Brazil Foodservice Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Brazil Foodservice Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Brazil foodservice market is likely to witness a CAGR of 12.3% during the forecast period (2022-2027).

Brazil was one of the worst hit countries by the COVID-19 pandemic having major impact on several consumer goods and services. The foodservice sector is one of the pillars of the Brazilian economy. As the COVID-19 pandemic gathered, food sales away from home (consumed in hotels, restaurants, catering, and cafés) collapsed. Restaurant reservations declined sharply in early March and fell to practically zero as lockdowns were enforced. With long-term closure, restrictions on dining and no limited tourism activities largely hurt Brazil's foodservice industry growth. However, food delivery activities were allowed in many cities. However, with a lack of robust infrastructure for delivery operations, not all foodservice establishments could compensate for the loss due to lockdown.

The Brazilian foodservice market consists of high-end hotels and restaurants that offer international cuisines to differentiate themselves from competitors, develop new niche markets, and gain high-end consumer attention.

Price, logistics, and bureaucratic costs of imported products further push new chains to find local suppliers to source their products with more consumers willing to try new cuisines.

More foodservice outlets are penetrating the country due to a growing older population with higher disposable income demanding cuisines from foodservice restaurants. Also, the busy lifestyle of the workforce population in the country is giving rise to takeaways and on-the-go food service, along with home delivery trends, which is leading to innovations in distribution channels in the foodservice market. For instance, companies are entering into partnerships with online foodservice providers to expand their reach and consumer base.

The upcoming trend of consumers frequently purchasing from online channels, owing to time-pressed schedules and the availability of different cuisines online has led to the popularity of the channel for purchasing food products. Consumers also purchase food from online channels because of its ease, speed, and precision. Owing to this factor, third-party online ordering and delivery services are becoming increasingly popular in Brazil, with more companies penetrating the market through online platforms, thereby increasing consumer purchases in the country.

Brazil's foodservice market is highly fragmented, owing to the number of unorganized players dominating the market. Globally, due to higher competition, a player like Subway is introducing innovative products to capture a wider consumer base, targeting the precise consumer requirements, thereby making the product more appealing and gaining more market share. The US-based fast-food chains continue to dominate the quick service restaurant sector by partnering with local franchise groups or directly merging with the franchisor in this region. The key foodservice brands in Brazil are embarking on market expansion and innovations in online food service delivery. Some prominent players in the market are McDonald's, Starbucks Coffee Company, Burger King Corporation, and Yum! Brands RSC.

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