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Brazil’s billion-dollar meat industry faces price and health pressures

Post a commentBy Oscar Rousseau , 13-Dec-2016
Last updated on 13-Dec-2016 at 12:42 GMT2016-12-13T12:42:56Z

The meat industry in Brazil could become the largest protein exporter in ten years
The meat industry in Brazil could become the largest protein exporter in ten years

Brazil’s giant meat industry could become the world’s top protein exporter next decade, but analysts warn it needs to understand consumer demands are changing. 

The country’s economy is expected to shrink by 3.5% this year and the contraction is changing the way consumers shop. Spending changes in the midst of a recession – and this shift has occurred along Brazilian meat aisles today, FMCG insight firm Canadean has claimed.

The London-based insight company’s report suggests Brazil’s frugal shoppers are increasingly aware of which meat products genuinely represent value for money. Meat packaged in larger pack sizes or in family portions, alongside buy-one-get-on-free offers and in-store promotions are appealing to consumers, Canadean said.

“Brazilian consumers are very discerning about the quality of meat products, so offering good quality or innovative cuts of meat at reasonable prices will be fundamental for manufacturers hoping to remain appealing,” said Javier Gonzalez, an analyst at Canadean.

“Indeed, such a strategy is particularly astute now due to brand loyalty being lower than ever,” he added.

With an uncertain economic future and consumer loyalty low, the key areas where Canadean research suggested Brazilian meat manufacturers could make inroads was in price and health.

As in many parts of the world, the nutritional value of meat products has become important to consumers. Low-fat, low-carbohydrate and – crucially – high-protein meals are getting increasingly popular.

“Brazil’s ageing population will make it vital that manufacturers introduce healthier meat products that match mature consumers’ nutritional needs,” added Gonzalez.

Fresh meat in Brazil is the most popular type of product, accounting for 59% of the market, with pre-cooked or ready-to-eat products less popular.

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