Brazil: Food Processing Ingredients
Link to report:
In 2019, Brazilian food industry sales amounted to R$699 billion (US$177 billion), an increase of seven percent compared to the previous year. The outstanding result is due to several economic and social factors, including the relatively low interest rates and inflation being at the lowest levels in years. These factors increased disposable income and stimulated consumption. U.S. exports of intermediate goods to Brazil decreased by 10 percent in the same period. A severe depreciation of the Brazilian real against the U.S. Dollar in 2019 was a challenge for U.S. companies. For 2020, Brazil continues to present opportunities for U.S. exporters of intermediate products. High performance ingredients that add value to products present good market potential as trends such as health and wellness expand in the country. However, the COVID-19 pandemic is expected to cause severe economic impacts in Brazil, leading to higher risk aversion from importers who are waiting to see the adverse effects in the market.
