The Brazilian Jam Market
Despite the fact that jam is not commonly consumed by Brazilians, this sector has been growing over the last few years. In this article, we will take a look at the Brazilian jam market.
As of 2014, the Brazilian food industry has been experiencing a period of expansion, mainly due to the growth of the middle class in Brazil. According to ABIA, the Brazilian Association of Food Industries, the food industry accounted for BRL 400 billion in 2012. The segment of fruit and vegetable products, under which jams are classified, was ranked as the 7th most profitable.
According to a survey by Euromonitor, revenue in the Brazilian jam market grew at an impressive rate of 102% in the five year span between 2007 and 2012, accounting for BRL 586,77 million and jam production grew 14% between 2007 to 2012, accounting for 23,21 tons, highlighting that Brazilian jams are experiencing an increase in average jam prices over time. The increase in the average price of jams in Brazil is mainly due to an increase in the cost of raw materials, namely fruits and sugar.
|Revenue (in BRL million)||290,55||337,75||371,54||422,52||492,48||586,77|
|Quantity (in tons)||20,36||21,11||20,55||21,62||22,42||23,21|
According to the Ministry of Education, the Brazilian jam market is composed of approximately 600 companies, of which more than 83% are micro or small businesses. As it is a very fragmented market, the five largest companies in this sector own only 15% of the market share:
- Kiviks Markmav, with 6,1% of the market share
- Conservas Ritter, with 4,6% of the market share
- Predilecta, with 2,6% of the market share
- Homemade, with 1,7% of the market share
Kiviks Markmav is investing more than BRL 36 million in a new industrial facility near the city of Itatiba in the state of São Paulo that will quadruple the productive capacity of Queensberry jams. While Kiviks Markmav remains the Brazilian market leader since 2007 and was chosen as the most recognized jam brand in Brazil in 2013, other foreign players are trying to insert and assure themselves as important players in the Brazilian jam market. This is the case of the French brand St. Dalfour - which is becoming increasingly important to this sector due to its formula not containing any added sugar - that posted a growth in revenue of 22% between 2011 to 2012. Another company interested in inserting itself in the Brazilian jam market is the British company Wilkin & Sons, that was granted the Royal Warrant of quality in 1954.
Another interesting player to observe is Homemade, that went from 1,2% of market share in 2007 to 1,7% in 2012 while its other big competitors remained relatively stable throughout the same period. As a matter of fact, Homemade increased revenue by more than 60% from May 2012 to May 2013 due to a new design in its packaging and branding.
Export of jam
Brazilian producers export jams to more than 16 countries worldwide, with a total revenue of approximately USD 31 million. The exotic taste of Brazilian fruits and products linked to the Amazon are the main attractions of Brazilian jams. The countries where Brazilian jams are the most sought after are:
- United States of America
Features and trends of the Brazilian jam market
The Brazilian taste towards jams is gradually changing, as Brazilians now tend to be more attentive and critical to poor choice of flavours, low quality of ingredients and especially to high amounts of sugar and chemical stabilizers. This new trend explains why the French brand St. Dalfour and the Brazilian brand Homemade are growing inside this niche.
Together with the expansion of the Brazilian GDP and the increase of purchasing power amongst all Brazilians, consumption of fruits and products thereof is expected to grow in the years to come, especially within classes C and D. Also, jams are expected to win the competition against other substitute products for breakfast and snacks, due to a strong promotion campaign focusing on how a new kind of jam will prove to be a healthy product.