The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.Learn More
Brazil’s economic recession and socio-political turmoil is the story of a major emerging market in crisis, with implications for many consumer goods companies. In the face of rising unemployment and falling wages, compounded with rising inflation and currency depreciation, consumer expenditure per household fell by 9.3% between 2014 (the year Brazil’s economic recession began in its earnest) and 2016. As well as spending less, Brazilian households are also changing their consumption habits with a shift away from the culture of ‘consumerism’ towards a greater focus on value for money. Insights into Brazil’s consumer spending in times of economic recession can help businesses adjust and adapt as well as identifying opportunities in the country.
Source: Euromonitor International’s Competitor Analytics
Brasil Kirin was sold to Heineiken in early 2017 as Kirin’s Japanese owner shifts their strategic interest to Southeast Asia, but the company’s expansion hitherto was a case study of a business understanding the changing consumption pattern and successfully spotting opportunities amid a difficult economic climate.
Brazil’s real consumer expenditure is forecast to grow by 1.9% year-on-year in 2017 and 2.2% in 2018, rebounding from an annual real contraction of 3.7% in 2016. But overall, the Brazilian consumer market will remain challenging over the medium to long term, as annual household disposable income is not expected to overtake it 2014 level before 2025. In this context, companies will need a granular approach to pinpoint pockets of growth, because opportunities in Brazil will be uneven between different consumer spending categories, age cohorts and income bands, as well as across cities and regions.