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Confectionery in Brazil

Kraft leads the Brazil impulse and indulgence products market in 2012 with a 10% market share

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2014-03-28 14:14:04 - Confectionery in Brazil - a new market research report on

Impulse and indulgence products was marked by the trend towards specific benefits as well as healthier options during 2012. Many manufacturers of impulse and indulgence products began to offer products with reduced fat, sodium and sugar and some that offer other health benefits or premium positioning in line with recent trends in packaged food both in Brazil and worldwide.The leading company in impulse and indulgence products was Kraft Foods within predicted value share of 10% in 2012. The company´s importance in the area was primarily due to its product portfolio in confectionery and biscuits. It has many brands with a high level of recognition amongst consumers, such as Lacta, Trakinas and Club Social.Healthier options are expected to continue to drive



growth within impulse and indulgence products over the forecast period. Manufacturers will be challenged to make products that offer lower salt, fat and sugar as well as offer health benefits in order to deliver to actual consumer demand.Meal solutions continued to benefit from increasing disposable incomes, in particular lower-income brackets, which have gained access to products that offer convenience at a time when unemployment rates were at the lowest level in Brazil´s history, meaning that a growing number of people have less time to prepare meals at home.Brf Brasil Foods remained the leading player in meal solution with a predicted 17% value share due to its leading position in ready meals and frozen processed food. The company, however, experienced significant decline after CADE (Administrative Council of Economic Defense) approved the merger between Sadia and Perdigão with restrictions, meaning that Brf Brasil Foods would have to sell some of its brands and discontinue Perdigão and Batavo within ready meals and some categories within frozen processed food between by the end of the forecast period. As a result, the company sold Rezende, Wilson, Texas, Tekitos, Patitas, Fiesta, Escolha Saudável Perdigão, Light Ellegance, Fresk, Confiança, Doriana and Delicata brands to Marfrig, including facilities and distribution centres.Meal solutions is expected to continue recording a great performance over the forecast period driven by growing demand for convenient products, in particular in lower-income brackets. The stiff competition among players in frozen processed food and ready meals is likely to be positive for consumers as unit prices might suffer small price adjustments in the near future.Nutrition/staples is expected to increase by a CAGR of 5% in constant value terms over the forecast period. Growing disposable incomes will continue to play an important role in further growth of baby food, bread, breakfast cereals and dairy products in the near future as penetration is still low in these socio-economic strata.

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