Home and Garden in Brazil

A number of positive indicators support increasing demand for home and garden in Brazil

Home and garden in Brazil continued to show signs of recovery in 2019 amidst an improving economy, with the year marked by cautious optimism following a year of uncertainty in 2018 with the country electing a new president, Jair Bolsonaro, and a lorry drivers’ strike which added to distribution problems for many producers and retailers. While the new president was forced to immediately address a number of issues to prevent the country from entering another recession, including spending reforms in terms of labour, social security, tax and government spending, the unemployment rate continued to gradually decline, contributing to a more positive attitude amongst many Brazilians with gradually increasing household budgets.

Sustainability and desire for calming environments within increasingly urban landscape

Several trends influencing sales of certain home and garden categories remained relevant in Brazil in 2019. Increasing urbanisation is leading to a growing number of Brazilians living in apartments, with vertical residence resulting in demand for creative ways to enhance their living environments such as smaller or multifunctional furniture or contemporary but affordable homewares.

Increasingly fragmented competitive landscape due to entry of independent small players

The competitive landscape of home and garden in Brazil continued to be led by local producers such as Tramontina SA and Coteminas SA, although the market became increasingly fragmented overall in 2019, with dominant smaller players under “others” particularly notable within garden care, horticulture, kitchenware, and indoor furniture. Greater concentration on the other hand, was evident amongst decorative paint, gardening equipment, and power tools with big global names such as Bosch and Black+Decker leading, although local brand Tramontina started to make stronger gains in cordless drills.

Increasing importance of adopting omnichannel strategy to expand consumer reach

Home and garden specialist retailers continued to dominate the distribution of home and garden in Brazil in 2019 as many local consumers like to browse physical stores, handling, and testing products before purchasing, particularly for big-ticket items that require significant investment. They also appreciate being able to obtain expert advice from trained sales assistants in stores.

Positive economic indicators set to support stronger performance by home and garden over the forecast period

Brazil is predicted to experience a more positive economic outlook following the election of Jair Bolsonaro as president. This scenario is also likely to lead to greater investment in the country by both foreign and domestic investors, with fiscal and social security reforms expected to be approved, which is encouraging to future investors.

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