Boston, MA -- (SBWire) -- 11/27/2015 --The impact of the weakening macroeconomic environment and low consumer confidence is beginning to be felt by consumer goods businesses in the food and drink sector. Premium category products in particular are seeing a slowdown in sales, as more consumers opt for discount brands . This is likely to be the case over 2016 as well , as we see little scope for a rebound. The positive for the market will be an influx of high-spending tourists in August-September 2016 for the Rio Olympic Games.
A less favourable external environment (in light of an ongoing slowdown in Chinese growth), a poor domestic business environment and a lack of export competitiveness all pose significant headwinds to growth. Although we previously argued that Brazil was in the early stages of an economic policy shift with the appointment of an investor-friendly Finance Minister Joaquim Levy, we expect investor pessimism to rise, on the back of the economic recession, high inflation, currency weaknesses and the potential for delay in fiscal reforms. We also believe that a moderation in input prices (grains) could help margins for these companies to recover in coming months.
Get More Details on this Report and a Full Table of Contents at Brazil Food & Drink Report Q1 2016
Headline Industry Data (Local Currency)
2015 per capita food consumption = +7.4% y-o-y; forecast compound annual growth rate (CAGR) to 2019 = +7.1%.
2015 alcoholic drink sales = +7.4% y-o-y; forecast CAGR to 2019 = +7.2%.
2015 soft drink sales = +7.6% y-o-y; forecast CAGR to 2019= +7.8%.
2015 mass grocery retail sales = +8.5% y-o-y; forecast CAGR to 2019 = +5.8%.
The Brazil Food & Drink Report features BMI Research's market assessment and independent forecasts for food and drink expenditure, consumption, sales, and imports/exports and forecasts for the mass grocery retail sector. The report also includes analyses of major regulatory developments, the background macroeconomic outlook and competitive landscape comparing national and multinational companies by leading products and services, sales, investments, partners and expansion strategies.
BMI's Brazil Food & Drink Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the food and drink industry and the mass grocery retail market in Brazil.
Key Benefits
-Benchmark BMI's independent food and drink industry forecasts for Brazil to test other views - a key input for successful budgeting and strategic business planning in the Brazilian food and drink market.
-Target business opportunities and risks in Brazil through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
-Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity) and Competitive Landscape Tables.
Coverage
BMI Industry View
Summary of BMI?s key industry forecasts and views, covering food and drink manufacturing and consumption and the mass grocery retail market.
Industry SWOT Analysis
Analysis of the major strengths, weaknesses, opportunities and threats within the food, drink and mass grocery retail sectors and within the broader political, economic and business environment.
BMI?s Food and Drink Risk Reward Index
BMI?s Risk Reward Index provides investors (food and drink manufacturers and mass grocery retailers) looking for opportunities in the region with a clear country-comparative assessment of a market?s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic points. These provide indices of highest to lowest appeal to investors, with each position explained.
Food Forecasts
BMI?s food chapter is divided into sections such as meat, fish, confectionary, dairy and canned foods, and provides insight into each market?s food industry, centred on a forecast to end-2019 for the sector. The chapter includes the following elements:
-Industry Forecast Scenario: Historical data series and a forecast to end-2019 for growth of key indicators within a market?s food industry. Indicators include food consumption, food consumption as % of GDP, canned food sales, confectionery sales and food and drink imports and exports, among others.
-Industry Developments: A summary of corporate developments, including news on M&As, FDI, expansions, closures and financial results, in addition to analysis and explanation of the latest industry events and how these could influence further investment.
-Market Overview:
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Browse all Food research reports at Fast Market Research
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New Market Study, "Brazil Food & Drink Report Q1 2016", Has Been Published
Fast Market Research announces the availability of the new Business Monitor International report, "Brazil Food & Drink Report Q1 2016", on their comprehensive research portal