Sanitization in Brazil Emerging Consumption Needs Analysis¶

Impact of Behavior Changes¶

The ongoing behavior changes within the Brazilian sanitization sector, primarily catalyzed by the New Legal Framework for Sanitation (Law nº 14.026/2020), are profoundly impacting the value chain and consequently influencing customer consumption behavior and generating new needs. These changes are largely driven by the push for universalization and increased private sector participation.

The accelerated increase in private sector participation and the heightened focus on achieving universalization targets mean that millions of previously unserved Brazilians are gaining access to formal water supply and sewage collection and treatment services. [Portal Gov.br, Marco Legal do Saneamento] This is the most significant impact on consumption behavior: for these populations, consumption shifts from informal or non-existent service use to formal, metered, and billed consumption. For existing customers, the impact can manifest as changes in service provider, potentially leading to different operational practices, customer service standards, and billing systems.

The transformation in investment patterns, driven by the need for massive capital injection (estimated R$ 509-551 billion by 2033) to expand infrastructure, directly impacts the physical availability and reliability of services for current and future consumers. [ABCON SINDCON, SANEAMENTO BÁSICO: Brasil precisa investir cerca de R$ 551 bi para alcançar metas de universalização], [Poder360, Brasil precisará investir R$ 509 bi para universalizar saneamento] Increased investment should lead to expanded networks, reduced service interruptions due to aging infrastructure, and improved treatment quality, thus changing the consumption experience by making it more reliable and safer.

The increased emphasis on operational efficiency and performance, particularly the focus on reducing high water losses (around 40%), aims to ensure that more treated water reaches the customer and that the system operates more sustainably. [Nexo Jornal, Brasil perde quase 40% da água tratada, mostra estudo], [Instituto Trata Brasil, Perdas de Água 2023], [Poder360, Brasil desperdiça 40,3% da água tratada, segundo estudo] While not directly changing how a customer uses water, it impacts the cost structure reflected in tariffs and highlights the value of treated water, potentially influencing customer attitudes towards conservation if accompanied by awareness campaigns.

The encouragement of regionalization of services can lead to more standardized service levels and potentially integrated management across a wider geographic area. For customers, this might mean a change in the entity they interact with for services and a greater consistency in service delivery within a region compared to fragmented municipal systems.

The push for formalization in urban cleaning and solid waste management impacts consumer behavior related to waste disposal, moving away from inadequate practices towards formal collection and sorting for proper treatment and disposal. [Value Chain Analysis, Bottlenecks and Challenges] This necessitates changes in how households and businesses manage their waste internally.

Emerging Consumption Needs¶

Arising from these behavior changes and their impacts on the value chain, several consumption needs are emerging or becoming more prominent among Brazilian citizens:

Need for Universal Access and Connection: The most fundamental emerging need, driven by the universalization targets, is the demand for physical connection to water supply and sewage collection networks in areas currently unserved. This includes populations in remote areas and informal settlements.
Need for Reliable and High-Quality Service: As access expands and infrastructure is upgraded, customers will increasingly demand reliable water supply with consistent pressure and quality, as well as effective sewage collection and treatment that minimizes environmental impact and public health risks. For those receiving services for the first time, reliability and quality are paramount to realizing the benefits of formal sanitation.
Need for Affordable Services and Transparent Tariffs: With increased private participation and the need to recover investments, the affordability of services, particularly for low-income populations, becomes a critical concern. There is an emerging need for transparent tariff structures, clear billing, and accessible social tariff programs or subsidies to ensure equitable access.
Need for Clear Communication and Responsive Customer Service: The transition to new operators (private or regionalized public entities) highlights the need for clear communication channels, understandable information about service delivery, tariffs, and responsibilities, and responsive customer service to address inquiries, complaints, and service interruptions effectively. Newly connected customers require particular support in understanding their new services.
Need for Information and Education on Sustainable Consumption: As the sector focuses on efficiency and resource management (like reducing water losses), there is an emerging need to educate customers on water conservation practices, the importance of proper sewage disposal (not using sewers for solid waste), and proper waste separation for recycling, empowering them to be part of sustainable sanitation solutions.
Need for Resilient Services: Growing awareness of climate change impacts (e.g., extreme weather events, water scarcity) may lead to an emerging need for sanitation services that are resilient to these challenges, including reliable drainage systems and water supply less vulnerable to drought.

Potential Impact of these Needs¶

The emerging consumption needs have significant potential impacts across the sanitation value chain:

Emerging Consumption Need	Potential Impact on the Value Chain
Universal Access and Connection	Drives demand in the Infrastructure and Technology Supply segment for materials and services for network expansion. [Value Chain Analysis, Infrastructure and Technology Supply Segment] Impacts Planning and Regulation by requiring focus on project structuring for unserved areas. Increases activity in Treated Water Distribution and Sewage Collection segments due to network growth.
Reliable and High-Quality Service	Increases demand in Infrastructure and Technology Supply for advanced treatment equipment, monitoring systems, and network maintenance technologies to improve quality and reduce interruptions. Impacts Water Treatment and Sewage Treatment operations, requiring higher performance. Affects Monitoring and Control with increased need for quality monitoring. [Value Chain Analysis, Infrastructure and Technology Supply Segment], [Value Chain Analysis, Monitoring and Control]
Affordable Services and Transparent Tariffs	Impacts Financial Management & Commercial Operations, requiring careful tariff setting, effective billing and collection, and implementation of social programs. [Value Chain Analysis, Financial Management & Commercial Ops] Influences Planning and Regulation regarding tariff methodologies and social equity considerations. Affects the financial viability of service providers.
Clear Communication and Responsive Customer Service	Requires investment in customer relationship management systems and training within Financial Management & Commercial Operations. [Value Chain Analysis, Financial Management & Commercial Ops] Impacts the public image and legitimacy of service providers.
Information and Education on Sustainable Consumption	Creates a need for communication and outreach strategies, often managed within Financial Management & Commercial Operations or dedicated public relations efforts. Can indirectly impact Raw Water Abstraction/Collection and Water Treatment by influencing demand and resource conservation.
Resilient Services	Drives demand for resilient infrastructure design and technologies in Infrastructure and Technology Supply and impacts Planning and Regulation to incorporate climate risk assessment. Increases focus on robust Urban Rainwater Drainage & Management systems. [Value Chain Analysis, Urban Rainwater Drainage and Management Segment]

Addressing these emerging needs requires a value chain that is not only focused on infrastructure expansion but also on operational excellence, financial sustainability, customer engagement, and social responsibility.

References¶

ABREMA. SANEAMENTO DEVERÁ INVESTIR R$ 24 BI AQUÉM DO NECESSÁRIO EM 2024. https://abrema.org.br/saneamento-devera-investir-r-24-bi-aquem-do-necessario-em-2024/ Assembleia Legislativa do Piauí. Brasil: apenas 50% do volume de esgoto é efetivamente tratado. https://www.alepi.pi.leg.br/2023/11/28/brasil-apenas-50-do-volume-de-esgoto-e-efetivamente-tratado/ ABCON SINDCON. SANEAMENTO BÁSICO: Brasil precisa investir cerca de R$ 551 bi para alcançar metas de universalização. https://abconsindcon.com.br/saneamento-basico-brasil-precisa-investir-cerca-de-r-551-bi-para-alcancar-metas-de-universalizacao/ Portal Gov.br. Marco Legal do Saneamento. https://www.gov.br/mdr/pt-br/assuntos/saneamento/marco-legal-do-saneamento Nexo Jornal. Brasil perde quase 40% da água tratada, mostra estudo. https://www.nexojornal.com.br/expresso/2023/10/19/Brasil-perde-quase-40-da-%C3%A1gua-tratada-mostra-estudo Instituto Trata Brasil. Perdas de Água 2023. https://tratabrasil.org.br/blog/perdas-de-agua-2023-indicadores-mais-recentes-e-analise-historica/ Poder360. Brasil desperdiça 40,3% da água tratada, segundo estudo. https://www.poder360.com.br/economia/brasil-desperdica-403-da-agua-tratada-segundo-estudo/ Agência Nacional de Águas e Saneamento Básico (ANA). Normas de Referência - Saneamento. https://www.gov.br/ana/pt-br/assuntos/saneamento-basico/normas-de-referencia Brasil 61. Saneamento: apenas 52,2% do esgoto gerado no Brasil é tratado. https://brasil61.com/n/saneamento-apenas-52-2-do-esgoto-gerado-no-brasil-e-tratado-pnews640250