Brazil The Pet Sector PIJAC Webinar November 2014
Jan 02, 2021
Brazil
The Pet Sector
PIJAC Webinar
November 2014
A World within a Country
Countries with nominal GDP over US$ 600 billion
Countries with population over 100
million
Countries with area over 2 million km²
Australia
Russia
USA
Brazil
China Japan
Bangladesh
Nigeria
Pakistan
Indonesia
Canada
France
Germany Italy
Spain
Mexico
South Korea Netherlands
India
U K
Turkey
Algeria
Argentina
Congo
Kazakhstan
Saudi Arabia
Sources: IMF(GDP), UN
3 Sources:
Brazil - Banco Central do Brasil
Brazil
GDP: US$2.4 tri (2011)
GDP per capita: U$12,696
South America’s Powerhouse
Brazil represents 50%
of South America’s
total GDP
Brazil – Territorial Division Divided in 5 different regions (by the Brazilian Institute of Geography and Statistics)
1) North Region 2) Northeast Region 3) Central-West Region 4) Southeast Region 5) South Region
A Country of Contrasts
NORTHEAST
POP – 27,6%
PP – 18%
SOUTHEAST
POP – 42,6%
PP – 51,6% SOUTH
POP – 14,6%
PP – 18,4%
MID-WEST
POP – 7,1%
PP – 6,6%
NORTH
POP – 8,1%
PP – 5,4%
POP=Population
PP=Purchasing Power
Globo presentation to MBAs
Increasing Buying Power
Source: Cetelem BGN Observador Brasil, Fecomercio SP, Data Popular .
C a n a d a
& B r a z i l
Brazil
Canada’s 10th
Largest Export
Market
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Top 10 Canadian Exports
Source: Statistics Canada
Top 10 Canadian Imports
Source: Statistics Canada
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Canada-Brazil Bilateral Investments 2011
CDI
C$ 9.8 billion
Sectors:
Agriculture, Mining,
Shopping Centres,
Telecommunications,
Software, Environmental
Ind. Automotive Parts
Brazil is the 12th largest
destination for Canadian
outward investment
FDI
C$ 18.6 billion
Sectors:
Mining,
Steel,
Beverages,
Cement,
Software
Canada is the 6th largest
destination for Brazilian
outward investment
Source: Statistics Canada
Pet Market
• Ranks as the 2nd largest pet market in the world (after the U.S.A.)
• Has the 4th largest pet population in the world
• Growth of 8.2% in 2014
• Revenues of R$16.4 billion (approx US$5.3 billion)
• Monthly expenditure vary from US$50.00 to US$150
• Dog food expenses may represent from 4.5% to 11% and cat food 1.8
and 4.1 of families’ budget (C and D respectively)
• 50% of pet owners are estimated to still feed pets with leftovers.
• High tax structure, representing approx 50% of the price.
Pet Market Highlights
• Production of petfood is expected to reach 2.4 million tons in 2014 (increase
of 4.5% over previous year)
• Half of the production comes form the states of Parana, São Paulo and Minas
Gerais.
• Dog food represent 91.1% of the total volume, the equivalent of 470 thousand
tons,
• São Paulo is the largest market in the country, with an estimated population of
14 million pets and 4.800 petshops.
• 225 thousand direct jobs
Industry
Source: Canadian Consulate Analysis
Strong competition from both local and foreign
Language
Logistics
Tax system (impact on landed cost)
Macroeconomic volatility (exchange rates, monetary)
Transportation and infra-structure (roads, ports, etc)
• Regulatory enviroment
Challenges for Doing Business
Source: World Economic Forum, Morgan Stanley LatAm Economics.
Challenges to Canadian Exporters
Strong competition from both local and foreign
Language
Logistics
Tax system (impact on landed cost)
Macroeconomic volatility (exchange rates, monetary)
Transportation and infra-structure (roads, ports, etc)
Regulatory enviroment
Opportunities
• Large country with an expanding population, rising salaries and a favored
market for foreign investment in the region, Brazil’s medium-term prospects
remain encouraging
• Increasing demand for value-added products
• Increasing exposure of Brazilians to foreign cultures and products
• Shophisticated and expanding retail sector
Pocket guide to understand Brazilians
What Brazilians say: Yes (Sim) What foreigners hear: Yes
What Brazilians mean: Anything from yes through perhaps to no
What Brazilians say: Perhaps (Talvez) What foreigners hear: Perhaps
What Brazilians mean: No
What Brazilians say: No (Não) What foreigners hear (on the very rare occasion a Brazilian says it): No
What Brazilians mean: Absolutely never, not in a million years, this is the craziest thing I've ever been asked
What Brazilians say: I'm nearly there (Tô chegando) What foreigners hear: He's nearly here
What Brazilians mean: I've left
What Brazilians say: I'll show up later (Vou aparecer mais tarde) What foreigners hear: He'll be here later
What Brazilians mean: I won't be coming
What Brazilians say: Let's stay in touch, ok? (vamos combinar, ta?) What foreigners hear: He'd like to stay in
touch (though, puzzlingly, we don't seem to have swapped contact details)
What Brazilians mean: No more than a Briton means by: "Nice weather, isn't it?“
What Brazilians say: A hug! A kiss! (Um abraço! Um beijo!)
What foreigners hear: I've clearly made quite an impression—we've just met but he/she really likes me!
What Brazilians mean: Take care, cheers, bye
What Brazilians say: You speak Portuguese really, really well! (Você fala português super-bem!)
What foreigners hear: How great! My grammar and accent must be coming on a lot better than I thought
What Brazilians mean: How great! A foreigner is trying to learn Portuguese! Admittedly, the grammar and accent
are so awful I can barely understand a word... but anyway! A foreigner is trying to learn Portuguese!
By Brazil-based journalists Andrew Downie and Dom Phillips, who contributed items, and Olivier Teboul, a Frenchman living in Belo
Horizonte whose list of "Brazilian curiosities" (in Portuguese) has generated a huge response from amused, and sometimes
bemused, locals.
21
Thank you!
Merci !
Obrigado!
Consulate General of Canada
Av. Das Nações Unidas, 12901
Torre Norte – 16º Andar
04578-000 São Paulo, SP
Brazil
Web site: www.brazil.gc.ca
E-mail: [email protected]