Trends
Dynamic market
Trends
Dynamic market
Eye-catching 1
According to IBGE, 25% of Brazilian citizen income is intended to formal meals. The number goes up to 36% for snacks
Eye-catching 2
By 2025, food service will exceed retail as business volume
Food service is a market comprising all production chain, food distribution, consumption materials, equipment, packing and services, directed to establishments that produce meals to be served at home or not. Currently, the sector also incorporates delivery services and rotisserie.
In accordance with last IBGE survey, 25% of Brazilian citizen income is intended to formal meals, lunch and supper, 36% for snacks and sandwiches (fast food) and 23% beverages. Some locations, such as Rio de Janeiro, Brasilia and the state of São Paulo are above average. In Rio, 33% of income is intended to meals outside the house, in Brasilia the number reaches 37%. Natives from São Paulo spend 26% of their income. In the North American market, most mature in this sector, population spends 50% of income with meals outside the house. In England, 40%, and in Netherlands, 30%.
The business tends to grow. “Until 2025, food service will exceed retail as business volume”, states Jean Louis from ABIA.
This is not mere prophecy, but a forecast based on numbers. From 1997 to 2007, retail grew, annually, around 7%, while food service reached 13% per year. Having the advantage of six percentage points, in few years it will be a mature market such as the one in the United States, where retail was left behind.
The reasons for this fast-paced growth are attributed to the changes in consumer behavior resulting from the new reality that economic stability brought to Brazilian workers. Women massive insertion to labor market changed Brazilian families behavior. The maternal figure preparing meals for husband and children is each time more behind. Feminine work force already holds 43% of job posts.
Four out of each ten people, who are part of the economically active population, are women. Women average schooling also exceeds men’s, in recent years, according to Economically Active Population (PEA) survey carried out by IBGE. That is: they also are more dedicated to the studies, thus, there is little time for domestic tasks.
Another aspect to consider is class C consumption strength, which gets stronger each year. In 2007, company Ponte Conhecimento e Conexões analyzed the behavior of 60 youngster, aged 18 to 35 years old, who live in São Paulo periphery. Among several findings, the research “Class C Youth from São Paulo - Leisure and Food”, coordinated by advertising executive, André Toretta, revealed that youngsters in this social class reject the chow pan as a meal option. “Upon income increase, the possibility to eat out became reality.
This public lives a dazzling period by, finally, being included to consumer market”, explains Toretta.
The researcher observed some particularities. People usually have breakfast inside the mass transportation mean. Due to large distances to cover between home and work, time, early in the morning, is quite precious. At lunch time, there is preference for dog-hot, Greek barbecue and salty pastries. Supper is the only meal people have at home.
Based on such new paradigms, the market tends to greater public personalization, as products are produced in accordance with market needs, portioned, adequate packing and lines of production. Investment in products formats and varieties will be differentials, with more attractive income.
A number which indicates food service growth is marked out by purchases that operators (restaurants, fast food, bars) carried out in the food and beverages industry.
In 2007 purchases amounted to R$ 48 billion approximately; and, it is expected 13% growth, that is, around R$ 54 billion for 2008. Since 1995, purchases have grown 198%. The number of establishments currently operating in this kind of market is around 1.3 million units.
Numbers are thrilling, but the truth is that the majority of companies have a reduced line of products directed to food service. The challenge is to perceive which are the trends. This is very important for food industry, beverages and equipment, which should incorporate the food service market to their strategic planning.
Some international movements have already began in Brazil, such as, for example, the increasing supermarket share in food service market, as store rotisseries and restaurants; the turn of convenience stores into fast food restaurants; food outsourcing in economic hotels; school meals growth, vending machines; and sandwich segment strengthening.
