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TABLE OF CONTENTS 1. Brazil Nutraceuticals Industry Introduction 1.1. Government Rules and Regulations 2. Brazil Nutraceuticals Industry Size by Revenues, 2006-2012 3. Brazil Nutraceuticals Market Segmentation by Types of Products, 2006-2012 4. Brazil Functional Food and Beverages Market Introduction 4.1. Brazil Functional Food and Beverages Market Size by Revenues, 2006-2012 4.2. Brazil Functional Food and Beverages Market Segmentation by Product Form, 2009-2012 4.2.1. Brazil Functional Food Market Introduction and Size, 2009-2012 4.2.1.1. Brazil Functional Food Market Segmentation 4.2.1.2. Market Shares of Major Brands in Brazil Functional Food Market, 2006-2012 4.2.2. Brazil Functional Beverages Market Introduction and Size, 2009-2012 4.2.2.1. Brazil Functional Beverages Market Segmentation, 2009-2012 5. Brazil Dietary Supplements Market Introduction and Size, 2006-2012 6. Brazil Nutraceuticals Industry Trends and Developments 7. Brazil Nutraceuticals Industry Future Outlook and Projections, 2013-2017 7.1. Cause and Effect Relationship Analysis of the Latin America Nutraceuticals Industry 8. Macroeconomic Factors Affecting Brazil Nutraceuticals Industry 8.1. Population Aged 40-and Above in Brazil, 2006-2017 8.2. Public Health Expenditure in Brazil, 2006-2017 8.3. Out-Of-Pocket Health Expenditure in Brazil, 2006-2017 8.4. Obesity Rates in Brazil, 2006-2017 9. Appendix 9.1. Market Definition 9.2. Abbreviations 2
9.3. Research Methodology Data Collection Methods Approach Variables (Independent and Dependent) Multi Factor Based Sensitivity Model Final Conclusion 9.4. Disclaimer 3
LIST OF FIGURES Figure 1: Market Structure of Brazil Nutraceuticals Industry Figure 2: Brazil Nutraceuticals Industry Market Size on the Basis of Revenues in USD Million, 2006-2012 Figure 3: Brazil Nutraceuticals Industry Market Segmentation by Type of Products on the Basis of Revenue Contribution in Percentage, 2006-2012 Figure 4: Brazil Functional Food and Beverages Market Size on the Basis of Revenues in USD Million, 2006-2012 Figure 5: Brazil Functional Food and Beverages Market Segmentation by Product Form on the Basis of Revenue Contribution in Percentage, 2009-2012 Figure 6: Brazil Functional Food Market Size on the Basis of Revenues in USD Million, 2009-2012 Figure 7: Brazil Functional Beverages Market Size on the Basis of Revenues in USD Million, 2009-2012 Figure 8: Brazil Dietary Supplements Market Size on the Basis of Revenues in USD Million, 2006-2012 Figure 9: Brazil Nutraceuticals Industry Future Projections on the Basis of Revenues in USD Million, 2013-2017 Figure 10: Population Aged 40-and Above in Brazil in Million, 2006-2017 Figure 11: Public Health Expenditure in Brazil in USD Million, 2006-2017 Figure 12: Out-of-Pocket Health Expenditure in Brazil in USD Million, 2006-2017 Figure 13: Obesity Rates in Brazil as a Percentage of Population, 2006-2017 4
LIST OF TABLES Table 1: List of Approved Claims Table 2: Brazil Functional Food Market Segmentation by Type of Products on the Basis of Revenue Contribution in USD Million, 2009-2012 Table 3: Market Shares of Major Brands in Brazil Functional Food Market on the Basis of Revenue Contribution in Percentage, 2006-2012 Table 4: Brazil Functional Beverages Market Segmentation by Type of Products on the Basis of Revenues, 2009-2012 Table 5: Cause and Effect Relationship Analysis between Industry Factors and Expected Brazil Nutraceuticals Industry Prospects Table 6: Correlation Matrix of the Brazil Nutraceuticals Industry Table 7: Regression Coefficients Output 5
BRAZIL NUTRACEUTICALS INDUSTRY SIZE BY REVENUES, 2006-2012 The benefits derived in terms of increased quantity of nutrients in food products is expressed in the form of higher price being charged for nutraceuticals, in comparison to normal food and beverages. An increasing affluence in the country, supported by the lowering of unemployment rates have provided an encouraging environment for the The revenues of the market grew by ~% in 2012, inclining from USD ~ million registered in 2011 in 2012, reflecting a CAGR of ~%... revenues of the nutraceuticals industry to prosper over the years The market size of the nutraceuticals industry has expanded from USD ~ million in 2006 to USD ~ million Figure: Brazil Nutraceuticals Industry Market Size on the Basis of Revenues in USD Million, 2006-2012 16,000.0 14,000.0 12,000.0 USD Million 10,000.0 8,000.0 6,000.0 4,000.0 2,000.0 0.0 2006 2007 2008 2009 2010 2011 2012 6
BRAZIL NUTRACEUTICALS MARKET SEGMENTATION BY TYPES OF PRODUCTS, 2006-2012 The contribution of the functional food and beverages has showcased a fluctuating trend over the review period (2006-2012). The share of fortified products has advanced from ~% in 2006 to ~% in 2012 The contribution of the dietary supplements market, whilst has overall declined from ~% in 2006 to ~% in 2012, although it noted substantial growth in the period of 2010-2011. An increase in the variety, forms and types of functional food and beverages has been primarily responsible for capturing growing shares of the nutraceuticals market over the years. Figure: Brazil Nutraceuticals Industry Market Segmentation by Type of Products on the Basis of Revenue Contribution in Percentage, 2006-2012 Percentage 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2006 2007 2008 2009 2010 2011 2012 Functional Foods and Beverages Dietary supplements 7
BRAZIL FUNCTIONAL FOOD AND BEVERAGES MARKET SEGMENTATION BY PRODUCT FORM, 2009-2012 Similar to the situation in other countries, the functional or fortified food has historically contributed a larger share in the overall revenues of the fortified products. However, the revenues of the functional food have noticed a continuous decline in their share over the span of 2009-2012. The share of fortified food, which was ~% in 2009, slumped to ~% in 2012 Figure: Brazil Functional Food and Beverages Market Segmentation by Product Form on the Basis of Revenue Contribution in Percentage, 2009-2012 100.0% Percentage 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 26.8% 2009 2010 2011 2012 Functional Foods Functional Beverages BRAZIL FUNCTIONAL FOOD MARKET SEGMENTATION The functional food market is quite diverse and features various fortified versions of conventional food. Dairy products have accounted for the highest share of revenues from the sales of packaged fortified products in Brazil. Specifically, yoghurt and flavored milk drinks 8
have recorded a surging demand over the review period (2009-2012). The other major products amongst functional food include fortified bakery items including biscuits and breakfast cereals Table: Brazil Functional Food Market Segmentation by Type of Products on the Basis of Revenue Contribution in USD Million, 2009-2012 Fortified/Functional Packaged Food 2009 2010 2011 2012 CAGR (2009-2012) Dairy products Yogurt Flavored milk drinks Fresh cheese and quark Milk Others Bakery products Biscuits Breakfast cereals Confectionery Medicated sugar confectionery Gum Baby food-milk formula Oils and fats Snack bars- Energy and nutrition bars Soups Other food Total Source: Ken Research 9
MARKET SHARES OF MAJOR BRANDS IN BRAZIL FUNCTIONAL FOOD MARKET, 2006-2012 The functional food market in Brazil is highly cluttered with higher number of food manufacturing companies. The greater traction of food manufacturers stems from the fact that the food market in Brazil is crowded and competitive, typified by pressured profit margins. This has created a financial imperative for market players to pursue methods of differentiating products and enhancing flagging margins by entering into functional food products markets. The leading ten players of functional food market together contributed a share of an approximate ~% in the overall revenues in 2012 Table: Market Shares of Major Brands in Brazil Functional Food Market on the Basis of Revenue Contribution in Percentage, 2006-2012 Brand Company 2006 2007 2008 2009 2010 2011 2012 Ninho Nescau Activia Toddy Vitarella Yakult Richester Tang Trakinas Nestlé Nestlé Danone Groupe PepsiCo Indústria de Alimentos Bomgosto Yakult Honsha M Dias Branco SA Indústria e Comércio de Alimentos Kraft Food Kraft Food BRAZIL FUNCTIONAL BEVERAGES MARKET SEGMENTATION, 2009-2012 Over the period of 2009-2012, the sales of fortified and functional concentrates have been amongst the leading products of the functional beverages market. In 2012, the sales of these drinks increased at a CAGR of ~%, reaching to USD ~ million, from USD ~ million in 2009 10
The highest growth however has been showcased by energy drinks, which have grown from USD ~million 2009 to USD ~ million in 2012, at an annualized growth of ~%. Table: Brazil Functional Beverages Market Segmentation by Type of Products on the Basis of Revenues, 2009-2012 Category 2009 2010 2011 2012 CAGR (2009-2012) Soft drinks Fortified/Functional Concentrates Energy drinks Sports drinks Fortified Cola Carbonates Fruit/Vegetable juice Hot drinks Flavored powder drinks Fruit and Herbal Tea Other Hot drinks Total 11
BRAZIL DIETARY SUPPLEMENTS MARKET INTRODUCTION AND SIZE, 2006-2012 The dietary supplements sector of Brazil is amongst the fastest growing markets in the global nutraceutical industry, and accounted for ~% of the overall revenues of the dietary supplements market in Latin America in 2012. Much of the growth potential for the dietary supplements The dietary supplements sector of Brazil is amongst the fastest growing markets in the global nutraceutical industry market in Brazil has been a result of changing demographics as well as continuing shift in the eating habits of people over the years The market of dietary supplements has increased by ~% in value terms during the period of 2006-2012. The market clocked revenues of USD ~ million in 2012, mounting from USD ~ million in 2006 Figure: Brazil Dietary Supplements Market Size on the Basis of Revenues in USD Million, 2006-2012 1,800.0 1,600.0 1,400.0 USD Million 1,200.0 1,000.0 800.0 600.0 400.0 200.0 0.0 2006 2007 2008 2009 2010 2011 2012 12
BRAZIL NUTRACEUTICALS INDUSTRY FUTURE OUTLOOK AND PROJECTIONS, 2013-2017 The nutraceuticals market in Brazil is expected to advance at a swift pace in the next five years (2013-2017), registering growth from both the major segments including functional food and The overall nutraceuticals market of Brazil is likely to achieve revenues worth USD 23,523.5 million by 2017, registering a CAGR of ~ over the 2012-2017 beverages and dietary supplements. The revenues of the market will be encouraged by the growing need for health maintenance, owing to rising fitness problems and increasing obesity rates. Other macroeconomic factors including growing economy, mounting disposable incomes and increasing urbanization are expected to fuel the growth of nutraceuticals in Brazil The overall nutraceuticals market of Brazil is likely to achieve revenues worth USD ~ million by 2017, registering a CAGR of ~% over the 2012-2017. The large population base and spreading preventative and self-health care trends are expected to spur the sales of the nutraceuticals in Brazil over the long term. Figure: Brazil Nutraceuticals Industry Future Projections on the Basis of Revenues in USD Million, 2013-2017 25,000.0 20,000.0 USD Million 15,000.0 10,000.0 5,000.0 0.0 2013 2014 2015 2016 2017 13
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