Economic climate in Brazil

September 5, 2022
3 min read

There are many macroeconomic factors affecting Brazilians’ consumption behavior, whether local, such as high inflation, the water crisis, unemployment, and food insecurity, or global, such as COVID-19 and the conflict in Ukraine.

Each category is impacted in different ways, and some consumer profiles also feel the influence of these factors more. But there are solutions that brands can further explore, beyond talking about low prices and promotions.

For example, according to Mintel research on attitudes toward ethics and sustainability, two-thirds of Brazilians say they actively avoid food waste. In addition, nearly two in five consider a company that uses frequently discarded resources to be sustainable. Thus, companies can adopt waste reduction actions in the industry, gaining the attention of consumers by establishing parallels between their habits at home and the actions of brands and companies in the production process.

The water crisis in Brazil resulted in an increase in Brazilian spending and, among the C class, a third reported taking shorter showers to save money. Considering that 91% of these consumers say they use bar soap every day, soap brands could innovate by bringing formulas with quick-rinse technology as a way to help these consumers save water consistently.

The rise in the price of oil, resulting from the conflict in Ukraine, will lead to an increase in the price of its derivatives used to manufacture plastic packaging, which could negatively impact manufacturers of home care products. These brands may end up passing the cost on to the consumer. According to Mintel research on household care, a quarter of consumers cite ‘sustainable (eg eco-friendly, carbon-neutral packaging)’ as an important attribute when purchasing household cleaning products. Thus, home product manufacturers can look for more sustainable material alternatives – even if the cost is higher as it is at least justified by claims related to sustainability.

Nearly half of pet owners bathe their animals at least twice a month and over a quarter say they like products with fragrances that last longer. However, many consumers also express concern about possible harm from a high frequency of baths and the use of products with strong fragrances. Therefore, bath product brands can invest in clean label products with more natural compositions that provide greater safety for animal tutors, as well as in the use of natural essential oils that provide longer-lasting and safer fragrances.

If you’re a Mintel client interested in learning more about Brazilian consumers, check out Naira’s full piece here and speak to your Account Manager. If you’re not a Mintel client and are interested in learning more, please get in touch and check out Toby Clark’s piece, ‘Ukraine and inflation: Consumers weigh in’.

Naira Sato
Naira Sato

Naira is Head of Mintel Reports LatAm and leads an expert team of cross-category analysts. Naira has over 10 years of experience in consumer research, working for CPG, consumer technology and B2B brands.

More from Mintel
  • Brazil Market Research
    Mintel’s market research reports let you think global but act local with Brazil-specific titles across all key categories and industries....
    Buy a report
  • Blog Mintel: As últimas novidades do mercado e tendências
    Leia este blog em Português!...
    Clique aqui
  • Mintel Leap
    Mintel Leap is a revolutionary new AI-powered platform that will transform your research process....
    Book a demo
Subscribe to Mintel Spotlight
Related articles

Download the Latest Market Intelligence