BRAZILIAN ORGANIC MARKET

TRENDS AND NEWS

BIOFACH 2015
MING LIU – IPD/ORGANICS BRASIL
 Marketing to and from Brazil – Regulatory Issues

 Brazil has a recent organic Regulation 2011

 No signed regulatory equivalence agreement in International Trade
 Imported products have to comply with the Brazilian Regulation
 Limited Certification Body accredited by the MAPA
 Brazil has signed Equivalency Agreement of compliance evaluation system
 All imported products need to have the organic seal label
 Initial conversation has been established with CEE in 2014
 Marketing to and from Brazil – Regulatory Issues

• Food/drinks label is mandatory to have the national organic seal

• Imported food products need to comply with the regulation and have the seal
approved and printed in the label.
• Cosmetics are not regulated. Organic ingredients can be printed in
packaging of cosmetics products as ingredient
• Organic textile cotton can be certified and use the organic seal.
7 ACCREDITTED CERTIFICATION AGENCIES IN BRAZIL

INTERNATIONAL

NATIONAL

• Foreign certification agencies can be accreditted with the Minister

of Agriculture.
• At the moment 2 new foreign agencies submitted application to
be accreditted by the MAPA.
 Brazil – Organic Production Figures

• Total Production Units in all States : 10.750

• 1215 PU are sorted processing units
• 65 PU are associations and coops
• 4593 PU are certified by accredited certification bodies
• 3096 PU are OCS – No certification required
• Total Farmers certified: 15,000
• Fruits – Grains – Vegetable Oil – Sugar
• Agriculture – Extrativism – Agri-ecological production
• Limited animal Based (poultry-swine-cattle) products chain
Brazil - Organic Market figures & trends

• Estimated total turnover in 2014: 692 million EUR

• 50-60% for Export markets
• Forecast for 2015: 900 million EUR
• Sales channels: 2/3 conventional retailers and 1/3
specialized shops, online and farmers markets
• Imports (USA-EU) EUR$ 40 million
• Largest retailer: Casino Group – Organic &
conventional - Sales growth – 30-40% yearly
Organic Farmers
Market in Brazil
• 115 street farmer’s market
• Growth 20% year
• Direct sales farmers-consumer
• Certification PGS- Direct Register
• Turnover EUR$ 21,3 Million /year
 MAJOR RETAILERS

Turnover US$ 13,0 Billion US$ 24,7 Billion US$ 11,1 Billion

Stores 241 1999 544

Year 1975 1948 1998

Workforce 70.000 140.000 83.000

Organic ND US$ 60,5 Million ND

Growth ND 12,8% yearly ND

NATURAL/SPECIALIZED
FOOD STORES

Year 2014 2018

Turnover EUR $138,5 Million EUR$ 370,0 Million

Stores 300 650

• Founded in 1987 by Antunes Brothers sold in 2009 to AXXON Group

• 2014 AXXON Group sold to entrepreneur Carlos Wizard
• 1200 suppliers, 30.000 itens – food/supplements/natural/books/cd/cosmetics
• BODY / SOUL / MIND – SAFE PLANET
• Growth in 2013 - 14% For 2014-2018 20% year
• Average store sales EUR$45.000,00 ROI - 10%-14%
• International stores - Portugal
Today 57 companies
30 cooperatives – representing almost 12.000 families farming producers

Forcasting 2014-2016 100 companies

Trend of Brazilian Consumer
Characteristics and demographics
 Characteristics of Consumer Trends

% of Consumers trying to
% of Consumers trying to increase
Decrease
• Whole Grains 53%
• Sodium 53%
• Fiber content 53%
• Sugar content 50%
• Protein 50%
• Fat Trans 49%
• Calcium 36%
• Saturated fat 47%
• Omega3 21%
• Oils and fats 39%
• Potassim 19%
• Food preserves 37%
• Probiotic 18%
• Mono/poli Fats 26%
• Omega6 11%
• Cafeine 31%
• Omega9 19%
• Food Coloring 21%
• Oils and fats 8%
• Gluten 13%
 Brazil – Natural & Organic Market - 2014

 Health claim food sector revenue US$36,4 Billion

 Major claims for Health related foods are Fat free, sugar
free, no salt, Lactose free, Gluten Free
 Functional Foods market US$14,4 Billion
 Market growth 2014 - 37%
 Vegetarian consumers are at 8% of the market
 Organic consumers are leveled at 2,5% of the market
Thank You!

Ming C. Liu
mingliu@organicsbrazil.org