and other food preparations, tree nuts, and dried fruit.

In 2021, the Brazilian foodservice industry grew 26% compared to the previous year, reaching revenues of $85.2 billion. Being characterized by small-to-medium-size, family-owned establishments, with chains representing 16% of overall sales and small-and medium-size (independent) operators accounting for 84%. Despite the restrictions implemented in 2020 due to COVID-19, with the high vaccination rate and the reopening of bars, restaurants, and in-person events in 2021, the foodservice industry managed to recover and keep growing – estimates account for over US$100 billion in sales in 2022. On the other side, even with the total reopening of bars and restaurants, the digitization of foodservice is a trend that seems to be here to stay since consumers are increasingly ordering via apps and other delivery platforms.

Top product prospects include chocolate and cocoa products, dehydrated products, distilled spirits, functional foods, ingredients, immune system-strengthening foods, non-alcoholic and low-alcohol beverages, plant-based, pre-cooked, probiotics, processed foods, and wine.

In 2021, the Brazilian Food Industry Association (ABIA) estimated the food processing industry at US$171 billion, an increase of 16.9% compared to the previous year and expected to increase in 2022. With food representing 80% of total sales and beverages representing 20%, there is a rising demand for “clean ingredients” that can allow manufacturers to label their products as natural, organic, and gluten-free, given the new nutritional labeling legislation that will be fully in force by 2024. The United States is an important exporter of these and other food processing ingredients and additives to Brazil.

Top product prospects include caseinates and other casein derivatives, cocoa preparations, enzymes and prepared enzymes, essential oils, food preparations, hop pellets, lactose and lactose syrup, milk albumin, mucilage and thickeners, odoriferous substances, seafood, sweeteners, vegetable saps, hop extracts, yeast, and whey protein.

Brazil is one of the main agricultural and animal protein producers in the world, one of the major agricultural exporters, and has one of the largest agricultural inputs and animal feed industries in the world.

In agriculture, Brazil has surpassed the USA in soybean production – the largest crop in Brazil – and is also ranking first or second in other crops, such as corn and sugar cane. This production has been constrained since the Russia-Ukraine conflict began in 2022 as Brazil sources internationally over 85% of its fertilizers and is impacted by the high price points.

Even being a large corn producer, Brazil imports corn from the U.S. and has doubled its consumption in the last two decades – mainly due to poultry production. The country also depends on some other agricultural products, such as wheat, which accounts for over 50% of its demand sourced globally.

In animal production, Brazil ranks second, just behind the U.S., in bovine and poultry production. The country is one of the main meat exporters in the world and a large producer of animal feed, with demand for imported products, in special ingredients. Brazil has produced over 80 million MT (metric tons) of prepared animal feed products in 2022, according to the Animal Feed Association (Sindirações), with growth reported in swine, bovine, and pet food production.

The country produces over 14 million MT of poultry, 9 million MT of bovine, 4.7 million MT of swine, and almost 55 billion eggs. To supply the demand for feed and enhance meat production, Brazil relies on importing innovative, high-quality ingredients to be processed or added to local feed, and the U.S. is a main source. With profitability highly linked to feed, this is a price-sensitive market.

Brazil only imports small volumes of live animals – mainly for genetic enhancement and almost all of it from the U.S. Despite lower volumes, this sector has broken records year after year.

Top product prospects include animal feed preparations, acidifiers, additives, amino acids, antibiotics, antimicrobials, binders, enzymes, fertilizers, flavors, minerals, pet food (treats and ingredients), pre-mixes, pre and probiotics, sensory additives, supplements, sweeteners, vitamins, and yeast.

Country Profile

Discover more about the Brazilian market including overviews about the retail, food service, and food processing sectors. Events, resources, and more are linked throughout the profile.

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Market Overview

Market Opportunities and Challenges for U.S. Food Exporters in Brazil

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Retail Sector

Food Service Sector

Food-Processing Sector

Animal Feed and Agricultural Inputs Sector

Country Profile