Market and Trade Data
Look for
Kosher Niche in Brazil
February
2006
Printable version
By Fabiana
Fonseca
See also…
FAS Report BR5019
Brazil hosts the world’s 11th largest Jewish
community—100,000 consumers who have accounted for a
dramatic rise in kosher food sales over the past 10
years.
Within this
population, Orthodox Jews, numbering 10,000, have been
the driving force behind increasing sales.
United
States Top Supplier
Most major U.S. kosher certifications are accepted in
Brazil, an important consideration for exporters who
want to gain the patronage of Orthodox consumers.
There are
no official country statistics on kosher consumption
rates. But, it is estimated by retail representatives
that imports make up a hefty 90 percent of all kosher
sales in Brazil. The United States is a primary supplier
of kosher foods, followed by Israel and the European
Union.
In addition
to the Jewish population, other ethnic and religious
minorities also select kosher food products. It has been
estimated by retailers that vegetarians and other
consumers with food intolerances account for about 5
percent of purchases. (The kosher pareve designation
confirms the absence of meat and/or dairy ingredients.)
Although
the diversity of kosher foods remains small compared to
mainstream products, demand is increasing. Younger, more
affluent non-Jewish Brazilians, concerned with food
quality and health issues, demand more variety. Unlike
the general population, these consumers do not equate
kosher foods with religious compliance; they do see them
as premium, well prepared and desirable products.
Domestic
Certification Strict
A nonprofit institution,
BDK (Beit Din Kashurut), was recently created to
increase the variety and reduce the costs of approved
domestic kosher foods. Before BDK, only the rabbi of
each congregation could identify companies and recommend
products for members. Certification costs under this
system could reach up to $5,000.
Though
rabbis are still responsible for supervising and
certifying foods, their task is becoming easier with the
oversight and expertise provided by BDK.
Retailers
Rely on Importers
In São
Paulo and Rio, major retailers stock kosher food
sections at stores where Jewish populations are
concentrated. There are a few stores devoted to only
kosher products.
Retailers
generally rely on food importers and distributors to
supply products for their stores. As a result of less
availability, supermarkets tend to price kosher products
30-100 percent higher than other products.
One
underlying consideration for pricing--if prices are
comparable, importers often will select kosher products,
as they meet the needs of both the kosher and mainstream
markets.
Domestic
Production Up
Retail
professionals in Brazil estimate domestic production of
mostly basic foods now accounts for about 10 percent of
the kosher products sold on their shelves. Constrained
by low demand, traditional food manufacturers that
produce some kosher items must interrupt regular
production runs to make the process changes to meet
kosher requirements.
However, as
of 2004, Brazil had 150 medium-sized companies producing
kosher-certified products on a regular basis. These
processors have concluded that kosher production does
not require significant changes in their plants, and
diversification makes their products more competitive.
Promotions
Geared to Holidays
The São
Paulo Agricultural Trade Office recommends that U.S.
suppliers explore promotion opportunities with retail
chains, focusing on holidays such as Passover in the
spring and Rosh Hashanah in the fall. Promotions should
be carried out 3-4 weeks before the holiday and
emphasize the quality of the foods.
Besides
professionals in the food retail industry, rabbis and
Jewish congregations in Brazil are good sources of
information on what products are desirable.
Fabiana Fonseca is an
agricultural marketing specialist in the FAS
Agricultural Trade Office, São Paulo, Brazil. E-mail:
ATOSaoPaulo@usda.gov |
