This report provides the results for the Oils and Fats market in Brazil from Canadean's unique, highly detailed study of consumers' Consumer Packaged Goods (CPG) consumption habits, and forms part of an overall series covering all CPG product markets. Its coverage includes, but is not limited to, consumption behaviors, the extent to which consumer trends influence their consumption, the value of the market these trends influence, and brand and private label choices as well as retailer choices in organized retail market. Much of this information can also be analyzed by specific consumer groups, providing hard and fast data on consumers and markets at the product category level.
Introduction and Landscape
Why was the report written?
Marketers in the Oils and Fats market face a major challenge. Understanding market size and segmentation is valuable, but the key to effective targeting is knowing just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends. This data report solves these problems by providing survey-based data on consumer trends and consumer groups, and market data that shows the exact size of consumer groups, how much of the Oils and Fats market they account for, and which consumer trends drive their behavior.
What is the current market landscape and what is changing?
The overall market is dominated by oil sales, and in the long term, unless younger consumers can be encouraged to consume these products as frequently as their older counterparts do, retail sales volumes may well come under pressure. As such, players in this market will need to seek out the pockets of growth that exist and seek to prevent the loss of consumers from the market.
What are the key drivers behind recent market changes?
Consumers' uptake of products and the influence of consumer trends are fundamental causes of change in markets, which means that knowing what these trends are, and the extent to which they are influential, crucial. The survey-based data provided in this report examines over 20 consumer trends that affect the market, and examines the share of consumption across 26 consumer groups. This data provides a detailed insight into exactly who the consumer is and just how much impact the latest consumer trends have.
What makes this report unique and essential to read?
The data provided is unique in the market as it tracks consumer behavior through to its actual value impact on a product market. This provides readers with a unique data analysis of the market, allowing marketing tactics and strategy to be updated in line with the very latest consumer behaviors.
Key Features and Benefits
Consumer data, based upon proprietary surveys and then consumer group tracking and modeling for the following specific categories: Oils and Solid Fats.
Detailed consumer segmentation covering over 26 consumer groups, 20 consumer trends, and consumption frequency for each product category.
Consumer penetration for brands and private labels, based upon the original survey and then subsequent consumer tracking and modeling.
Unique organized retailer choice data at the product category level, based upon the original survey and then subsequent consumer tracking and modeling.
Key Market Issues
The general pattern of consumption frequencies indicates that younger consumers are less frequent consumers of Oils, the major category in the market. Whether for health concerns or because of simply different food preferences, if these consumption patterns continue into the longer term they will have a retarding effect on the total market.
The Oils and Fats market is dominated by the Oils category which accounts for a 96% share, by value, of the overall market in Brazil. This means that for industry players what happens in Oils is the key
Branded products account for the vast bulk of sales in both categories. To date, Private Labels have been unable to gain any significant Penetration. However, brands should not assume they automatically have the market to themselves, in other countries Private Labels have been able to take significant Penetration, and brands would be well advised to seek to prevent this happening now.
There is a marked difference between the two categories, to the extent that Consumer Trends have a direct influence on market values. In Solid Fats, this result is driven by people not often acting on these trends, and as a result, Solid Fats appears to be a largely commoditized market. However, for Oils there is greater scope to target consumer trends to help sales efforts.
Further pressure will be put on the future sales of Oils because Better Value for Money influences the largest part of the market of all trends (in value terms). This highlights that in the future, Oil companies are likely to need to compete, not only to offer consumers products suited to their needs, but to increasingly do so at a competitive price.
While the leading three brands have significant shares, beyond these positions, the market is highly fragmented, allowing room for smaller (and new brands) to grow, as well as for Private Labels to enter the market.