Brazil from other markets as opportunities lie across all age groups for snacks, cereal and bakery, although motivators remain different, says Canadean.
According to two reports from the research firm Canadean, Brazil is an unusual market because most age groups have a similar share of consumption. It said this was in contrast with emerging countries like India where children are the main snack, bakery and cereal consumers, and developed countries like the US and the UK where older consumers are the chief targets.
Ronan Stafford, report analyst for Canadean, told BakeryandSnacks.com that opportunities will emerge across all age groups, meaning not everyone will be fighting for the same consumer groups.
Age in a young market
“Add in Brazil’s large population (201 million in 2013), and there’s more space for a broader range of products, though marketers still need to carefully target the specific needs and wants of each age group,” he said.
"In 2012 the Brazilian bakery and cereals market totalled over 8.2 billion kilograms, just 1 billion kilograms less than the US market. However the Brazilian savory snacks market is a tenth of the size of the US savory snacks market, standing at 380 million kilograms," said Stafford.
Within bakery and cereals , children aged under nine present the most significant opportunity, he said, as well as older consumers aged 55 and over. These age groups account for 18% of consumption by volume, Canadean data indicates.
The same age groups are important for the savory snacks market in Brazil, while the report also saw young adults aged 25-34 accounting for 17% of savory snack consumption.
Different motivators - functional, value for money, enjoyment
While these age groups are relatively similar, Stafford said there were significant differences in the consumer motivations behind bakery, cereal and savory snack choices.
“Our data shows that Brazilians want functional, good value bakery and cereal products: 23% of consumption is driven by consumer’s search for better value for money, while 21% of consumption is driven by the need to meet age-specific needs,” he said.
“Offering better-for-you bakery and cereal products for kids, such as bread fortified with nutrients to help their growth and development, or whole meal or fiber enriched products for older consumers worried about their gut health.”
In contrast to this, Stafford said that within savory snacks, the younger adult demographic has meant the sector is driven by enjoyment of the products. “The desire to find a savory snack that offers more fun and enjoyment than other snacks was the key influence behind 20% of savory snacks consumption by volume in Brazil.”
Among all age groups, relaxation and ‘me-time’ was also revealed as a key driver of savory snack consumption, with 18% of consumers noting this as an important consideration.
“As a result of this trend the market will see a growing variety of flavors and textures as the experience of snacking increases in importance, be it active enjoyment or the more relaxed me-time,” Stafford said.