Brazil Food Ingredient Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Brazil Food Ingredient Market is segmented by Type (Starch and Sweetener, Flavors and Colorants, Acidulants and Emulsifiers, Preservatives, Enzymes, Edible Oil and Fats, and Other Types) and Application (Bakery Products, Beverages, Meat, Poultry, and Seafood, Dairy Products, Confectionery, and Other Applications). The report offers market size and forecasts in value (USD million) for the above segments.

Brazil Food Ingredient Industry Overview

brazil-food-ingredient-market_Market Summary
Study Period: 2018 - 2028
CAGR: 1.18 %

Major Players

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*Disclaimer: Major Players sorted in no particular order

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Brazil Food Ingredient Market Analysis

The Brazilian Food Ingredient Market is projected to register a CAGR of 1.18% during the forecast period (2022 - 2027).

Consumers' desire to know where their food originates grew as a result of the COVID-19 outbreak and food affordability became a major concern for purchase. The speculations about the demand for food ingredients affected companies like Kerry, which laid off about 8% of its workforce in Brazil due to the coronavirus outbreak. Although the country did not record major food shortages and food supply disruption, the increase in food prices caused certain segments of the population to face food insecurity. Brazil is one of the most severely hit countries by COVID-19. Hence, the country's food industry producers, processors, and distributors suffered, ultimately having a negative impact on the Brazilian food ingredients market.

The demand for synthetic food ingredients from Brazil and other South American countries is declining significantly as consumers are adopting plant-based food ingredients. Brazilian consumers, especially the millennials, are adopting a healthier and more active lifestyle, and thus, there is a significant shift in food preferences, from junk food to more natural and healthier food choices. Consumers are following the labels to get information regarding calories, total fat, cholesterol, sugar, proteins, preservatives, carbohydrate, gluten, and sodium.

As per the report published by USDA, the Brazilian Health Regulatory Agency (ANVISA) is revising the current nutritional labeling legislation. The objective is to make nutritional data on labels more visible and readable. Therefore, although consumers continue to be price-sensitive and more careful with food purchases, premium products and ingredients with competitive prices, more differentiation, and perceived added value still have a competitive advantage.

Brazil Food Ingredient Industry Segments

Food ingredients are added to a variety of food products to perform various functions, such as improving the overall safety and effectiveness, maintaining the nutritional value of food products, and improving the taste, texture, and appearance of the final food product. Brazil's food ingredients market is segmented by type and application. Based on type, the market has been segmented into starch and sweetener, flavors and colorants, acidulants and emulsifiers, preservatives, enzymes, edible oil and fats, and other types. Based on application, the Brazilian food ingredient market has been segmented into bakery products, beverages, meat, poultry, and seafood, dairy products, confectionery, and other applications. The report offers market size and forecasts in value (USD million) for the above segments.

Type
Starch and Sweeteners
Flavors and Colorants
Acidulants and Emulsifiers
Preservatives
Enzymes
Edible Oils and Fats
Other Types
By Application
Bakery Products
Beverages
Meat. Poultry, and Seafood
Dairy Products
Confectionery
Sweet and Savory Snacks

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Brazil Food Ingredient Market Trends

This section covers the major market trends shaping the Brazil Food Ingredient Market according to our research experts:

Growing Demand for Natural Food Colorants

With an increasing preference for clean label products, the demand for natural colors is expected to increase exponentially during the forecast period. Although natural colors are safer, they have a few fictional issues, like consistency. Production of such colors involves high production costs as well as a lack of raw material availability. Natural colorants have varied applications in functional foods. Food colors find application in many processed foods, including candies, snack foods, margarine, cheese, soft drinks, jams/jellies, gelatins, pudding, and pie fillings. The main constraint of the industry is the high cost of production, chemical instability due to fluctuating temperature/pH conditions, and increased regulations. Paprika is a natural food color that is ground and is made from chili peppers (capsicum). It is used as a garnish in many recipes to create vibrant colors. WILD Flavors and Specialty Ingredients offers a line of natural food and beverage colors, Colors from Nature. These colors provide a natural, heat, and light-stable product with appealing color hues.

Brazil Food Ingredients Market Trend 1

Health and Wellness Trend to Uplift Ingredients Value Sales

In Brazil, rising rates of obesity, diabetes, and heart disease are prompting customers to seek out more natural, healthful, and organic products. According to the Brazilian Institute of Geography and Statistics, about 1 in every 4 Brazilians is obese. Moreover, the shifting demographics of the country, which is aging rapidly with falling birth rates and increasing life expectancy, is pushing consumers to be more proactive toward their health. With the rise in health consciousness, consumers are pivoting their interest from carbs to protein-based diets. A recent survey commissioned by Arla Foods Ingredients found that nearly two-thirds of South Americans would be willing to pay extra for food or beverage products that are higher in protein, presenting a clear market opportunity for ingredients suppliers. The survey projected Brazil as the second most prominent country in the region, with about 60% of consumers stating to have the willingness to spend more on health-oriented food products. Hence, the shift propelled by consumers, food manufacturers, and governing bodies toward healthier ingredients is anticipated to boost the value sales of the market, considering the higher relative cost of value-added ingredients than conventional.

Brazil Food Ingredients Market Trend 2

Brazil Food Ingredient Market Competitor Analysis

The market studied is fragmented and includes regional and global competitors. The market is dominated by players like Cargill Inc., Koninklijke DSM NV, Ingredion Inc., Olam International, Kerry Group, AAK AB, Tate & Lyle PLC, and International Flavors & Fragrances. There are various small and medium local players holding a significant share in the market. The leading players in the market studied enjoy a dominant presence across the country. Cargill, one of the global ingredient suppliers, joined hands with major domestic players for sugar production, thus increasing the market share in Brazil. Many companies from Europe and the United States have strong ties with local distributors and traders, which help them sell products to local sellers.

Brazil Food Ingredient Market Top Players

  1. AAK AB

  2. Kerry Group

  3. KONINKLIJKE DSM NV

  4. Cargill Inc.

  5. Olam International

*Disclaimer: Major Players sorted in no particular order

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Brazil Food Ingredient Market Recent Developments

In 2021, Ingredion partnered with Amyris Inc., signing a deal of approximately USD 100 million. This deal gives Ingredion Inc. exclusive license to sell and market Amyris’s zero-calorie, nature-based, fermented Reb M sweetener. The agreement also includes an Ingredion minority ownership stake in the Amyris Brazilian manufacturing facility that is currently under construction.

Brazil Food Ingredient Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products and Services

      5. 4.3.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Starch and Sweeteners

      2. 5.1.2 Flavors and Colorants

      3. 5.1.3 Acidulants and Emulsifiers

      4. 5.1.4 Preservatives

      5. 5.1.5 Enzymes

      6. 5.1.6 Edible Oils and Fats

      7. 5.1.7 Other Types

    2. 5.2 By Application

      1. 5.2.1 Bakery Products

      2. 5.2.2 Beverages

      3. 5.2.3 Meat. Poultry, and Seafood

      4. 5.2.4 Dairy Products

      5. 5.2.5 Confectionery

      6. 5.2.6 Sweet and Savory Snacks

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Olam International

      2. 6.3.2 Cargill Incorporated

      3. 6.3.3 Koninklijke DSM NV

      4. 6.3.4 AAK AB

      5. 6.3.5 Sensient Technologies

      6. 6.3.6 Ingredion Incorporated

      7. 6.3.7 Archer Daniels Midland Company

      8. 6.3.8 Kerry Inc.

      9. 6.3.9 Tate & Lyle PLC

      10. 6.3.10 Associated British Foods PLC

      11. 6.3.11 Givaudan SA

      12. 6.3.12 Bunge Limited

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON MARKET

**Subject to Availability
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Brazil Food Ingredient Market Research FAQs

The Brazil Food Ingredient Market is studied from 2018 - 2028.

The Brazil Food Ingredient Market is growing at a CAGR of 1.18% over the next 5 years.

AAK AB, Kerry Group, KONINKLIJKE DSM NV, Cargill Inc., Olam International are the major companies operating in Brazil Food Ingredient Market.

Brazil Food Ingredient Industry Reports

In-depth industry statistics and market share insights of the Brazil Food Ingredient sector for 2020, 2021, and 2022. The Brazil Food Ingredient research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Brazil Food Ingredient report PDF.

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