When COVID-19 was first reported in Brazil, consumer confidence was already shaken – and struggling to recover – due to the last major economic crisis in 2015/2016. Nevertheless, before the outbreak, unemployment rates were just starting to decline and 2020 seemed like it would be a positive year for starting another intense replacement cycle within refrigeration appliances – especially with so many new product launches focusing on connected devices.
While middle-income consumers adopted a more cautious approach to spending, the availability of the federal government’s financial aid of BRL600 was a game changer for many lower-income consumers some of whom used the money to acquire their very first refrigeration appliances – especially those which are entry level. For many households, the money was considered as a welcome bonus, not necessarily to be used to purchase basic items like food, beverages, and personal hygiene products, but also for basic appliances for their homes, with refrigeration appliances being one of the key beneficiaries.
With home seclusion, new drinking and eating habits were seen among many households, especially higher-income ones. One of the most significant of these was an increase in wine drinking.
Positioned as the first fridge freezer with POWERvolt® technology, Evolution’s main selling point is its greater electricity efficiency. Apart from being more resistant to volatility in the electricity supply – bearing variations of 90v to 310v – the product also features Digital Inverter™ technology, which automatically adjusts the compressor speed, according to the demands of the unit.
Despite prevailing political and economic instability within Brazil sales of refrigeration appliances are expected to bounce back strongly in 2021, with sales set to return to pre-COVID-19 levels by 2022. Low consumer confidence is nonetheless expected to ensure a more conservative attitude towards replacing durable goods, limiting stronger growth over the forecast period as a whole.
With the devaluation of the Brazilian real in 2020 production costs are under pressure with the industry placing a significant dependence on imported components and logistics costs. In the first quarter of 2020 the exchange rate dropped sharply and it continued to fall throughout the year, with limited positivity for any significant recovery during the early years of the forecast period.
With the rolling out of a 5G internet network in Brazil, there is a growing focus on the internet of things and connected devices are becoming increasingly popular. With the home seclusion seen in 2020 many consumers were forced to work and study from home, with many households investing in higher speed broadband internet to cope with their increased demands.
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Understand the latest market trends and future growth opportunities for the Refrigeration Appliances industry in Brazil with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Refrigeration Appliances research and analysis database.
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