Innovation Norway, P.O.Box 448 Sentrum, NO-0104 Oslo, Norway innovationnorway.no

BRAZILSeafood Market and Consumer BehaviorThe import of seafood to Brazil has been growingfor the last years. Suppliers are from more than 40different countries, but 90% of all the importcomes from: Chile, China, Norway, Argentina,Vietnam and Portugal. According to marketstudies, the consumption per capita of fish in Brazilhas been constantly growing. Though, it is stillunder the average consumption indicated by theWHO. The increase of fish consumption in Brazil isfollowed by an increase in requirements of theconsumer for quality products. Today, the Brazilianconsumer is more informed, and looks for optionsof certified products with quality and practicality.It is possible to observe that the consumer islooking much more for processed products. Ingeneral terms, the consumers are willing to pay ahigh price for products as long as the product hasquality.

Characteristics of the Seafood MarketThe Brazilian government still adopting measuresto protect its national market. Limited competitionon certain segments have led to high consumerprices (combination of high import duties and highmarkups). However, the government fight againstpoverty has created a new middle class that

generates higher retail sales and influencespositively the industry. Today, in Brazil, when itcomes to consumption of animal protein, it isbelieve that seafood accounts for approximately10% of the total. And an increase in the totalparticipation is expected due to the constantsearch for healthy food. The processed seafoodproducts are increasing its participation on theseafood segment offer. More frozen fillets havebeen sold during the last years. The products easyto prepare have come as an alternative toconsumers.

Important Market ActorsDifferent actors are present in the Brazilian market.Agents, Importers and Retailers interact indifferent set ups to offer products to the finalconsumer. In addition, there are national suppliersand promotional entities as market players. Agents: Historically, agents have been theconnecting point between producers andimporters. They are the ones very aware of allproduct characteristics and being able and willingto represent the producers in Brazil. The agentsare definitely a source of the information for theimporters. A lot of business relations betweenproducers and agents are based on personalrelationships that evolved along the many years of

20/APRIL/2017

Market Opportunities forSeafood from Norway

SEAFOOD:Characteristics of the

Brazilian Market

Innovation Norway, P.O.Box 448 Sentrum, NO-0104 Oslo, Norway innovationnorway.no

history of sales of products – e.f. Bacalhau in Brazil.So, even if more and more producers coulddirectly sell to importers the presence of the Agentin the Brazilian market still strong. It is interestingto mention that not necessary producers will haveonly one agent in Brazil, different market relationscan be noticed. In addition, the same company canbe an agent for different producers/competitors. Importers: The importers generally have on theirportfolio many different products. Theirknowledge of the imported product can differ a lotand as so they tend to rely on their Agent ability todescribe the products characteristics. Lately,retailing chains are willing to surpass the importerrole, performing themselves the importer part.Such behavior permits the retailers to achievegains in prices. Retailers: Supermarkets and small independentneighborhood stores are the most used format forBrazilian grocery retailing. The retail sector inBrazil, if compared to other western markets, is notas concentrated. However, there is a high level ofinternationalization. Among the leading retailersare international players, the largest grocery storesare foreign–owned: Companhia Brasileira deDisribuição (Pão de Açucar is part of the group),Carrefour, Walmart Brasil, and Cencosud BrasilComercial. In Brazil, buying is becoming graduallymore centralized. Grocery groups, including largenumber of regional supermarket operators, areusing their growing purchasing power to bypasswholesalers and negotiate directly with suppliers.

HOW CAN INNOVATION NORWAY HELPYOU IN BRAZIL?IN Rio de Janeiro can help you through differentsolutions under our Market Advisory Services.Just check some of the possibilities below andcontact us for further discussions: • BIS Advisory: BIS is free of charge and consists

and refers to deliveries that may take up to 8hours to complete. You will get a short, tailor-made answer regarding potential showstoppersand other crucial issues, which will help you intothe Brazilian Market.

• Market Insight: If your company want to expand

in Brazil, but that first requires more insight intohow the market works and what opportunitiesand barriers exist, IN can deliver an MarketOverview (information in the form of a reporttailored to the company's needs) and MarketVisit (2-3 days market visit program).

• Partner Search: If you are looking for an agent

or would like to meet retailers in Brazil, IN canhelp you to identify these business partners.

• Market Analysis: If your company needs for

more in-depth information to be able to makequalified decisions when entering the Brazilianmarket. IN Rio can especially work on thecritical success factors for your company to takea market position in order to grow. That caninclude essential information of the Brazilianmarket and its rules and regulations.

And if you are looking for an even more flexiblesolution to your company different needs forassistance, contact us about our OperationalAssistance services. We will discuss your currentsituation and needs, and agree on the scope andcontent of the service. It may be for example: - coming into an agreement with an agent and/orretailer, - getting in contact with important people andauthorities to clarify rules and regulations, - hiring the right key personnel or company toguide you through the import licensing process, - advice and sparring related to businessdevelopment.

2

IN Rio de Janeiro - Contacts:

Stein-Gunnar Bondevik - DirectorMobile: +55 21 9993 00 061 / +47 9740 8801Email:stein-gunnar.bondevik@innovasjonnorge.no Renata Prado - Senior Project ManagerMobile: +55 21 9931 23 613email: renata.prado@innovasjonnorge.no https://www.facebook.com/inbrazil/