Health and wellness packaged food and beverages benefited from a continued improvement in the Brazilian economy in 2018 with consumers becoming more willing to spend on non-essentials. Naturally healthy products remain the largest area of health and wellness with these perceived to be the healthiest option, with consumers placing a growing focus on the ingredients in their food and drink.
Despite the economic improvement seen in Brazil in 2018 the cost of many health and wellness products remained unaffordable to the average consumer. This situation was not helped in 2018 by the truckers’ strike which saw self-employed truck drivers striking over the high cost of diesel, among other factors.
Multinational companies including Mondelez, Nestlé, Danone, PepsiCo and Coca-Cola continued to account for the leading positions within health and wellness in Brazil in 2018, with these benefiting from their strong brand names, widespread distribution and large marketing budgets. As well as developing their own brands these global giants have also looked to acquire successful local health and wellness brands, which was a tactic used by companies such as Coca-Cola and Unilever towards the end of the review period.
Supermarkets and hypermarkets account for most sales of health and wellness in Brazil with these stores carrying the widest product range while also being the most popular shopping channels for weekly grocery shopping. Discounters and internet retailing continued to benefit from sales to price-conscious consumers, who are more willing to search out the best deals.
With the Brazilian economy set to continue its recovery over the forecast period health and wellness packaged food and beverages should also see steady growth in current value and retail volume terms. This situation should also allow more consumers to gain access to these products as incomes rise and awareness of the benefits of these products increases.
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This industry report originates from Passport, our Health and Wellness market research database.