BRAZILIAN ORGANIC MARKET
TRENDS AND NEWS
BIOFACH 2015
MING LIU – IPD/ORGANICS BRASIL
Marketing to and from Brazil – Regulatory Issues
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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
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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
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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
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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
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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
Turnover
Stores
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2014
EUR $138,5 Million
300
2018
EUR$ 370,0 Million
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 increase
• Whole Grains
53%
• Fiber content
53%
• Protein
50%
• Calcium
36%
• Omega3
21%
• Potassim
19%
• Probiotic
18%
• Omega6
11%
• Omega9
19%
• Oils and fats
8%
% of Consumers trying to
Decrease
• Sodium
53%
• Sugar content
50%
• Fat Trans
49%
• Saturated fat
47%
• Oils and fats
39%
• Food preserves
37%
• Mono/poli Fats
26%
• Cafeine
31%
• Food Coloring
21%
• 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
[email protected]