NOTE: You can read the Portuguese version of this note by clicking here.
Brazil keeps improving its growth in retail sales. According to the Retail Performance Indices (IPV, as per the Portuguese-language acronym) published by HiPartners and the Brazilian Society of Retail and Consumption (SBVC), retail sales in Brazilian retail stores increased by 22% during the first half of 2022, with a massive flow of consumers into shopping centers. Likewise, during Black Friday in November 2022, retail sales increased by 6.9% compared to 2021.
Growth has been equally favorable for Brazilian e-commerce. Large Brazilian retailers such as Mercado Livre and Amazon notched powerful sales figures during Black Friday in November 2022. For Amazon, 2022 has been “its best Black Friday,” as it rang up sales of more than 3 million products in Brazil in just 48 hours. As for Mercado Livre, the company reported a 10% growth in its Black Friday sales during the first 48 hours, and a total increase “above 30%” by the end of the week.
Magazine Luiza (Magalu) is another important player in Brazil’s retail market. According to Magalu’s investor report Q3 2022, the average annual growth of Magalu’s e-commerce has been 46% over the last three years. As for total sales (both e-com and physical), the average annual growth has been 28%.
Several products are contributing to this retail success in Brazil. Below we examine some of the products with the best growth projections for 2022 and 2023.
The 2023 Latin America Forecast
Five massive trends that will shape Latin America not only for in 2023—but also throughout the rest of the decade into 2030
#1 Home Theaters and Projectors
According to surveys by Criteo, there has been an exponential growth in sales certain types of consumer electronics in Brazil, particularly home theaters and projectors.
According to Criteo’s trend analysis, in Brazil home theater sales had a year-over-year increase of 78% in October 2022. In June 2022, the y-o-y growth for home theaters in Brazil was an astounding 283%.
Similarly, the sale of projectors had a y-o-y growth of 104% in Brazil in October 2022. In April 2022, projector sales registered a y-o-y growth of 161%.
#2 Electric Vehicles
The light electric vehicle market in Brazil posted a 10.5% increase in sales between January and October 2022, with 38,700 units sold during this period, according to the Brazilian Association of Electric Vehicles (ABVE, as per Portuguese-language acronym).
The ABVE forecasts that the electric vehicle market in Brazil will close with a sales increase of 25-31% in 2022, projecting that 44,000-46,000 electric vehicles will be sold by year’s end.
In addition, battery-powered electric vehicles (BEV) are the best-selling type of electric vehicle in Brazil. Between January and October 2022, 6,800 BEVs were sold, an increase of 41.5% “over the total number of BEV vehicles registered (…) between 2012 and 2021 (4,800),” ABVE reported.
#3 Sports Nutrition Products
In Brazil, sports nutrition products—such as protein powder, creatine, supplements, energy and protein bars, etc.—will post sales growth of 5.8% CAGR between 2022 and 2030, according to Grand View Research.
Products geared toward cognitive repair will have the largest share in Brazil, followed by energy products and those for strength and endurance.
According to Report Ocean, cosmetic sales in Brazil will have a CAGR of 5% between 2022 and 2028. The cosmetics market in Brazil includes hair products, skin care products, makeup, fragrances, perfume, hygiene products, and oral cosmetics.
In addition, Brazil’s market of cosmetics, personal hygiene and perfumery showed 10% increase in sales during the first half of 2022, according to the Brazilian Association of the Personal Hygiene, Perfumery and Cosmetics Industry (ABIHPEC).
According to the National Association of Car Distribution in Brazil (FENABRAVE, as per Portuguese-language acronym), sales of new motorcycles in Brazil will increase by 15% in in 2022 compared to 2021.
During the first half of 2022, FENABRAVE reported the sale of 637,000 motorcycles in Brazil compared to the 517,000 units sold in 2021, an increase close to 23%.
#6 Video Games
The video game market in Brazil posted 5% sales growth in 2021, with overall revenues totaling nearly US$2 billion, according to data shared by PagBrasil.
In 2022, the video game market in Brazil is expected to increase its sales by 5.3%.
In addition, Brazil continues to lead the video game market in Latin America. It is estimated that 70% of the Brazilian population plays video games, according to PagBrasil.
Contact us if you’re interested in further market research about the consumer market in Brazil or other countries. Over the past 30 years we’ve conducted more than 600 consumer market research studies for Latin America. These include market landscape studies, opportunity benchmarking, competitive intelligence and more.
You may also want to explore our other stories on top-selling products in Latin America overall and in markets such as Mexico, Argentina, Colombia, and Chile.