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Food Processing in Brazil Future Trends Analysis

The Brazilian food processing value chain is poised for significant evolution in the near future, driven by a confluence of global forces and local dynamics. Several key trends are expected to shape the industry landscape, presenting both challenges and opportunities for players across the chain, from agricultural production to retail and food service.

One of the most prominent trends is the growing emphasis on sustainability and Environmental, Social, and Governance (ESG) practices. Both global and domestic consumers, along with international markets, are increasingly demanding food products that are not only safe and healthy but also produced with minimal environmental impact and under ethical conditions. This puts pressure on the entire value chain to adopt more sustainable farming methods, improve traceability, manage water resources efficiently, address concerns related to deforestation (particularly in the Amazon and Cerrado biomes linked to soy and cattle production), and reduce their carbon footprint. Investment funds are also specifically targeting startups focused on improving the environmental footprint of food production and distribution, indicating a financial impetus behind this trend.

Another transformative trend is the accelerated adoption of technology and digitalization throughout the value chain, often facilitated by increased venture capital and corporate venture capital investments in the agrifood tech sector. This includes the rise of AgTech solutions aimed at improving efficiency, resource management, and sustainability at the farm level through tools like digital platforms for trading, farm management apps, and AI-driven analytics. In processing, technology is crucial for enhancing efficiency, quality control, and food safety, including advanced packaging techniques. Within distribution and retail, digitalization is enabling new business models like e-commerce and improving logistics, traceability, and inventory management. These technological advancements are disrupting traditional processes and creating more integrated and data-driven operations.

The evolving consumer demand for healthier, more convenient, and value-added products is a significant trend shaping the processing and retail stages. Consumers are showing a growing preference for natural ingredients, products with lower sugar and fat content, and functional foods that offer health benefits. The demand for convenience, driven by urbanization and changing lifestyles, is boosting the market for ready-to-eat meals and easily prepared foods. Furthermore, there is increasing interest in alternative proteins (plant-based, cellular agriculture), although their widespread adoption in Brazil is still emerging. This trend necessitates continuous innovation in product development, formulation, and marketing to cater to diverse and changing consumer preferences.

Continued market consolidation through Mergers and Acquisitions (M&A) is expected to be a defining feature of the industry in the near future. Following an increase in transaction value in 2024, M&A activity is projected to rise in 2025, driven by a more favorable economic climate. Companies are strategically using M&A to strengthen their core businesses, expand into new product categories and geographic markets, diversify their portfolios, and gain greater control over different stages of the value chain through vertical and horizontal integration. This consolidation is likely to further increase market concentration in key segments, impacting competition dynamics and the relationships between large players and smaller enterprises.

Closely linked to technology adoption is the trend of increased investment in corporate venture capital (CVC) and broader venture capital within the agrifood tech space. While specific CVC investments from major Brazilian food processors into external startups within the 2024-2025 timeframe were not extensively detailed, the participation of prominent agribusiness players as investors in agrifood tech funds and startups (e.g., Minerva Foods, Bunge, ADM, Cargill, Louis Dreyfus Company in funds and platforms) signifies a strategic commitment to leveraging external innovation. This influx of capital is fueling the development and adoption of disruptive technologies and business models across the value chain, from farm management and digital trading to alternative proteins and sustainable practices.

Finally, while challenges, the ongoing efforts and necessary investments to address logistical infrastructure deficits and regulatory complexities represent a critical area of focus and a trend towards seeking solutions. The recognition of the severe impact of poor transportation, insufficient storage, and bureaucratic hurdles is driving the need for targeted investments in infrastructure and efforts towards regulatory simplification. Success in these areas would significantly improve efficiency, reduce costs, and enhance the competitiveness of the entire value chain.

| Trend Area | Potential Impact on Value Chain Stages return value of any expression.

The following formulas return strings that can be computed as dates:

  • Date. Returns the date in number format for a particular day, month, and year. The date is in Excel format.
  • Datedif. Returns the number of days between two dates.
  • Datevalue. Returns the serial number of a date.
  • Day. Returns the day of the week for a particular date.
  • Days. Returns the number of days between two dates.
  • Days360. Returns the number of days between two dates based on a 360-day year.
  • Edate. Returns a date that is a specified number of months before or after another date.
  • EoMonth. Returns the last day of the month, in date format, before or after a specified number of months.
  • Hour. Returns the hour from a time value.
  • Isoweeknum. Returns the ISO week number of the year for a given date.
  • Minute. Returns the minute from a time value.
  • Month. Returns the month from a date value.
  • Networkdays. Returns the number of whole working days between two dates.
  • Networkdays.intl. Returns the number of whole working days between two dates using parameters to indicate which days are weekend days.
  • Now. Returns the current date and time.
  • Second. Returns the second from a time value.
  • Time. Returns the decimal number for a particular time.
  • Timevalue. Returns the decimal number of the time.
  • Today. Returns the current date.
  • Weeknum. Returns the week number of a given date.
  • Weekday. Returns the day of the week for a particular date.
  • Workday. Returns the date before or after a specified number of working days.
  • Workday.intl. Returns the date before or after a specified number of working days using parameters to indicate which days are weekend days.
  • Year. Returns the year from a date value.
  • Yearfrac. Returns the fraction of the year represented by the number of whole days between two dates.

Important: This function is only available if you enable the LANGUAGE=sql parameter in the query header. When used in a query, the language parameter is written as /*+ LANGUAGE=sql */. For example, /*+ LANGUAGE=sql */ SELECT DATE(2020, 01, 01).