Takeaway Food Market In Brazil
Nowadays, less time is devoted to cooking meals as most people’s lives are growing busier, this has led to a growth in the takeaway food market. In this article, we will take a look at the Brazilian takeaway food market.
Overview
The success of the takeaway food market in Brazil may be credited to various factors. First of all, it is a lot easier to order food from home or the office and this is especially valid for large cities like São Paulo or Rio de Janeiro, where queues and traffic jams can be a real problem for busy people.
Also more women are becoming part of the workforce, leaving less time to cook meals. And lastly, it is necessary to say that the vast majority of this market is composed of fast-food chains. This is mainly due to these being less time-consuming and more efficient in the making and in the delivery of meals.
Market Size
According to estimates by Abrasel, Associação Brasileira de Bares e Restaurantes - which is Portuguese for Brazilian Association of Bars and Restaurants - the takeaway food market in Brazil had an overall revenue of BRL 8 billion in 2013. In addition to this, a report released by Rizzo Franchise states that there is a positive outlook for this sector’s future, as it is expected to grow at a rate of 14,5% per year.
This growth is the main reason why there are 26 franchising networks - amounting to 587 franchises - working exclusively in the takeaway food market. These accounted for nearly BRL 200 million in revenue in 2013, a growth of 33% when compared to 2012. For other restaurants that have also started delivering food, this activity represents an average of 18% of their total revenue.
Main players
As explained in this article about the Japanese and Chinese food market in Brazil, Brazilians are growing increasingly fond of these types of cuisine. This is valid for the takeaway market as well, as these cuisines are perceived as healthier options than fast food chains. Because of this, the main players in the takeaway food market in Brazil are Lig Lig and China in Box, with Domino’s Pizza closing the top three. These three companies account for 75% of all sales in the takeaway food market in Brazil.
Ordering online or by smartphone apps
Orders made online or by smartphone apps accounted for only 5% of the total revenue in this market in 2013, but it is its growth that is remarkable, since it accounted for only 2% in 2012. The main players in this growing market are Just Eat, the online food ordering company based in London, and its Brazilian representative, RestauranteWeb, which joined forces with iFood in 2014. Thus, it has increased their market share to slightly more than 70%. The other major player is Hellofood, which is Just Eat’s main competitor in Brazil.
Peculiarities of the takeaway food market in Brazil
According to a survey by ComerNaWeb, the main characteristics of the customers in this sector are:
- 60% of all takeaway orders are placed by women
- 70 of all takeaway orders are placed by single people
- 45% of all takeaway orders are placed between Friday night and Sunday night
- During the week, it is more common to order food for lunch, especially in regions where there are more workers
- Most consumers are between the ages of 25 and 35 and are from Classes A and B, despite consumers from Class C having grown more than 66% in 2013
The most ordered food types are:
- Pizza - 26%
- Hamburgers - 21%
- Japanese food - 15%
- Brazilian food - 14%
As with most other markets, the takeaway food market in Brazil is strongest in the Southeastern region, especially in the states of São Paulo and Minas Gerais. This is due to the fact that these states are more urbanized and thus its population is more likely to order food without going to restaurants due to busy lifestyles. In fact, 63% of all franchising networks working exclusively with takeaway food are established in the state of São Paulo.
However, other states are also growing in importance in this market. This market has grown 270% between 2007 to 2012 in Espírito Santo and online orders have grown more than 1100% between 2012 to 2013 in the state of Minas Gerais. Other companies like EntregaDelivery and Central do Delivery merged in 2014 with Hellofood and iFood, reveal the interest of both major players in expanding their activities towards the Northern and Northeastern states.
This market has some other peculiarities as well, such as having no incentives by the government. In many European countries, it is more common to order takeaway food because it is cheaper when compared to eating in a restaurant or cafeteria. Also, most Brazilians are not used to eating in their workplaces, so it is a common habit to go out and eat their lunch in a restaurant or cafeteria near their office.
Both of these peculiarities might be considered a hindrance for the growth of the takeaway food market in Brazil, but there is a factor that boosts this sector: almost every restaurant will offer the option for takeaway food, even though some will charge a fee for providing the disposable container to hold the food.