As part of our work in planning and executing media campaigns for key clients all over Brazil, we focus on the internal markets in the country that are rapidly expanding. Obviously, understanding where consumers are directing their spending is helpful in understanding where the advertising investments will be coming from in the near future. With that goal in mind, here are the hot growth markets in Brazil for 2014:
In 2014 the credit card market in Brazil will grow by 17% to reach R$ 1 trillion (US$427 billion). This projected growth is based on strong previous growth: in 2013 the Brazilian credit card market grew by nearly 18% and posted R$853 billion (US$364 billion) in transactions. Of this, R$ 553 billion (US$236 billion) corresponded to credit card transactions and the rest to debit card transactions.
Source: Associação Brasileira de Bancos
Over recent years, the dietary supplements markets in Brazil has had an average growth of 15%. While no projections are yet available for 2014, in 2013 the Brazilian dietary supplement market posted revenues of R$ 700 million (US$299 million). In comparison, in 2008 the Brazilian dietary supplement industry produced R$ 150 million (US$64 million) in revenues.
Source: Associação Brasileira dos Fabricantes de Suplementos
In 2013, Brazil’s agricultural sector broke the record for farm machine sales with more than 100,000 machines sold. Domestically, more than 83,000 farm machines were sold in Brazil in 2013, eclipsing the previous record of 80,000, set back in 1976. Overall, these figures represented 20% growth compared to 2012. While 2014 growth is only projected to be 1.1%, that’s still significant for this particular industry.
Source: Associação Nacional dos Fabricantes de Veículos Automotores
Brazil’s fashion market has quadrupled in revenues in the past 10 years. In fact, according to Euromonitor, in 2013 the fashion industry in Brazil brought in US$140 billion in revenues.
Source: Sindicato de Lojistas do Município do Rio de Janeiro
The amount of gyms in Brazil has exploded, going from 7,000 in 2006 to more than 22,000 by 2012. Only the United States has more gyms in operation than Brazil. The market of gym customers in Brazil amounts to more than 100 million, with 40 million of them belonging to Classe C, the Brazilian middle class.
Source: Associação Brasileira de Academias
Brazil’s insurance market will grow by nearly 16% in 2014. Culturally, Brazilians tend to purchase auto insurance but are less likely to buy life or home insurance.
Source: Confederação Nacional das Seguradoras
In 2014 it’s estimated that the luxury market in Brazil will grow by 16% to 18%. In 2013 the Brazilian luxury market grew by 10-12%, after 16% growth in 2012. A recent development with the luxury market in Brazil is that it’s growing beyond Sao Paulo to include Curitiba and Rio.
Sources: Bain & Company, MCF
The Brazilian mineral water industry expects a sales increase of 35% in 2014. The popularity of flavored water is one of the driving factors in this growth. There are over 400 mineral water brands in Brazil and Edson Queiroz—owner of Indaiá and Minalba—has the highest market share at nearly 13%.
Source: Associação Brasileira da Indústria de Água Mineral
At the end of 2013 more than 18 million households in Brazil had subscriptions to pay TV, compared to just 3 million in 2000. In 2013 the amount of households with pay TV in Brazil grew by 11%, compared to 27% growth in 2012 and 30% growth in 2011. Between 2018 and 2020, pay TV will reach 70% of Brazilian households. And by the end of 2014, 60% of the pay TV subscribers in Brazil will be from Classe C.
Sources: Anatel, IBGE
Brazil’s wine market grew by nearly 10% in 2013, driven by increases in sales of fine wines, table wines and sparkling wines. In 2014 it’s projected that the Brazilian wine market will grow by another 13%. Consumption is clearly behind this growth, with average per capita consumption of wine in Brazil expected to increase from 2 liters per person to 2.5 liters by 2016.
Source: Instituto Brasileiro do Vinho
To find out more about how we can help you reach Brazilians via any form of media, please contact us.