The jam market - Brazil

1.1 Definition and scope of study

Jam, made with sugar, water and fruit, is a simple product spread all over the world witch has ancient origins. Depending on the culture and geography of a population, jelly will accompany different meals or times of day.

Jam has traditionally been associated with early morning for some time, but today with the progressive increase of substitute products for breakfast, jelly is slowly losing its audience. In this very mature market, historical players are striving to maintain their market-shares based on products that are characterized by a low and slow rate of innovation.

However, two recent trends have emerged for players to differentiate themselves :

• in terms of product : we are observing a decrease in the amount of sugar and the appearance of organic products
• in terms of packaging: players are committed to seducing consumers with consistent quality and innovative packaging.

Despite the fact that jam is not commonly consumed by Brazilians, this sector has been growing in recent years. The fruit and vegetable segment, in which jams are classified, was ranked as the 7th most profitable. According to the Brazilian Association of the Food Industry (ABIA), the food sector in Brazil grew 2.8% in revenue in 2018, representing 9.6% of GDP.

The Brazilian jam market is composed of approximately 600 companies, of which over 83% are micro or small. Because it is a very fragmented market, the five largest companies represent only 15% of market share. The high competition in the jams and jellies market is attributed to low entry barriers for new entrepreneurs.

Despite the variety of regional raw materials found in Brazil, the most marketed jams are still restricted to the most common fruits such as pineapple, pumpkin, fig and peach. Since Brazil is a country rich in different types of fruits, this implies that the market for jams and jellies has a great potential for growth, especially considering the need to value and preserve Brazilian biodiversity and sustainable use of native species. Actors who know how to exploit this potential will certainly have more chances to raise their market share.