The spreads market - Brazil

1.1 Market presentation

The spreads market is a growing market in Brazil. The market study below focuses on the consumption of chocolate-based spreads, with the jam and marmalade segment covered in another specific study. Usually eaten for breakfast or as a snack, the intense flavor of these spreads can be enjoyed with other products: breads, brioches, pancakes, waffles, etc.

In a near-monopolistic market dominated by Nutella, the leading company in the sector has had to face a series of headwinds that have led to the emergence of competitors. The underlying trend of consumers opting for healthy, local products with less environmental impact is having a major impact on the group, which is facing a number of controversies.

The Brazilian spreads market covers a variety of products, including traditional chocolate and hazelnut spreads, as well as healthier and more innovative options such as peanut and nut spreads. Before the COVID-19 pandemic, this market was on the rise, generating billions of reais every year. Enjoyed by people of all ages, spreads are commonly eaten for breakfast, snacks and also used as ingredients in dessert recipes.

The COVID-19 pandemic has affected the spreads market in Brazil, generating an increase in demand due to social distancing measures and the increase in meals at home. This, along with a significant growth in online sales, demonstrates consumers' search for safe purchasing options. In addition, there is a growing trend for healthier and more natural spreads, reflecting Brazilian consumers' concern about food quality, opting for products with natural ingredients, less sugar and no artificial preservatives.

The erosion of the leader's sales has led to the emergence of new brands with strong positioning. These include the Italian brand Pan di Stelle (with no palm oil, flavorings or synthetic colorings) and Patamilka, owned by the American giant Mondelez.