How are Brazilians' tastes evolving as their economic prowess grows?
As we detail in our new report, “The Brazil Opportunity: A Guide for Marketers,” Brazil is an increasingly important frontier for international brands. Over the past decade, millions of Brazilians have been lifted out of poverty and into the middle class. By 2020, the annual spending power of Brazilian households is expected to add up to $1.6 trillion, per the Boston Consulting Group.
As income grows, Brazilians’ shopping baskets are expanding and their tastes are evolving. Data collected by Euromonitor International shows that consumers have been allocating substantially more money to housing, food and drink, and transportation during the last decade. Indeed, when income reaches a certain level, shopping behavior changes quickly, according to BCG. When annual household income rises to about $15,000, for instance, spending jumps on postpaid mobile phone plans, and families earning between $15,000 and $30,000 a year say they trade up on cars. The service sector is the most likely to see fast growth, with consumers spending on personal services, financial services and private education.