Frozen Bread Market in Brazil

Frozen Bread

Frozen bread has proven successful in neighboring South American countries and Brazil is very likely to follow suit. The highly mature Brazilian bread category is expected to contract further, in volume terms, after shrinking by 0.6% in 2015. Although many consumers still collect their bread fresh from the local bakery, this is a habit that will suffer as societal needs evolve.

By Chris Brockman, research manager, Mintel Food & Drink-EMEA Region 

It’s hard to think of a more mature food category in Brazil than bread. It boasts almost complete consumer penetration of 97%, according to Mintel’s report Bread and Baked Goods – Brazil – August 2016. However, maturity comes with its own problems and the category is struggling to grow in volume terms. Mintel estimates that retail sales of packaged bread and bread products contracted 0.6% in 2015, and projects that the category will shrink by 1.8% this year. Indeed, as Brazilians get older (it is estimated that there will be three times as many consumers aged 65+ in 20 years’ time) per capita consumption of bread is expected to decline still further as habits change.

A mature category in need of a reshape

Manufacturers and retailers face a significant challenge in combating this market shrinkage, and one opportunity they may consider to develop and reshape the category is to expand the market for frozen bread baked off in-store. Currently, Brazilians continue to buy a significant proportion of their bread fresh from the local bakery ...