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Changes in Brazilian Households’ Dynamics Require Convenient and Practical Packaging Solutions

In Brazil, it is safe to say that families’ dynamics have been changing, with smaller households and more intense routines in the urban centres. Euromonitor International’s latest studies indicate that over the last 20 years, there has been an increase of 332% in single person households. In addition, women’s presence in the labour market increased by 112% in the same period, which has contributed to reducing their available time at home and demanding convenience and practicality in their daily lives. This scenario opens doors for many new product categories in the format of snacks and/or ready meals, which are expected to see volume CAGRs of 4% and 1%, respectively, over the forecast period, as indicated by the graph below.

Bar graph of Estimated CAGR from 2016 to 2021 in Ready meals, Breakfast cereals, Processed meat and seafood, soup, savory snacks, and packaged foods.

Source: Euromonitor International

Consumers are more open to trying new products that might address these new demands and, in this sense, packaging plays a fundamental role in brand differentiation. If we take as an example, yoghurts; traditionally, the category has been sold either in bigger packaging sizes, aiming to offer families an attractive cost-benefit ratio (eg 900g rigid plastic bottles), or in smaller packages, positioned to children, to be eaten with a spoon (40g pots). However, both of these formats are reasonably inconvenient for on-the-go consumption, such as when going to school or work. However, there are already some special innovations available, aiming to bring greater practicality to consumers. One example is Danone’s new product, Danoninho Para Levar, which introduces the same beloved yoghurt for children in a 70g pouch package with aluminium foil inside, which enables the product to remain unrefrigerated for up to five hours. This makes it ideal for children’s lunch bags. The pouch itself also has a fun design and features the brand mascot.

In the same way, the concept of “being practical” must be considered throughout the whole consumption experience; from storing the product at home to the point it is consumed. As an example, there is little value in offering consumers a tasty ready meal intended to be consumed on-the-go, which would require them to use a plate or cutlery. The Sodebo brand of pasta ready meals provides an interesting solution. Its main product, Pasta Box, not only comes in microwaveable packaging, but also includes a small fork to aid consumption. It is increasingly necessary that manufacturers think about packaging innovation that would bring consumers a fulfilling and easy experience.

As product manufacturers continue to struggle to retain their consumer base during such a challenging period of economic instability, creating new consumption occasions is a key element to maintaining a sustainable performance in the Brazilian market. That said, the offer of convenient and practical solutions through packaging innovation is surely an effective point of differentiation.

For more information on the opportunities for packaging innovation in Brazil during economic crisis, download our exclusive content in Portuguese through the link:

http://go.euromonitor.com/webinar-packaging-2017-tendencias-mercado-embalagens-brasil

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