São Paulo – The volume of imported products sold in Brazilian supermarkets has been growing, and the Brazilian government’s move to exempt a range of food items from import tax is welcomed by the sector, according to the São Paulo Supermarket Association (APAS).
The association, which represents supermarkets in São Paulo state, is hosting the APAS Show this week in São Paulo. Out of the roughly 900 exhibitors, more than 250 are foreign companies from 22 countries. APAS spokespersons spoke to the press on Tuesday (13) about trends in the sector.
“What we’ve observed is that the volume and share of imported products have been increasing, and the sector has looked more and more to offer specific products (from abroad),” said APAS chief economist Felipe Queiroz at the press conference. Queiroz said there are stores and segments within the supermarket industry that have specialized in certain imported products, including those from Arab countries.
The director of marketing, sales, and new business at APAS, Fabiano Benedetti, spoke about the association’s ongoing efforts with authorities to ease the entry of imported goods into Brazil. “We have countless companies still wanting to enter the Brazilian market, and we need to encourage that and work with the authorities to make it easier,” he said. According to him, imported products can be a competitive edge for supermarkets. “If they sell an item that few others offer, customer loyalty can be built through that purchase,” he explained.
Regarding the import tax exemption, Queiroz noted that it does not cover the entire food supply chain, but that for the sectors it does benefit, the impact has been very positive. In March, the Brazilian government eliminated the import tariff on a basket of food items that had seen sharp price increases. These included some products imported from the Arab world, such as sardines and olive oils, as well as meats, coffee, sugar, corn, cookies, sunflower oil, and pasta.
The exemption may be an opportunity for Brazilians to access products from new origins, according to Queiroz. “I’ll give the example of olive oil. The import tax on olive oil was eliminated, and we’re very familiar with olive oils from the northern Mediterranean—Portugal, Spain, Italy—but we often overlook olive oils from the southern Mediterranean. Morocco and Algeria, for instance, produce excellent olive oils, and these products are experiencing exponential growth in the Brazilian market. Even major retail chains are investing in products from that part of the Mediterranean,” the economist said.
Queiroz says the import tax exemption benefits not only supermarkets. “We see it as a welcome measure—it contributes not just to the sector, but especially to consumers, who gain the opportunity to choose from a wider range of products at lower costs and further diversify their shopping baskets,” he said. The temporary measure aims to help lower prices.
Climate change
The rise in prices for most of these foods is linked to another trend in retail mentioned by the APAS experts. It involves a transformation in consumer habits caused by climate change. With more extreme weather affecting crop yields and impacting the availability and prices of food, consumers are choosing to substitute products and brands.
According to a survey by APAS, presented with the CEO of Scanntech Brazil, Thomaz Machado, 95% of Brazilian consumers interviewed have noticed changes in product availability due to climate factors. The research indicates that 64% of buyers have already substituted a brand or product due to price increases. The most substituted items were coffee, beef, eggs, olive oil, milk, fruits, sunflower oil, chocolate, soybean oil, chicken, fish, pork, orange juice, and olives.
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Supermarkets call for higher consumer income
Translated by Guilherme Miranda
