The local product market - Brazil

1.1 Definition and scope of study

Local products refer to food products considered an integral part of Brazilian gastronomy, with a traditional and local component.

The market for local products is characterized by its diversity of products (dairy products, meat, fruit and vegetables, etc.) and its large number of players with a high competitive intensity (private labels, agri-food giants, local producers, innovative SMEs, etc.). In the local product market, the performance of companies depends heavily on the commitment of regional consumers to these products, while attracting customers across borders.

A Unilever study concluded that 21% of people prefer to support brands that adopt sustainable practices in the production and dissemination of products and services. With Brazilians it is no different, they listed their main reasons for choosing local producers over big businesses :

• Freshness and taste, thanks to smaller distances covered by the products
• Reduction of waste and thus a lesser impact on the environment
• The fact that small and medium companies are responsible for 75% of formal jobs in the country
• Encouraging the economy of the city and region itself

Furthermore, small businesses already account for 27% of national GDP. Even so, the high prices and the difficulty of meeting these producers in the big cities have proved to be the biggest obstacle to the growth of this market. Those who are able to overcome these barriers are more likely to succeed in the short and medium term.