Brazil Wine Market Report JBC EMP July 2011 - California Wine ...

5
Brazilian Wine Market Report
Brazil’s economy. Brazil has paid off all debt to the International Monetary Fund, which in
2005 totaled $15.5 million. The Real has gained 40 percent against the US dollar since
2009, amid huge economic growth and a rise in foreign investment.
Brazil experienced two quarters of recession beginning in the latter half of the economic
crisis and is considered one of the fastest economies to recover due to high investor and
consumer confidence. Heavy involvement in international trade has made Brazil a leading
economy in South America. Domestic consumption has been growing as wages and access
to credit have improved. The Brazilian labor force has seen an increase and in 2010 ranks
six in the world with 103.6 million working citizens.
“The 2010 growth rates demonstrate that the Brazilian economy is growing at a significant
and sustainable pace, which supports the country's plans for
long-term investment projects,” finance minister Guido
Population Indicators - Brazil
currently has the 5 th largest
population in the world with
203,429,773 citizens. The
population between 15-64 years is
66.8 percent, with a median age of
28.9. Currently, Brazil’s drinking
age is 18, which proves a sizable
market for alcohol. There are more
females than males: 98 percent
male/female ratio. Brazil’s
population is 74 percent Roman
Catholic, and 86 percent of the
population is located in urban
areas. 1 A study conducted by the
Brazilian Wine Institute (IBRAVIN)
shows demand for New World
wines is growing with the consumer
age group of 40 and above. Such
persons are interested in
purchasing higher quality wines
they read about or are presented in
the media.
Mantega said. “We expect GDP to grow around 4.5 to 5.0
percent in 2011, a rate that would be sustainable and
generate no inflationary pressures,” he added. Growth was
led by industry which saw an expansion of 10.1 percent,
agriculture growing 6.5 percent, and the services sector,
which saw growth of 5.4 percent. Brazil's GDP outstripped
Mexico's. Brazil’s Gross National Income (GNI) per capita in
2009 was $8,070 USD 1 .
Industries
Brazil’s largest industries are textiles, shoes, chemicals,
cement, lumber, iron ore, steel, aircraft, motor vehicles and
other machinery and equipment, in that order. The industrial
production growth rate was 11.5 percent for 2010. Brazil’s
main agricultural production includes: meat and by-products,
coffee, soybeans, wheat, rice, corn, sugarcane, cocoa and
citrus. Brazil is the 9 th largest oil producer in the world and the
7 th largest consumer. Oil exports reached over 570,100
bbl/day 2 in 2010.
A quick economic recovery can be attributed to Brazil’s welldeveloped
industry sectors. The breakdown of Brazil’s Gross
Domestic Product by composition sector is as follows: agriculture: 6.1 percent; industry:
26.4 percent; services: 67.5 percent. The Brazilian Food Processors’ Association (ABIA)
announced food and beverage industries of Brazil made up 85 percent and 15 percent of the
$173 billion (USD) total net revenue in 2009, respectively. ABIA estimated a 5.3 percent
volume increase in 2010 with 4.0 to 4.5 percent growth estimates per year over the next
five years. This growth estimate is above the 3.3 percent average for the past ten years.
The food processing industry consists of 38,500 companies including Nestle, Kraft, Unilever,
etc.
1 Doing Business 2011 in Brazil, The World Bank
2 https://www.cia.gov/library/publications/the-world-factbook/geos/br.html