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Supermarkets and Hypermarkets - Brazil - December 2016

Published By :

Mintel

Published Date : Dec 2016

Category :

Lifestyle

No. of Pages : N/A

The grocery retail world is quite competitive and operators that can offer new products and services will certainly stand out and get ahead of the competition.

Due to the economic situation, grocery retailers need to learn how to deal with a much more selective consumer who is concerned with low prices and cheap offers, is looking for alternative brands in order to save money, and plans ahead before going shopping.

Table of Contents

OVERVIEW
What you need to know
Products covered in this Report
Excluded
Terms

EXECUTIVE SUMMARY
The market
Figure 1: Forecast of Brazil retail sales of grocery retailing, by value, 2011-21
Market drivers
The economy is still unstable but consumer confidence is up
Changes in meat purchase policy
Companies and brands
Figure 2: Leading retailers in the Brazilian grocery retailing sector, by sales revenue, 2014-15
Figure 3: Share of private label in NPD of food and drink products, by top five companies, 2011-16*
The consumer
Bakery is Brazil’s favorite type of grocery retailer
Figure 4: Frequency of shopping at different retailers, June 2016
Private labels are purchased by the majority
Figure 5: Private labels, June 2016
Consistently low prices and own bakeries are good to bring in shoppers
Figure 6: Attitudes to grocery retailers, June 2016
Brazilians are being cautious when they go grocery shopping
Figure 7: Shopping behaviors, June 2016
What we think

ISSUES AND INSIGHTS
Creating more attractive loyalty programs
The facts
The implications

THE MARKET – WHAT YOU NEED TO KNOW
Retail sales value is forecast to reach R$805.6 billion by 2021
Brazil has an aging population and half are overweight
Changes in legislation to offer extra information to consumers

MARKET SIZE AND FORECAST
Market performance
Figure 8: Retail sales of grocery retailing in Brazil, by value, in billion, 2011-15
Figure 9: Number of grocery retailer stores, 2011-15
Segment performance
Figure 10: Retail value sales of grocery retailing, in R$ billion, by segment, 2014-15
Figure 11: Number of outlets in the Brazilian grocery retailing sector, in (000), by segment, 2014-15
Forecast for the grocery retailing market
Figure 12: Forecast of Brazil retail sales of grocery retailing, by value, 2011-21
Forecast methodology

MARKET DRIVERS
Greenpeace forces change in meat policy
Aging population can help sales over the long term
6.2% of Brazilian adults have diabetes and 21.4% have hypertension
Retailers can take advantage of more healthful lifestyles
The Brazilian economy is more stable
Inflation is showing signs of slowing down
Figure 13: IPCA monthly change, by percentage, January 2014-October 2016
Cut in the interest rate
Unemployment rate remains stable
Consumer confidence is rising

REGULATORY AND LEGISLATIVE CHANGES
Changes in labels to include allergens and lactose content

COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Carrefour is the market leader with 8.7% share by value
Innovation remains stable in private label

MARKET SHARE
Carrefour is the leading company by share value
Grupo Pão de Açúcar is losing space in the market
A very fragmented market
Dia becomes the market leader in number of stores
Figure 14: Leading retailers in the Brazilian grocery retailing sector, by sales revenue, 2014-15
Figure 15: Leading retailers in the Brazilian grocery retailing sector, by number of outlets, 2014-15

COMPETITIVE STRATEGIES
Consolidation
Hortifruti buys Natural da Terra and keeps expanding
Walmart is restructuring its stores
GPA wants to partner with independent small grocery stores
Digital activity
Pão de Açúcar expands its online offering
Carrefour is back with online grocery sales

LAUNCH ACTIVITY AND INNOVATION
New product launches in private label remain stable but low
Figure 16: NPD in branded and private label, Brazil, 2011-16
Only 11% and 6% of new private label products belong to food and drink categories
Figure 17: NPD in branded and private label, by super category, Brazil, 2016*
Chocolate confectionery is the most innovative category in food
Figure 18: Food innovation by private labels, Brazil, 2016
Figure 19: Share of private label in new product launches of food products, by category, 2016*
Hot beverages category tops the list in the drink category
Figure 20: Food innovation by private labels, Brazil, 2016
Figure 21: Share of private label in new product launches of food products, by category, 2016*
More companies are launching private labels products
Figure 22: Food and drink innovation by Dia, Brazil, 2016
Figure 23: Food and drink innovation by Groupe Casino, Brazil, 2016
Figure 24: Food and drink innovation by Walmart, Brazil, 2016
Figure 25: Food and drink innovation by Carrefour, Brazil, 2016
Figure 26: Share of private label in NPD of food and drink products, by top five companies, 2011-16*

THE CONSUMER – WHAT YOU NEED TO KNOW
94% of Brazilians buy groceries at bakeries
Private labels have higher usage among older consumers
Everyday low pricing appeals
Consumers are planning before going shopping

FREQUENCY OF SHOPPING AT DIFFERENT RETAILERS
Bakery is the most used retailer
Figure 27: Shopping at bakeries and independent small grocery stores, once a day or more, June 2016
Supermarkets/hypermarkets present high usage
Figure 28: Shopping at supermarkets and hypermarkets, any frequency, June 2016
Wholesalers are used by 71%
Figure 29: Shopping at wholesalers, any frequency, June 2016
Online stores are still used by a minority
Subscription services can boost online sales
Personalized subscription service
Figure 30: Shopping at online stores, any frequency, June 2016
Figure 31: Frequency of shopping at different retailers, any frequency, June 2016
Figure 32: Frequency of shopping at different retailers, June 2016

PRIVATE LABELS
Private labels are bought by 62% of shoppers
Despite lower prices, only 41% of DEs purchase private labels
Figure 33: Consumers who have bought private label products at supermarkets/hypermarkets in the past 12 months, by socioeconomic group, June 2016
South-East presents the highest usage
Figure 34: Consumers who have bought private label products at supermarkets/hypermarkets in the past 12 months, by city, June 2016
Getting consumers familiar with private labels
Using samples is a way in
Demystifying any concerns about production process
Figure 35: Private labels, June 2016
Supporting small producers
Figure 36: Private labels, June 2016

ATTITUDES TO GROCERY RETAILERS
Low price is key to winning over the consumer
Using freshness to compete with other formats
Figure 37: Attitudes to grocery retailers, by gender and age, June 2016
Grocery retailers can take the lead in recycling
And the same applies to influencing healthful lifestyles
More retailers are investing in self-checkouts
Figure 38: Attitudes to grocery retailers, June 2016

SHOPPING BEHAVIORS
Consumers are planning before going shopping
Sales and bargains to attract consumers
Figure 39: Shopping behaviors, by gender and age, June 2016
Environmentally friendly products are viewed favorably
Going package-free
Online shopping should be simplified
Figure 40: Shopping behaviors, June 2016
Figure 41: Shopping behaviors, June 2016

APPENDIX – MARKET SIZE AND FORECAST, ABBREVIATIONS, AND SUPPORTING INFORMATION
Market Size and Forecast
Figure 42: Forecast for grocery retailing, by value, Brazil, 2011-21
Figure 43: Value sales for grocery retailing, Brazil, 2011-21
Fan chart forecast
Abbreviations

List of Table

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