Why undertake in the food sector? Understand the three main reasons

The food sector in Brazil has consolidated as one of the main drivers of the economy, showing constant growth. The Brazilian Association of Bars and Restaurants (Abrasel) points out that the sector grew 8.5% in the first half of 2024, driven by economic recovery and increased demand for meals outside the home. Brazil ranks fifth in the global food service ranking, reinforcing the potential for expansion.

Digitalization, delivery and variety of business models make the sector an attractive option for new entrepreneurs, who see opportunities in it, even in an unstable economic scenario. The 10 PASTEIS, the largest pastel network in the country with 66 units in operation, is an example of a company that stands out. With almost three decades of history, the brand adopts innovation as a strategy to maintain its relevance. Lucas Nagano, director of new business at 10 PASTEIS, states that the key to success is the constant search for evolution. 

“I believe that what has brought us here is that we are never satisfied with our delivery and thus we are always working to be able to better serve our customers. We have an exclusive sector for new products and the operations team works directly seeking suppliers, studying trends, developing practical tests of products and equipment and researching the needs of consumers”, Nagano comments. 

The food sector in Brazil offers several favorable factors for investment, including:

1. Increasing demand

Urbanization and changes in lifestyle have driven the demand for meals away from home, a result of accelerated routine and lack of time. This scenario favors the expansion of restaurants, cafeterias and delivery services. With a population of more than 210 million people, Brazil represents a significant market, especially with the growth of the middle class, which seeks foods of greater added value.In addition, consumers have prioritized practicality, health and sustainability in their choices, opening space for innovations.

“We constantly invest in differentiated products and personalized service, with seasonal flavors and limited editions, such as Pastel Burger and innovative fillings, to provide exclusive experiences. The secret is to understand the customer's lack around you, whether of a service or product and, from this, you have the way to develop the innovations that will be responsible for your prominence amid the competition”, reveals the director of new business of 10 PASTEIS.

2. Expanding market

Brazil is the fifth largest food service market in the world, reflecting both the size of its population and the relevance of the sector to the economy. In 2022, the market moved R$ 208 billion, according to data from the Brazilian Association of Food Industry (ABIA), highlighting the potential for new entrepreneurs, with opportunities both in large centers and in smaller cities. 

According to ABIA, the food industry plans to invest R$ 120 billion by 2026, reinforcing confidence in the sector.Government initiatives, such as credit lines and tax incentives, also boost the segment.“A resilience of the food sector, considered essential, and its diversification into commodities, industrialized products and services guarantee a constant demand and investment opportunities, even in times of crisis”, shares the executive.

3. Scalability potential

Models such as food trucks, dark kitchens and franchises allow the entry of new entrepreneurs with lower investments. The 10 PASTEIS, for example, adopts the franchise model, offering structured support to franchisees. In the second quarter of 2024, the franchise sector recorded a turnover of R$ 61.205 billion, with growth of 12.8% in relation to the same period of 2023, according to the Brazilian Franchising Association (ABF). The food service was the second most outstanding, with a growth of 16.810 percent, digital costs, a differential use of gastronomic, has been driven by the food and food, a differential, a business, a.

Nagano recalls that, despite the potential for growth, the food sector in Brazil involves risks, such as variations in commodity prices, regulatory changes and economic instability. However, the opportunities offered make the Brazilian market attractive for investors seeking diversification and long-term returns. “Therefore, it is essential to research the business model that most aligns with their profile before investing”, concludes the executive.